Ministry of Finance and State Administration of Taxation, Circular on Several Issues Concerning the Implementation of Preferential Enterprise Income Tax Policies
财政部、国家税务总局关于执行企业所得税优惠政策若干问题的通知
June 06, 2009 | BY
clpstaff &clp articles &Circular clarifies the issue of double entitlement to preferential tax treatment.
Promulgated: April 24 2009
Effective: January 1 2008
Main contents: The Circular allows enterprises to enjoy various preferential tax treatment specified in the PRC Enterprise Income Tax Law and the Implementing Regulations for the PRC Enterprise Income Tax Law as long as such preferential tax treatment does not coincide with that specified in the State Council, Circular on the Implementation of Transitional Preferential Enterprise Income Tax Policies (Article 2).
Where a merger, division or re-organisation occurs in an enterprise during the period in which it is entitled to transitional preferential tax treatment, issues concerning its enterprise income tax shall be handled in accordance with the Ministry of Finance and State Administration of Taxation, Circular on Several Issues Concerning the Enterprise Income Tax Treatment of Enterprise Re-organisations (Article 3).
After January 1 2008, where tax-resident enterprises distribute among themselves returns on equity investments such as dividends and bonuses derived from accumulated undistributed profits from 2007 and previous years, matters shall be handled in accordance with Article 26 of the PRC Enterprise Income Tax Law and Articles 17 and 83 of the Implementing Regulations for the PRC Enterprise Income Tax Law (Article 4).
Where a (sub)-branch established by an enterprise before March 16 2007 was entitled to preferential tax treatment according to former domestic and foreign-invested enterprise income tax laws, it shall be independently entitled to transitional preferential enterprise income tax treatment stipulated in the State Council, Circular on the Implementation of Transitional Preferential Enterprise Income Tax Policies if it fulfils the requirements listed therein (Article 5).
Related legislation: PRC Enterprise Income Tax Law, Mar 16 2007, CLP 2007 No.3 p.21; and Implementing Regulations for the PRC Enterprise Income Tax Law, Dec 6 2007, CLP 2008 No.1 p.21; State Council, Circular on the Implementation of Transitional Preferential Enterprise Income Tax Policies, Dec 26 2007, CLP 2008 No.1 p.12; and Circular on Several Issues Concerning the Enterprise Income Tax Treatment of Enterprise Re-organisations, Apr 30 2009, CLP 2009 No.5 p.74
clp reference:3230/09.04.24promulgated:2009-04-24effective:2008-01-01This premium content is reserved for
China Law & Practice Subscribers.
A Premium Subscription Provides:
- A database of over 3,000 essential documents including key PRC legislation translated into English
- A choice of newsletters to alert you to changes affecting your business including sector specific updates
- Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
Already a subscriber? Log In Now