Because of a package of tax breaks, companies registered in Tibet are subject to a corporate tax rate of 15 per cent, well below the national standard rate of 25 per cent. The overall tax rate can drop to as low as 9 per cent as a result of other incentives granted by local governments. The tax breaks have been put in place to attract companies to shift to Tibet or Xinjiang, but companies are reluctant to relocate due to high transportation costs.