Recently, the National Development and Reform Commission of the PRC issued the Catalogue of Encouraged Industries in the Western Regions (2025 Edition), which will come into force from 1 January 2025.

The 2025 edition of the Catalogue consists of two sections as before, including:

1. The encouraged industries as set out in the existing national industrial catalogues, including the Catalogue for Guiding Industry Restructuring and the Catalogue for Encouraged Industries for Foreign Investment; and
   
   
2. The newly added encouraged industries in the western regions, which are listed by provinces or regions and applicable only to the corresponding province or region. The newly added items in the 2025 edition mainly cover the areas of characteristic agriculture and animal husbandry, electronic information, deep processing of resources, equipment manufacturing and etc.

According to the announcement on continuing the enterprise income tax policy in the western regions, eligible enterprises registered in the western regions (including Chongqing, Sichuan, Guizhou, Yunnan, Xizang, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia and Guangxi) can enjoy a preferential enterprise income tax rate of 15%. The eligible enterprise must meet the following conditions:

1. The main business of the enterprise shall be the encouraged industries listed in the Catalogue of Encouraged Industries in the Western Regions, and its main business income shall account for at least 60% of its total revenue.
   
   
2. Foreign invested enterprises must comply with the provisions of the Catalogue for Encouraged Industries for Foreign Investment.

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