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Just as was done in China's coastal regions over the past several
years, the PRC government is now offering income tax incentives
so as to attract investment into China's central and western regions.
The State Administration of Taxation recently passed a three year,
15% income tax reduction for foreign funded enterprises that establish
themselves in China's central and western regions such as Xinjiang,
Quinghai, Sichuan provinces. Although there are still other tax
incentives in other regions of the country, companies are offered
these additional benefits to establish in the west and to take advantage
of the plentiful labor pool.
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