State Administration of Taxation, Circular on Issues Relevant to the Administration of Exemption of Business Tax on Revenue Derived from Technology Transfers from Foreign Enterprises and Foreign Individuals to Entities inside China after the Cancellation of Administrative Examination and Approval in Respect of Taxation

Issued: June 23 2005
Applicability: The phrase "cases whose examination and approval has not yet been completed" refers to applications for tax reduction and exemption that have been accepted by tax authorities but the examination and approval procedures thereof have not yet been completed, or applications that, though have not been accepted by tax authorities, are technology transfer contracts of which technology transfer fees have actually been paid to the foreign parties before July 1 2004.

Main contents: For cases whose examination and approval has not yet been completed before the implementation of the Circular on Issues Relevant to Follow-up Administration after the Cancellation and Delegation of Several Taxation Administrative Examination and Approval Items Regarding Foreign-invested Enterprises, Foreign Enterprises and Foreign Individuals (the 2004 Circular), regardless of the date of execution of the contract and whether or not technology transfer fees are paid to the foreign parties, the case shall be handled in accordance with Article 12 of the 2004 Circular and the examination and approval procedures will not be carried out any more. Those who have already paid business tax may have payment offset or tax refund carried out with the competent tax authority.
Related legislation: Circular on Issues Relevant to Follow-up Administration after the Cancellation and Delegation of Several Taxation Administrative Examination and Approval Items Regarding Foreign-invested Enterprises, Foreign Enterprises and Foreign Individuals, 2004 and Ministry of Finance and State Administration of Taxation, Circular on Relevant Tax Questions Concerning Thorough Implementation of the , Nov 2 1999, CLP 2000 No.1 p.8