(1) From January 1, 2021 to December 31, 2030, for new enterprises in difficult areas of Xinjiang within the scope of the Catalogue of Enterprise Income Tax Preferences for Priority Industries Encouraged for Development in Difficult Areas of Xinjiang, starting from the taxable year in which the first production and operation income is derived, the enterprises shall be exempted from enterprise income tax for the first year and the second year, and the local share of enterprise income tax for the third year and the fifth year shall be exempted from the local share of enterprise income tax. From the taxable year in which the first production and operation income is obtained, the enterprise shall be exempted from enterprise income tax for the first to second years, and during the period of half reduction of enterprise income tax from the third to the fifth years, the enterprise income tax shall be exempted from the local share of enterprise income tax. Enterprises enjoying the above enterprise income tax regular tax reduction and exemption policies will be taxed at half the taxable amount calculated according to the statutory enterprise income tax rate of 25% during the half-reduced period.

-- Notice on Preferential Policies on Income Tax for New Enterprises in Difficult Areas of Xinjiang and the Two Special Economic Development Zones of Kashgar and Khorgos by the Ministry of Finance and the General Administration of Taxation (Cai Shui 2021 27)

(2) During the period from January 1, 2021 to December 31, 2030, new enterprises eligible for the preferential policies on enterprise income tax in Xinjiang's difficult areas shall be exempted from the local share of enterprise income tax for the third to fifth years of the period of halving the enterprise income tax after enjoying the two-year exemption from the enterprise income tax since the taxable year in which the first income from production and operation is obtained. The local share of the income tax is exempted.

--Notice of the People's Government of Xinjiang Uygur Autonomous Region on Issues Concerning Preferential Policies on Enterprise Income Tax in Difficult Areas of Xinjiang and Kashgar and Khorgos Economic Development Zones (Xinzheng Fa 2021 No. 66)

(3) From January 1, 2021 to December 31, 2030, the enterprise income tax rate for enterprises in encouraged industries located in the western region shall be reduced by 15%. Encouraged industry enterprises referred to in this article are those enterprises whose main business is based on the industrial projects stipulated in the Catalogue of Encouraged Industries in the Western Region, and whose main business revenue accounts for more than 60% of the total revenue of the enterprise. left;">(4) Increase financial and tax support for processing trade enterprises. The VAT exemption policy applies to the re-export of goods processed from incoming materials, and the VAT exemption and offsetting tax applies to the production enterprises engaged in the business of imported materials processing.

- Implementation Opinions on Promoting the Innovative Development of Processing Trade (Xinzheng Fa [2016] No. 119)

(e) Since 2023 From January 1, 2023 to December 31, 2027, small-scale taxpayers of value-added tax (VAT), small micro-profit enterprises and individual industrial and commercial households will be given a 50% reduction in the levy of resource tax (excluding water resource tax), urban maintenance and construction tax, property tax, urban land-use tax, stamp duty (excluding stamp duty on securities transactions), cultivated land occupancy tax, and surcharges on education fees and local education surcharges. VAT small-scale taxpayers, small micro-profit enterprises and individual businessmen who have already enjoyed other preferential policies in accordance with the law, such as resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty, arable land occupation tax, surcharge on education fees and surcharge on local education, can enjoy this preferential policy on top of each other.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on the Further Implementation of the Policy of Reducing and Exempting Six Taxes and Two Fees for Small and Micro Enterprises" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 10 of 2022)

(vi) From January 1, 2023 to December 31, 2027, small-scale taxpayers of value-added tax ("VAT") shall be subject to a reduced VAT rate of 1% on their taxable sales revenue subject to a 3% levy rate; and the pre-paid VAT items subject to a 3% pre-paid VAT rate shall be subject to a reduced VAT pre-paid VAT rate of 1%.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax and Other Policies for VAT Small-Scale Taxpayers" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 13 of 2022)

-- Announcement of the Ministry of Finance and the State Administration of Taxation on the Policies of Reducing and Exempting Value-added Tax for Small-scale Taxpayers of Value-added Tax (Announcement No. 19 of 2023)

(vii) Effective from January 1, 2022, the temporary continue to implement the reduction of resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp duty (excluding stamp duty on securities transactions), occupation tax on cultivated land, and surcharge on education fees and surcharge on local education for small-sized taxpayers of the value-added tax (VAT) within the range of 50% of the tax amount.

--"Several Policy Initiatives of the Autonomous Region on Supporting the Development of the Real Economy by Reducing Taxes and Cutting Fees and Charges" (Xinzhengban Fa [2022] No. 5)

--Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementation of the Policy of Reducing and Exempting Six Taxes and Two Fees for Small and Micro Enterprises (Announcement of the Ministry of Finance and the State Administration of Taxation No. 10 of 2022)

--"Announcement of the State Administration of Taxation on Issues Related to the Levy and Management of the Further Implementation of the Policy of Reducing and Exempting Six Taxes and Two Fees for Small and Micro Enterprises" (Announcement of the State Administration of Taxation No. 3 of 2022)

(viii) Adjustment and optimization of the differential toll program for highways. Since December 13, 2021, the trial implementation of highway differential tolling policies such as differential tolling between passenger and truck zones, differential tolling between time slots for important passages, and the promotion of the ETC user membership point system, among which the differential tolling policy between passenger and truck zones and differential tolling policy between time slots for important passages will be implemented on a trial basis for one year until December 12, 2022. Adjustment and optimization before expiration, if no adjustment is required, it will automatically continue for one year without further approval.

