| Reply of the State Administration of Taxation on Issues concerning Applicable Catalogues to the Enterprise Income Tax Preference Policies for the Western Development |
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| Monday,November 02,2009 Posted: 21:41 BJT(41 GMT) |
| From:www.fdi.gov.cn Article type:Reproduced |
Guo Shui Han [2009] No.399
Gansu Provincial Office of SAT,
Your Request for Instructions on Taxation Issues concerning the Catalogue for Guiding Foreign Investment in Industries (Gan Guo Shui Fa [2009] No. 97) has been received. According to the Circular of the State Council on Implementation of Interim Enterprise Income Tax Preference Policies (Guo Fa [2007] No.39), the enterprise income tax preference policies for the Western Development as provided in the Circular of the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs on Issues concerning Tax Preference Policies for the Western Development (Cai Shui [2001] No.202) shall continue to be executed until expiration. The reply to the issues concerning applicable catalogue to the enterprise income tax preference policies for the Western Development after implementation of the Enterprise Income Tax Law of the People’s Republic of China are herein given as follows:
1. Issues concerning applicable catalogue and linkup for domestic enterprises engaged in industries under state encouragement that share enterprise income tax preference policies for the Western Development shall continue to be subject to the provisions prescribed in the Circular of the Ministry of Finance and the State Administration of Taxation on Issues concerning Modification of the Applicable Catalogue to Tax Preference Policies for the Western Development (Cai Shui [2006] No.165).
2. Issues concerning applicable catalogue and linkup for foreign-invested enterprises engaged in industries under state encouragement that share enterprise income tax preference policies for the Western Development shall conform to the following principles:
(1) Since Jan. 1, 2008, the Catalogue for Guiding Foreign Investment in Industries in the No. 202 document of the Ministry of Finance in 2001 shall be subject to the Catalogue for Guiding Foreign Investment in Industries (revised in 2007) promulgated by the National Development and Reform Commission. Since Jan. 1, 2009, the Superior Industry Catalogue for Foreign Investment in the Central and Western Areas in the No.202 document of the Ministry of Finance in 2001 (No. 18 Decree) shall be subject to the Catalogue of Superior Industries in the Central and Western Areas (revised in 2008) promulgated by the National Development and Reform Commission and the Ministry of Commerce.
(2) A foreign-invested enterprise enjoying enterprise income tax preference policies according to the catalogues as provided in the No.202 document of the Ministry of Finance in 2001 before modification of the relevant catalogues may continue to enjoy the preference until expiration, unless the enterprise engaged in any industry under the categories of restriction or prohibition of foreign investment according to the Catalogue for Guiding Foreign Investment in Industries (revised in 2007). For any enterprise engaged in industries under categories of restriction or prohibition of foreign investment as provided in the Catalogue for Guiding Foreign Investment in Industries (revised in 2007), the enterprise income tax preference policies for the Western Development shall be stopped to be executed as of the date of implementation of the new Catalogue.
As for any enterprise that does not satisfy the standards for category under encouragement according to the original Catalogue yet satisfies that according to the new one, it may enjoy tax preferences for the rest of the period for tax preference calculated according to the enterprise income tax preference policies for the Western Development since the implementation of the new Catalogue.
State Administration of Taxation
July 27, 2009 |
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