City construction tax, education fee surcharge do not have to pay; property tax do not have to pay, pay the city real estate tax. Land use tax does not have to pay, only pay land use fees
Chapter I Income Tax Preferential Policies
Article 8 of the Income Tax Law of the People's Republic of China on Foreign-Invested Enterprises and Foreign Enterprises
Article 8 For productive foreign-invested enterprises with an operating period of more than ten years, starting from the year when they begin to make profits, they are exempted from the enterprise income tax for the first year and the second year, and are exempted from enterprise income tax for the third year and half of enterprise income tax for the third year and the fifth year. The enterprise income tax shall be reduced by half from the third to the fifth year, but if it belongs to the resource exploitation projects of petroleum, natural gas, rare metals, precious metals and so on, the State Council shall separately provide for it. If the actual operation period of a foreign-invested enterprise is less than ten years, it shall pay back the exempted or reduced enterprise income tax.
Foreign-invested enterprises engaged in agriculture, forestry and animal husbandry, and foreign-invested enterprises located in economically underdeveloped remote areas, after the expiration of the period of enjoying tax exemption or reduction in accordance with the provisions of the preceding two paragraphs, upon the application of the enterprise and the approval of the competent tax authorities of the State Council, they may continue to be entitled to a reduction of enterprise income tax of fifteen to thirty percent of the tax payable for a period of ten years in the future.
Where there is a need to change the exemptions or reductions of enterprise income tax in the preceding three paragraphs after the implementation of this Law, the State Council shall report the decision to the Standing Committee of the National People's Congress.
The Recognition of Productive Enterprises
Article 72 of the Rules for the Implementation of the Law of the People's Republic of China on Income Tax for Foreign-Invested Enterprises and Foreign Enterprises of the People's Republic of China
Article 72: Productive foreign-invested enterprises as referred to in Article 7(1), (2) and Article 8(1) of the Tax Law refer to the foreign-invested enterprises which are engaged in the following industries:
(1) (a) machinery manufacturing and electronics industry; (b) energy industry (excluding oil and natural gas extraction);
(c) metallurgy, chemical and building materials industry; (d) light industry, textile and packaging industry;
(e) medical devices and pharmaceutical industry; (f) agriculture, forestry, animal husbandry, fishery and water conservancy industry; (g) construction industry; (h) transportation industry (excluding passenger transportation);
(ix) scientific and technological development, geological survey, industrial information consulting and production equipment, precision instrument maintenance services directly for production services;
State Taxation (1994) No. 209
Notice of the State Administration of Taxation on the Issues of How to Enjoy Tax Preferences on the Combination of Producing and Non-Producing Businesses of Foreign-Invested Enterprises
According to the Chinese People's **** and the Income Tax Law of Foreign Invested Enterprises and Foreign Enterprises of the People's Republic of China (hereinafter referred to as the Tax Law and the Rules), the State Administration of Taxation (SAT) hereby notifies the following issues regarding the application of tax preferences to foreign-invested enterprises engaging in both productive and non-productive businesses (hereinafter referred to as part-time foreign-invested enterprises):
One, if a foreign-invested enterprise does not have any productive businesses in the business scope as limited in the business license of the foreign-invested enterprise, regardless of whether its The business license of a foreign-invested enterprise is limited to the scope of business without productive business, regardless of the proportion of productive business in the actual business activities, shall not be treated as a productive enterprise to enjoy the relevant tax incentives.
Two, if a foreign-invested enterprise has both productive and non-productive businesses in its business scope as defined in its business license, or if it has only productive businesses in its business scope as defined in its business license, but it is actually engaged in non-productive businesses, the preferential tax policies applicable to it may be determined in the following manner:
(1) During the period of tax reduction or exemption calculated in accordance with the stipulations of Article 8 of the Tax Law, which is to be counted from the year in which the enterprise starts to make profits, the tax reduction or exemption period shall be calculated in the same manner as that for the enterprise in question. (a) Within the tax exemption and reduction period calculated from the year in which the enterprise starts to make profits as stipulated in Article 8 of the Tax Law, a part-time foreign-invested enterprise may, in the year in which its income from productive operations exceeds 50 percent of its total business income, submit an application, and upon the approval of the competent tax authorities, enjoy the corresponding tax exemption and reduction in that year; and it shall not enjoy the corresponding preferential tax exemption and reduction in the year in which its income from productive operations does not exceed 50 percent of its total business income.
(2) A part-time foreign-invested enterprise located in an area where the tax rate is reduced as stipulated in Article 7 of the Tax Law and the State Council shall start enjoying the preferential treatment of the relevant reduced tax rate from the year in which its productive operating income exceeds 50% of its total business income for the first time.
This Circular shall be implemented from January 1, 1994 onwards.