--"Autonomous Region on Supporting the Development of the Real Economy to Reduce Taxes and Cut Fees Several Policy Initiatives" (Xinzhengban Fa [2022] No. 5)

(ix) Eligible small micro-profit enterprises with annual taxable income not exceeding 1 million yuan, a reduced rate of 25% of taxable income, pay enterprise income tax at a rate of 20%. The portion of the annual taxable income exceeding 1 million yuan but not exceeding 3 million yuan is reduced by 25% of the taxable income and the enterprise income tax is paid at a rate of 20%. Small and micro-profit enterprises are enterprises engaged in industries not restricted or prohibited by the state and meeting the three conditions of annual taxable income not exceeding 3 million yuan, the number of employees not exceeding 300, and the total assets not exceeding 50 million yuan.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementation of Preferential Policies on Income Tax for Small and Micro Enterprises" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 13 of 2022)

-- Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementation of Preferential Policies on Income Tax for Small and Micro Enterprises and Individual Entrepreneurs (Announcement of the Ministry of Finance and the State Administration of Taxation No. 6 of 2023)

-- Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementation of Tax and Fee Policies Related to the Development of Small and Micro Enterprises and Individual Industrial and Commercial Households (Announcement No. 12 of 2023)

(j) Retired soldiers engaged in self-employment shall be entitled to the preferential policies on income tax for small and micro enterprises and individual industrial and commercial households from the month of registration of their self-employed industrial and commercial households, within a certain period of time. From the month of registration of individual industrial and commercial households, the actual value-added tax, urban maintenance and construction tax, education surcharge, local education surcharge and individual income tax payable for that year shall be deducted in turn within three years (36 months, the same below) at the limit of 24,000 yuan per household per year.

Enterprises recruiting independently employed retired soldiers, and signing labor contracts of more than one year's duration and paying social insurance premiums in accordance with the law, from the month of signing the labor contract and paying the social insurance, within three years, according to the number of people actually recruited to be the fixed standard of 9,000 yuan per year per person, in order to deduct the VAT, urban maintenance and construction tax, education surcharges, local education surcharges and individual income tax. tax, urban maintenance and construction tax, education surcharge, local education surcharge and enterprise income tax.

-- Circular on Clarifying the Relevant Tax Policies on the Entrepreneurship and Employment of Independently Employed Retired Soldiers (Xin Cai Fa Zai [2023] No. 9).

(xi) "For small micro-profit enterprises, the portion of annual taxable income not exceeding 1 million yuan shall be reduced by 25% of the taxable income, and the enterprise income tax shall be paid at a rate of 20%. The implementation period of this announcement is from January 1, 2023 to December 31, 2027.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Further Implementation of Preferential Policies on Income Tax for Small and Micro Enterprises" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 13 of 2022)

(xii) In accordance with the policy of applying a 50% immediate refund of VAT to taxpayers for the sale of self-produced new wall materials listed in the catalog of the document.

 - Notice on the VAT Policy on New Wall Materials (Cai Shui [2015] No. 73)

(xiii) The income from engaging in agriculture, forestry, animal husbandry and fishery projects is reduced or exempted from enterprise income tax.

-- Cai Shui [2008] No. 149, Cai Shui [2011] No. 26, State Administration of Taxation Announcement No. 2 of 2010, State Administration of Taxation Announcement No. 48 of 2011

(xiv) Farmers' professional cooperatives are exempted from value-added tax (VAT) on the sale of agricultural products produced by their members or the sale of agricultural films, seeds, seedlings, fertilizers, pesticides, and agricultural machinery to their members. Since July 1, 2007, taxpayers producing and selling wholesale and retail drip irrigation tape and drip irrigation pipe products are exempted from value-added tax.

--Circular on Relevant Tax Policies for Farmers' Specialized Cooperatives (Cai Shui [2008] No. 81)

-- Supplementary Circular of the Ministry of Finance and the State Administration of Taxation on the Policy of Resuming the Levy of Value-added Tax on Fertilizers (Cai Shui [2015] No. 97)

-- Notice on the Circular on Exemption of Drip Irrigation Belts and Clear Irrigation Pipe Products from VAT (Cai Shui [2007] No. 83)

(xv) Fresh meat and egg products are exempted from VAT.

-- Notice of the Ministry of Finance and State Administration of Taxation on the Policy of Exempting Some Live and Fresh Meat and Egg Products from VAT in Circulation (Cai Shui [2012] No. 75)

(xv) Live and Fresh Meat and Egg Products are Exempted from Value Added Tax (VAT). left;">(xvi) Vegetables are exempted from value-added tax in circulation.

