State Administration of Taxation, Circular on Issues Relevant to the Payment of Enterprise Income Tax by Foreign-invested Enterprises Engaging in Telecommunications Business

国家税务总局关于从事通信业务的外商投资企业缴纳企业所得税有关问题的通知

July 02, 2007 | BY

clpstaff &clp articles &

Time limits for depreciation of telecommunications equipment adjusted.

Clp Reference: 3210/07.05.30 Promulgated: 2007-05-30

Issued: May 30 2007
Effective: As of the tax year 2006

Main Contents: Item One of Article 1 states that fixed assets such as telecommunications towers, cable ducts, simple premises and mobile premises shall be depreciated according to the 10-year time limit specified in Article 35 of the PRC Implementing Rules for the Foreign-invested Enterprise and Foreign Enterprise Income Tax Law (the Implementing Rules). The depreciation time limit for telecommunications equipment and computer system equipment shall be changed from seven years to a minimum of five years as stipulated in Article 35 of the Implementing Rules (Item Two, Article 1). Articles Two to Four cover issues concerning the deduction of employee cost, deduction of expenses for the point rewards programmes for customers, and the work unit for calculating audit entertainment expenses.

Related Legislation: PRC Implementing Rules for the Foreign-invested Enterprise and Foreign Enterprise Income Tax Law, Jun 30 1991, CLP 1991 No.7 p.16

clp reference:3210/07.05.30(2)promulgated:2007-05-30

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