Three: (94) Cai Shui Zi No. 051
Notice of the Ministry of Finance and State Administration of Taxation on the Interpretation of the Relevant Items of Article 72 of the Implementing Rules of the Income Tax Law of the Foreign Invested Enterprises and Foreign Enterprises
Recently, the tax bureaus of some provinces and municipalities have reflected that some of the provisions of Article 72 of the Implementing Rules of the Income Tax Law of the Foreign Invested Enterprises and Foreign Enterprises (hereinafter referred to as the Rules) have been subject to the boundary in the actual implementation. (hereinafter referred to as the Rules) that some provisions in Article 72 of the Rules are not clear enough in actual implementation. After study, the relevant items of Article 72 of the Rules are clarified as follows:
1. The scientific and technological development, geological census and industrial information consulting business directly serving the production as stipulated in Item 9 of Article 72 of the Rules refers to the following: the scientific and technological results of the development can directly constitute the manufacturing technology of the products or the management technology of the product production process, and the results of the data of the geological census can be directly used in the development and utilization of various kinds of resources, and the results of the development and utilization of these technologies or technologies for these or other products can be directly used in the management of the production process of products. development and utilization, as well as information consulting and computer software development for these technologies or development and utilization of resources; excluding accounting, auditing, legal, asset evaluation, market information, intermediary and other services for various enterprises, as well as the development of computer software other than the technologies or development and utilization of resources that fall under the above limitation.
2. Foreign-invested enterprises specializing in the purchase of goods for simple assembly, packaging, packaging, cleaning, selection, finishing the sale of business, where no change in the form of the original goods, performance, composition, are engaged in the sale of goods, should not be identified as productive foreign-invested enterprises. For example: enterprises engaged in the purchase or import of complete sets of electrical appliances or equipment pieces, simple assembly and sale of enterprises; engaged in the purchase of various types of beverages, food products for filling, packaging, packaging and sale of enterprises, including specializing in the provision of such filling, packaging, packaging services industry.
Previously, the determination of productive foreign-invested enterprises around the inconsistency with the principles of this Circular shall be corrected in accordance with the principles of this Circular. In the future, in case of any special circumstances that make it difficult to determine, the situation should be reported to the State Administration of Taxation, which will approve the unified implementation of the localities after the finalization of the State Administration of Taxation.
The above notice, please follow the implementation.
Four, State Taxation [1992] No. 109
According to the Implementing Rules of the Law on Income Tax of Foreign Invested Enterprises and Foreign Enterprises (hereinafter referred to as the Implementing Rules), Article 72, paragraph 1, item 10, the interpretation of the productive foreign-invested enterprises in other industries is hereby clarified as follows:
I. Foreign-invested enterprises that specialize in the following businesses. Can be recognized as productive foreign-invested enterprises:
(a) engaged in construction, installation, assembly engineering design and the provision of labor for engineering projects (including consulting services);
consulting services, including the reform of engineering and construction or the enterprise's existing production technology, the improvement of production and business management and technological choices, as well as the enterprise's existing production equipment or products, in order to improve or enhance the performance, efficiency, quality, etc.;
(ii) engaging in rearing, breeding (including aquaculture), planting (including planting of flowers), raising livestock, dogs, cats and other animals;
(iii) engaging in the scientific research and development of production technology;
(iv) using its own means of transportation and storage facilities to provide direct warehousing and transportation services.
II. Foreign-invested enterprises specializing in the following businesses shall not be regarded as productive foreign-invested enterprises:
(I) engaging in indoor and outdoor decoration, furnishing or installation and commissioning of indoor facilities;
(II) engaging in the business of production of advertisements, name cards, pictures and the like, and the distribution of books and periodicals;
(III) engaging in the processing and production of foodstuffs, mainly for the purpose of setting up their own catering halls or store sales;
(iv) Engaged in the repair of household electrical appliances and the repair of household utensils.
Third, the implementation of the rules of Article 72, paragraph 1 (9) of the "production equipment, precision instrument maintenance services", excluding vehicles, electrical appliances, computer monitoring systems and general instrumentation, instrumentation maintenance.
V.
Sixth, the State Administration of Taxation (1995) No. 140
Sate Administration of Taxation on the foreign-invested enterprises in the preparatory period of income tax on income tax issues of the notice
Recently, some areas inquired about productive foreign-invested enterprises in the preparatory period of the unproductive income on how to calculate income tax issues. After study, it is hereby clarified as follows:
According to the provisions of Article 4 of the Income Tax Law of the People's Republic of China on Foreign-Invested Enterprises and Foreign Enterprises (hereinafter referred to as the Tax Law), the unproductive income of a productive foreign-invested enterprise obtained during the preparatory period, less the costs, expenses and losses relating to the said income, shall be regarded as the taxable income of the enterprise for the current period and be taxed in accordance with the provisions of Article 5 and Article 7 of the Tax Law. the tax rates stipulated in Articles 5 and 7 of the Tax Law, but may be excluded from the profit-making year for the calculation of the preferential period for tax reduction or exemption.