- Notice of the Ministry of Finance and State Administration of Taxation on Issues Related to Exemption of Vegetables from Value-added Tax in the Circulation Segment (Cai Shui [2011] No. 137)

(xvii) Feed products are exempted from value-added tax.

- Circular of the Ministry of Finance and State Administration of Taxation on the Exemption of Feed Products from Value-added Tax (Cai Shui [2001] No. 121)

( (XVIII) production and sales and wholesale and retail organic fertilizer products are exempt from value-added tax.      

-"Ministry of Finance, State Administration of Taxation on organic fertilizer products are exempt from value-added tax on the circular

(Cai Shui [2008] No. 56)

(xix) Regular reduction and exemption of enterprise income tax on income from investment and operation of public infrastructure projects supported by the State.

-- Cai Shui [2008] No. 46, Cai Shui [2008] No. 116, Cai Shui [2012] No. 10, Cai Shui [2014] No. 55, Guo Shui Fa [2009] No. 80

(xx) The land used for the operation of urban bus battlefields, road passenger battlefields, and urban rail transit systems is exempted from urban land use tax. The implementation period is extended to December 31, 2023.

-- Notice of the Ministry of Finance and the State Administration of Taxation on Continuing to Reduce and Exempt Urban Land Use Tax Preferential Policies for Urban Bus Battlefields, Road Passenger Battlefields, and Urban Rail Transportation Systems (Cai Shui [2019] No. 11);

- Announcement of the Ministry of Finance and the State Administration of Taxation on the Extension of the Implementation Period of Some Preferential Tax Policies (Announcement of the Ministry of Finance and the State Administration of Taxation No. 4 of 2022)

( (XXI) Property tax and urban land use tax shall be exempted for property and land used exclusively for agricultural products in wholesale markets for agricultural products and farmers' markets (including owned and leased). Wholesale markets for agricultural products and farmers markets at the same time operating other products using property, land, other products and agricultural products trading site area in proportion to determine the levy and exemption of property tax and urban land use tax.

-- Notice of the Ministry of Finance and the State Administration of Taxation on the Continuation of Preferential Policies on Property Tax and Urban Land Use Tax for Agricultural Products Wholesale Markets and Farmers' Markets (Cai Shui [2019] No. 12)

-- Announcement of the Ministry of Finance and the State Administration of Taxation on the Extension of the Implementation Period of Some Preferential Tax Policies (Announcement of the Ministry of Finance and the State Administration of Taxation No. 4 of 2022)

--Announcement on Clarifying the Policy of VAT Addition and Deduction for Living Service Industry (Announcement of the Ministry of Finance and the State Administration of Taxation No. 87 of 2019)

(xxii) From January 1, 2023 to December 31, 2027, for the From 1 January 2023 to 31 December 2027, the urban land use tax on land owned (including self-use and lease) or leased by logistics enterprises for bulk commodity warehousing facilities will be reduced by 50% of the applicable tax standard of the land class to which it belongs.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Continuing to Implement the Preferential Policies on Urban Land Use Tax for Land Used by Logistics Enterprises for Warehousing Facilities for Bulk Commodities" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 5 of 2023)

(xxiii) If the R&D expenses actually incurred by enterprises in carrying out R&D activities do not result in the formation of intangible assets to be recognized as profit or loss for the current period, on the basis of actual deduction in accordance with the regulations, from January 1, 2023 onwards, they will be further deducted in accordance with the 100% of the actual amount incurred before tax; and if they result in the formation of intangible assets, from January 1, 2023 onwards, they will be deducted in accordance with the 200% of the cost of the intangible assets to be deducted before tax. 200% of the cost of the intangible asset is amortized before tax.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Further Improving the Policy of Pre-tax Deduction of Research and Development Expenses" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 7 of 2023)

(xxiv) From January 1, 2023 to December 31, 2023, taxpayers in the production service industry are allowed to add 5% to the current period's deductible input tax amount to offset the tax payable. Taxpayers in the productive services industry are those taxpayers whose sales obtained from the provision of postal services, telecommunication services and modern services account for more than 50% of all sales.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax and Other Policies for VAT Small-Scale Taxpayers" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 1 of 203)

(xxv) From January 1, 2023 to December 31, 2023, taxpayers in the living service industry are allowed to offset their tax payable in accordance with the current period's deductible input tax plus 10%. Taxpayers in the living service industry are taxpayers whose sales obtained from the provision of living services account for more than 50% of all sales. The living service industry includes culture and sports, education and medical care, tourism and entertainment, catering and accommodation, residents' daily services and other living services.

--"Announcement of the Ministry of Finance and the State Administration of Taxation on Clarifying the Policies of Reducing and Exempting Value-added Tax and Other Policies for VAT Small-Scale Taxpayers" (Announcement of the Ministry of Finance and the State Administration of Taxation No. 1 of 2023)