BEIJING — China's financial authorities decided to extend the term of tax relief measures targeting corporates in western China for another three years, as a powerful prop to promote the development and opening-up of the region.

The decision, effective from Jan 1, 2021 to Dec 31, 2023, will offer a lowered income tax rate of 15 percent for the designated firms in western regions, according to a recent circular jointly released by the Ministry of Finance, the State Tax Administration and the National Development and Reform Commission.

The preferential policy will apply to regions including Inner Mongolia autonomous region, Guangxi Zhuang autonomous region, Tibet autonomous region and Ningxia Hui autonomous region, provinces of Sichuan, Guizhou, Yunnan, Shaanxi, Gansu, Qinghai, city of Chongqing, as well as Xinjiang Uygur autonomous region, and Xinjiang Production and Construction Corps, the circular said.