VII. State Taxation Letter (2001)No.838
Approval of the State Administration of Taxation on the Confirmation of the Operation Period of Changmao Biochemical Engineering Company Limited
Jiangsu Provincial State Taxation Bureau:
Your Bureau's "Request for Changmao Biochemical Engineering Company Limited to Enjoy the Tax Benefits of Regular Tax Reduction and Exemption of Enterprise Income Tax" (Su Guo Shui Fa [ 2001]No.294) has been approved by the State Taxation Bureau of Jiangsu Province. 2001] No. 294) is received. Changmao Bio-Chemical Engineering Co., Ltd. is a productive foreign-invested enterprise engaged in the production of chemical raw materials and products. According to the relevant laws and regulations of China, the Articles of Association and Business License of the company have not agreed on the specific period of its operation. Regarding how Changmao Bio-engineering Co., Ltd. can grasp the operation period of "ten years" when enjoying the "two exemptions and three half-reduces" tax preferences stipulated in Article 8 of the "Law of the People's Republic of China on Income Tax for Foreign Invested Enterprises and Foreign Enterprises" (hereinafter referred to as the Tax Law), we hereby approve the following: The company is engaged in production of chemical raw materials and products. The issue is hereby approved as follows:
Where a foreign-invested enterprise has not agreed on a specific operating period in its articles of association or business license in accordance with relevant national laws and regulations, and if the board of directors or general meeting of the company has made a resolution on the estimated operating period or made a written commitment to the competent tax authorities to affirm that its actual operating period will be not less than 10 years, it may be recognized first that the enterprise has already fulfilled the operating period requirement as stipulated in Article 8 of the Tax Law, and the enterprise shall be entitled to the "ten-year" operating period as stipulated in the relevant regulations. The enterprise may first be recognized as having met the requirement of years of operation as stipulated in Article 8 of the Tax Law, and shall be granted the corresponding tax reduction and exemption for productive foreign-invested enterprises as stipulated in Article 8 of the Tax Law in accordance with the relevant provisions; if the actual period of operation of the enterprise in the future is less than 10 years, the enterprise shall be subjected to the exempted or reduced enterprise income tax, unless otherwise stipulated.
VIII. Special Application:
(Cai Shui [2002] No. 056)
Notice of the Ministry of Finance and the State Administration of Taxation on the Preferential Policies for Enjoyment of Enterprise Income Tax on Additional Investments by Foreign-Invested Enterprises
Foreign-invested enterprises engaged in the Encouraged Projects in the Catalogue of Industry Guidance for Foreign-Invested Enterprises approved by the State Council shall be entitled to enjoy preferential policies on enterprise income tax if any one of the following conditions is met. If one of the following conditions is met, the income obtained by the investor from additional investment projects other than the original contract can be separately calculated and enjoy the preferential enterprise income tax reductions and exemptions (i.e., two exemptions and three halves of enterprise income tax reductions) stipulated in Article 8, Paragraphs 1 and 2 of the Tax Law: (a) the amount of additional registered capital formed by the additional investment reaches or exceeds 60 million U.S. dollars; (b) the additional registered capital formed by the additional investment reaches or exceeds 15 million U.S. dollars, and reaches or exceeds the enterprise's original registered capital. (ii) the amount of additional registered capital formed by the additional investment reaches or exceeds 15 million U.S. dollars and reaches or exceeds 50% of the original registered capital of the enterprise.
Foreign-invested enterprises should distinguish between the production and operation of the additional investment project and the production and operation of its prior investment, and set up separate books and vouchers to accurately calculate their respective taxable income. Where it is not possible to reasonably calculate the respective taxable income, the competent tax authorities may reasonably divide the respective taxable income in proportion to the income and assets of the enterprise.
