The State Administration of Taxation has issued a circular to clarify definitions contained in a previous circular regarding tax incentives for projects in China’s western regions, including Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shaanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia and Guangxi.

The administration states that the phrase ‘newly established transportation companies’ refers to those that ‘invest and operate’ roads, railways, aviation facilities, ports and wharves, and pipeline transportation systems, and which generate operating revenues from these activities.