Approval and Approval of Tax Preferences for Foreign-Invested Enterprises Investing in Phases or Making Additional Investments
I. Approval and Approval of Tax Preferences for Phase-by-Phase Construction and Phase-by-Phase Commissioning and Operation
(1) Basis:
The Circular of the Ministry of Finance and the State Administration of Taxation on the Regulations on the Issues of Several Issues Concerning the Collection and Application of Income Taxes for Sino-foreign Equity Joint Ventures, Cooperative Production and Operations and Enterprises Operating under the Sole Proprietary Ownership of Foreign Enterprises. Article 2 of the Circular Cai Shui Wai Zi [86] No. 102
(2) Conditions:
If a joint venture, cooperative production and operation enterprise or a wholly foreign-owned enterprise needs to be constructed, put into operation and operated in phases according to the amount of investment stipulated in the approved contract (excluding the part of additional investment), the investment, expenses and income and revenues from production and operation for the part that is firstly put into operation and the part that is later put into operation shall be set up separately. Production and operation income, income should be set up separately for accounting, can be clearly divided clearly, by the enterprise to the competent state tax authorities to apply, reported to the enterprise's provincial, autonomous regions, municipalities directly under the Central Government Taxation Bureau for approval, can be calculated separately the period of tax exemption and reduction.
(3) Time limit:
To be handled in accordance with the relevant provisions of the provincial tax bureaus.
(4) Procedures for enterprises to apply for the enjoyment of the above tax concessions:
Enterprises shall, after the second and subsequent phases of the project are put into operation, submit a written application to the competent local state tax authorities and provide the following information:
1. written application of the enterprise;
2. the original certificate of approval of the department of foreign trade and economic cooperation and its copy;
3. a copy of the business license, a copy of the tax registration certificate, a copy of the business license, a copy of the tax registration certificate, and a Copy of business license, original and copy of tax registration certificate;
4, original and copy of enterprise contract and articles of association;
5, original and copy of capital verification report of each stage of investment;
6, other information required to be submitted by the tax authorities.
(E) tax authorities to handle the review and examination procedures:
The local competent state tax authorities to accept and put forward a written report on the investigation of the report by level to the provincial tax bureau where the enterprise is approved.
Two, foreign-invested enterprises to enjoy the approval of additional investment tax incentives
(a) Based on:
"On the additional investment of foreign-invested enterprises to enjoy the preferential policies on enterprise income tax notice" Cai Shui Zi [2002] No. 056, Article 1
(b) Conditions:
1, engaged in the State Council-approved "Foreign Investment Industries (hereinafter referred to as the "Guidance Catalogue"), where any foreign-invested enterprise engaging in the encouraged projects in the "Guidance Catalogue" (hereinafter referred to as the "Guidance Catalogue") approved by the State Council meets one of the following conditions, the income obtained by its investor from the additional investment projects other than the original contract may be separately calculated and enjoy the preferential periodic reduction or exemption of the enterprise income tax provided for in Article 8, paragraphs 1 and 2 of the Tax Law:
(1) where the amount of the new registered capital formed by the additional investment amounts to or exceeds 60 million U.S. dollars;
(2) the amount of additional registered capital formed by additional investment reaches or exceeds 15 million U.S. dollars and reaches or exceeds 50% of the original registered capital of the enterprise.
2, on the scope of encouraging projects:
The "encouraging projects" referred to in the preceding paragraph refers to the foreign-invested projects approved for additional investment prior to April 1, 2002, which belonged to the "Guidance Catalog" issued by the former State Development Planning Commission and other departments in 1997, and the projects in the Encouraging and Restricting B categories. projects; and foreign investment projects approved for additional investment after April 1, 2002, which belong to the Encouraged Category in the Guidance Catalogue promulgated by the former State Development Planning Commission and other departments in 2002?
3. Regarding the calculation of new registered capital for multiple additional investments:
Foreign-invested enterprises can combine the production and operation projects formed by multiple additional investments (excluding the additional investments which do not form new production and operation projects) after the previous investment, if they have not enjoyed the preferential treatment of regular tax exemptions and reductions together with the previous investment projects, they can combine the production and operation projects formed by multiple additional investments into a single project for calculation. production and business projects can be combined into one project to calculate its new registered capital, and if the new registered capital of the combined project formed by such multiple additional investments meets the conditions stipulated in paragraph 1 above, the combined project can be separately calculated to enjoy the preferential treatment of regular tax reduction and exemption.
4. On the calculation of "original registered capital":
The "original registered capital" referred to in paragraph 1 above refers to the registered capital already formed by a foreign-invested enterprise before it makes additional investments in a new production and operation project or a merger project referred to in paragraph 3 above. The registered capital that has already been formed.
5. Regarding the calculation of the preferential period for tax reduction and exemption for multiple additional investments:
If a foreign-invested enterprise enjoys regular tax reduction and exemption for a combined production and operation project formed by multiple additional investments, and if it enjoys regular tax reduction and exemption separately calculated in accordance with the provisions of Article 3 above, the preferential period for tax reduction and exemption shall be calculated from the year of the profit of the production and operation project formed by the first of the multiple additional investments and shall be calculated from the year when the multiple additional investments reach the level of the first paragraph above, and from the time when the multiple additional investments reach the level of the first paragraph above. year in which the multiple additional investments fulfill the conditions set forth in paragraph 1 above, the tax relief preferential period shall begin to enjoy the preferential treatment for the remaining years of such tax relief preferential period.
6. Regarding the financial accounting of the additional investment projects:
Foreign-invested enterprises shall differentiate the production and operation of the additional investment projects from that of their prior investments, and shall set up separate books and vouchers to accurately calculate their respective taxable incomes. Where it is not possible to reasonably calculate the respective taxable income, the competent tax authorities may reasonably divide the respective taxable income in proportion to the income and assets of the enterprise.
(3) Time Limit:
To be handled in accordance with the relevant regulations of the provincial tax bureaus.
(4) Procedures for enterprises to apply for the enjoyment of the above tax concessions:
Enterprises shall, after the additional investment projects are put into operation, submit a written application to the competent local state tax authorities and provide the following information:
1. Written application of the enterprise;
2. The original and a copy of the feasibility report of the additional investment project
3, The original and copy of the approval document of the foreign trade and economic cooperation department for the additional investment;
4. The original and copy of the industrial and commercial license before and after the additional investment;
5. The original and copy of the tax registration certificate before and after the additional investment;
6. The original and copy of the capital verification report before and after the additional investment.
(E) tax authorities to handle the review and examination procedures:
The local competent state tax authorities to accept and put forward a written report on the investigation of the report of opinions reported to the provincial tax bureau where the enterprise is approved at each level.
Nine, Article 75 of the Implementing Rules of the Income Tax Law
(7) foreign-invested product export enterprises, in accordance with the provisions of the Tax Law exemption, reduction of enterprise income tax expiration of the period, where the value of exported products for the year reaches more than seventy percent of the value of the enterprise's products for the year, you can be in accordance with the tax rate specified in the tax law to reduce the collection of enterprise income tax by half. However, special economic zones and economic and technological development zones, as well as other product export enterprises that have already paid enterprise income tax at the rate of fifteen percent, shall be subject to enterprise income tax at the rate of ten percent if they meet the above conditions.
(viii) If an advanced technology enterprise organized with foreign investment remains an advanced technology enterprise after the expiration of the period of exemption or reduction of enterprise income tax in accordance with the provisions of the Tax Law, it may be extended for a period of three years to levy enterprise income tax at a reduced rate of half in accordance with the tax rate stipulated in the Tax Law.
State Taxation Letter (1995) No. 645
Please Notice on the Determination of the Production Value of Products Exported by Product Exporting Enterprises
Article 75(7) of the Rules for the Implementation of the Law of the People's Republic of China on the Income Tax of Foreign Invested Enterprises and Foreign Enterprises stipulates that a product exporting enterprise organized by a foreign invested enterprise shall be entitled to an extension of three years to collect half of the enterprise income tax according to the rates stipulated in the tax law after the expiration of the period of exemption and reduction of enterprise income tax in accordance with the tax law. After the expiration of the period of exemption or reduction of enterprise income tax in accordance with the provisions of the Tax Law, if the export output value of the enterprise reaches more than 70% of the enterprise product output value of the current year, the enterprise income tax may be levied at a half-reduced rate in accordance with the tax rate prescribed by the Tax Law. With regard to the scope of the product output value of the enterprise's exports, the Ministry of Foreign Trade and Economic Cooperation issued the "Implementation Measures of the Ministry of Foreign Trade and Economic Cooperation on the Confirmation and Examination of Foreign-Invested Product Exporting Enterprises and Enterprises with Advanced Technology" and its supplementary regulations ([1992] MOFTEC No. 119) on January 26, 1987, making a provision on the scope and content included in the calculation of the product output value of the enterprises' exports when recognizing the foreign-invested enterprise as a product exporting enterprise. The scope and content of what is included in the calculation of the output value of export products when a foreign-invested enterprise is recognized as a product exporting enterprise are specifically provided for. Therefore, the Bureau is of the opinion that the scope of calculating the output value of export products of foreign-invested enterprises for the purpose of applying the aforesaid tax preferences can be consistent with the scope of the aforesaid provisions of the Ministry of Foreign Trade and Economic Cooperation, that is to say, it includes:
One, the output value of products exported by enterprises on their own;
Two, the output value of products commissioned to be exported by agents of foreign trade companies;
Three, the output value of products actually exported by the foreign trade company after selling them to the foreign trade company;
4. Work payment for undertaking overseas processing;
5. Production value of exports by other means as recognized by the Ministry of Foreign Trade and Economic Cooperation.
In the specific calculation of foreign-invested enterprises in the current year's exports accounted for the proportion of the current year's product output value of the enterprise, can be combined with the Ministry of Foreign Trade and Economic Cooperation in the current year's assessment of the enterprise's export performance recognized in the statement of export performance to determine the number of.
X. Paragraph 3 of Article 8 of the Tax Law
Foreign-invested enterprises engaged in agriculture, forestry and animal husbandry, and foreign-invested enterprises located in economically underdeveloped remote areas shall, upon expiration of the tax exemption and reduction in accordance with the provisions of the preceding two paragraphs and upon the application of the enterprise and the approval of the competent tax authorities of the State Council, continue to be subject to a reduction of fifteen to thirty percent of the tax payable for a period of ten years from the expiration of the first two paragraphs. enterprise income tax.
Xi. Cai Shui Zi [2000] No. 049
Notice of the Ministry of Finance and the State Administration of Taxation on the Issues Relating to the Credit of Enterprise Income Tax on the Investment in Purchase of Domestic Equipment by Foreign-Invested Enterprises and Foreign Enterprises
The Department (Bureau) of Finance of the provinces, autonomous regions, municipalities directly under the central government, and municipalities with single-states plan, the State Administration of Taxation, and the Bureau of Local Taxation:
To carry out the relevant provisions of the Central Government and the State Council, the State Council has adopted the following measures. ** Central Committee, the State Council, the spirit of the relevant provisions, expanding the attraction of foreign investment, encourage foreign-invested enterprises and foreign enterprises to use domestic equipment, foreign-invested enterprises and foreign enterprises to purchase domestic equipment investment credit enterprise income tax related issues are notified as follows.
I. All foreign-invested enterprises set up in China, in the total amount of investment in the purchase of domestically produced equipment, in line with the "State Council on adjusting the tax policy of imported equipment notice" (Guo Fa [1997] No. 37) in the "Foreign Investment Industry Guidance Catalog" encouraging, restricting the investment projects in Category B, in addition to the "foreign investment projects are not" as stipulated in Guo Fa [1997] No. 37. In addition to the Catalogue of Imported Commodities Not Exempted from Taxation for Foreign Invested Projects stipulated in Guo Fa [1997] No. 37, 40% of the investment in the purchase of domestically produced equipment can be credited from the enterprise income tax added in the year of the purchase of the equipment as compared with the previous year. Note (Note: According to the Circular of the State Administration of Taxation on Relevant Tax Issues Concerning the Implementation of the New "Catalogue for the Guidance of Foreign-Invested Industries" (Guoshifa 〔2002〕 No.63), the preferential provisions on investment credit are also applicable to the investment projects approved after April 1, 2002, which belong to the Encouragement Class of investment projects in the new "Catalogue for the Guidance of Foreign-Invested Industries").
Foreign enterprises that have set up institutions or premises in China to engage in production and business activities are subject to these Measures mutatis mutandis.
For the above enterprises, in order to improve economic efficiency, enhance product quality, increase the variety of colors and colors, promote the upgrading of products, expand exports, reduce costs, save energy consumption, strengthen the comprehensive utilization of resources and the management of three types of wastes, and labor safety, etc., and to reform the existing facilities and conditions of the production process by adopting advanced and applicable new technologies, new techniques, new equipment, new materials, and so on, outside the total amount of investment, the purchase of domestically produced equipment shall be exempted from the total amount of investment. Purchase of domestically produced equipment, the purchase of domestically produced equipment, 40% of the investment can also be offset from the purchase of equipment in the year than the previous year's new enterprise income tax.
The domestic equipment allowed to be credited refers to the production and operation (including testing and inspection necessary for production) equipment manufactured by domestic enterprises, excluding the equipment directly imported from abroad and the equipment manufactured in the way of "three to one subsidy".
Third, foreign-invested enterprises and foreign enterprises in each year of investment tax credits shall not exceed the amount of enterprise income tax of the enterprise in the year than the equipment purchased in the previous year of the new enterprise income tax. If the amount of new enterprise income tax is not enough for the credit in the current year, the uncredited investment amount can be used to extend the credit in the following years than the amount of new enterprise income tax in the year before the equipment is purchased, but the maximum period of extension of the credit shall not exceed five years.
Foreign-invested enterprises and foreign enterprises enjoying the unified enterprise income tax reduction policy in accordance with the tax law adopted by the Standing Committee of the National People's Congress and the regulations and rules promulgated by the National People's Congress and the State Council may appropriately extend the period of continuation of the credit during the period of tax exemption, but the maximum period of continuation of the credit shall not exceed seven years.
Fourth, when applying for the credit for investment in domestically produced equipment, foreign-invested enterprises and foreign enterprises shall provide the competent tax authorities of their enterprise income tax with the invoices of purchasing domestically produced equipment and other valid certificates and information.
V. For the domestic equipment purchased by foreign-invested enterprises and foreign enterprises for which the value-added tax is refunded in accordance with the regulations, the refunded tax shall not be counted as the original price of the equipment.
Sixth, the implementation of investment credits for domestic equipment, can still be depreciated according to the original cost of equipment, and in accordance with the relevant provisions of the calculation of taxable income deductions.
Seven, foreign-invested enterprises and foreign enterprises will have enjoyed the investment credit of domestic equipment, within five years from the date of acquisition of leasing, transfer, should be leased, transfer of the equipment has been credited to make up for the enterprise income tax tax.
VIII. These measures shall be implemented from July 1, 1999 onwards. The specific operation methods shall be separately formulated by the State Administration of Taxation.
(Circular of the State Administration of Taxation on Certain Issues Concerning the Credit for Enterprise Income Tax on Investment in Purchase of Domestic Equipment by Foreign-Invested Enterprises and Foreign Enterprises)
I. Relevant Provisions on the Credit for Enterprise Income Tax on the Investment in Purchase of Domestic Equipment by Foreign-Invested Enterprises and Foreign Enterprises
Article 1: In order to realize the provisions on the credit for enterprise income tax on the investment in purchase of domestically produced equipment by foreign-invested enterprises and foreign enterprises (hereinafter referred to as enterprises) In order to implement the policy of enterprise income tax credit for the purchase of domestically produced equipment by foreign invested enterprises and foreign enterprises (hereinafter referred to as enterprises) and to standardize and strengthen the management of the audit, according to the Law of the People's Republic of China on Income Tax of Foreign Invested Enterprises and Foreign Enterprises (hereinafter referred to as the Law) and its Implementing Rules, and the Circular on Issues Relating to the Credit for the Purchase of Domestically Produced Equipment for the Purposes of Enterprise Income Tax by Foreign Invested Enterprises and Foreign Enterprises (Cai Shui Zi [2000] No.49, hereinafter referred to as the Circular) and other relevant regulations.
Article 2 These Measures shall apply to enterprises paying enterprise income tax on the basis of verified collection.
Article 3 The equipment referred to in the Circular refers to production and operation (including testing and inspection necessary for production) machines, machinery, means of transportation, equipment, appliances, tools and so on, which conform to the scope stipulated in the Circular and are managed as fixed assets. Does not include tools, appliances, etc. that are not managed as fixed assets.
Article IV of the notice referred to in the domestic equipment must be July 1, 1999, and the currency purchased without the use of domestic equipment, excluding the investor as a registered capital investment in equipment.
Article 5 The investment in domestic equipment referred to in the notice refers to the total price of the invoiced price and tax of the purchased equipment, but does not include the refund of the value-added tax in accordance with the relevant provisions of the value-added tax, as well as the cost of equipment transportation, installation and commissioning.
The time of equipment purchase is subject to the time of equipment invoice issuance. If the equipment is acquired in the form of installment payment or she-sale, the time of arrival of the equipment shall prevail.
Sixth, the enterprise purchase of domestic equipment investment credit enterprise income tax, by the enterprise to submit an application, by the competent tax authorities level by level to the provincial tax authorities for examination and approval.
Article 7 The amount of enterprise income tax credit for each year of investment by enterprises shall be credited within the limits and periods specified in the notice. Enterprises purchasing domestically produced equipment in the previous year for the loss or in the tax law exemption year, the equipment purchased the year before the amount of enterprise income tax to zero as the basis for calculating its new enterprise income tax.
Article VIII of the enterprise to buy domestic equipment in the previous year for the accumulated losses, the purchase of equipment in the current year or the subsequent year to realize the taxable income, should be in accordance with the provisions of the Tax Law, to make up for the losses of the enterprise in previous years, to determine the investment credit. If the enterprise purchases equipment in the current year or the following years in the tax exemption year under the tax law, its income tax payable in that year shall first be exempted from tax in accordance with the provisions of the tax law, and its equipment investment credit may be extended to the next year for the purpose of credit, but the period of extension shall not exceed the number of years as stipulated in the notice.
Article IX The amount of enterprise income tax investigated and compensated by the tax authorities, belonging to the equipment purchased in the previous years, shall be counted as the base of the enterprise income tax paid in that year; belonging to the year of the equipment purchased or in the subsequent years shall not be regarded as the amount of the new enterprise income tax that can be credited.
Article X. Enterprises applying for enterprise income tax credit shall submit an application report to the competent tax authorities within two months after the purchase of domestic equipment. After receiving the application, the competent tax authorities shall report to the provincial tax authorities. The provincial tax authorities shall make an examination and approval within one month after receiving the application, and at the same time, the approval document shall be copied to the enterprise.
The taxpayer shall provide the following information when submitting the application report:
(1) Application Form for Enterprise Income Tax Credit for Purchase of Domestic Equipments by Foreign-Invested Enterprises and Foreign Enterprises (the style is shown in the attached table 1);
(2) copy of business license of the legal person of the enterprise;
(3) copy of the tax registration certificate of the enterprise;
(iv) Copy of project approval letter of foreign economic and trade department;
(v) Copy of enterprise contract;
(vi) Copy of contract and invoice for supply of domestic equipment;
(vii) Copy of tax (for export goods) payment book;
(viii) Other information required by tax authorities.
Article 11 When an enterprise submits its annual income tax return and accounting statement to the competent tax authorities within four months after the end of each taxable year, it shall indicate the amount of enterprise income tax it applies for credit for the current year in the Remarks column of the tax return, and at the same time, it shall also submit the "Summary Audit Form of Enterprise Income Tax Credit for Purchase of Domestically-Made Equipment by Foreign-Invested Enterprises and Foreign Enterprises" (the format is shown in Schedule 2), the invoice (copy) of the equipment acquired, and the copy of the tax (special for exported goods) payment book. (see Attachment 2), invoices of the purchased equipment (copy), and Detailed Table of Enterprise Income Tax Credit for Purchase of Domestic Equipment by Foreign-Invested Enterprises and Foreign Enterprises (see Attachment 3 for the format).
Article 12 The competent tax authorities, upon receiving the relevant statements and information submitted by the enterprises, shall carefully examine the items and amounts reported by the enterprises and handle the enterprise income tax investment credit and remittance accordingly.
Article 13 The competent tax authorities shall strengthen the management of enterprise income tax credit for investment in purchasing domestically produced equipments, set up credit files and ledgers by households, collect and keep relevant documents and information in special files, and record in detail the amount of investment that should be credited, the amount of investment that has been credited, and the amount of investment that has not been credited.
Article XIV of the foreign-invested enterprises set up in the territory of the branches of the purchase of domestically produced equipment investment credit, unified in the head office location.
Article XV These Measures shall be implemented from July 1, 1999 onwards. Foreign-invested enterprises and foreign enterprises shall declare to the competent tax authorities before the end of June 2000 the investment in domestically produced equipment purchased between July 1, 1999 and December 31, 1999, which is eligible for the credit of enterprise income tax. The tax authorities at all levels shall, after examination and approval in accordance with the above provisions, complete the investment credit and tax refund by the end of September 2000.
Article 16 The tax authorities of provinces, autonomous regions, municipalities directly under the Central Government and municipalities with separate plans may formulate specific implementation plans in accordance with these Measures and report them to the State Administration of Taxation for the record.
(State Taxation Letter [2000] No. 910)
II. Specific Provisions
(1) On the definition of the scope of application of the state-encouraged projects
According to the Ministry of Finance and the State Administration of Taxation's "Notice on the Issues Relating to the Credit for Enterprise Income Tax on the Purchase of Domestically-Made Equipment Investment by Foreign-Invested Enterprises and Foreign Enterprises" (CaiShuiZi [2000] No. 49), the investment can be granted to the enterprise income tax credit for the purchase of domestically-made equipment. ), the domestically produced equipment that can be given investment credit for enterprise income tax refers to the domestically produced equipment used in the investment projects of Encouraged and Restricted Category B of the Industrial Guidance Catalog for Foreign Investment (excluding the Catalogue of Imported Commodities Not Exempted from Taxation for Foreign Investment Projects stipulated by the State Council on the Adjustment of Taxation Policies on Imported Equipments (Guofa [1997] No. 37)). Domestically produced equipment. Where in the implementation of the enterprise to buy domestic equipment belongs to the above provisions of the investment project scope of judgment is not allowed, or there is a dispute, you can consult the provincial foreign trade and economic cooperation departments to determine the views.
(2) On the issue of providing "a copy of the tax (special for exported goods) payment book" when applying for enterprise income tax credit
According to the provisions of Article 10 of the Administrative Measures, enterprises should provide the tax (special for exported goods) payment book when applying for enterprise income tax credit. If an enterprise purchases equipment from non-manufacturing sectors, or purchases equipment with funds other than the total investment, or does not obtain a tax (special for export goods) payment certificate, but is eligible for enterprise income tax credit according to the regulations, it can provide the invoice of the purchased equipment accordingly, and does not need to provide the tax (special for export goods) payment certificate when applying for enterprise income tax credit.
(Guo Shui Han [2004] No. 943)
For the foreign-invested enterprises which only set the registered capital or the total share capital in accordance with the regulations of the Ministry of Commerce (the former Ministry of Foreign Trade and Economic Cooperation) and don't approve the total amount of investment, the enterprises which purchase the domestically produced equipments within the total amount of investment can enjoy the credit of the enterprise income tax.