State Administration of Taxation, Official Reply on the Issue of the Handling of Preferential Income Tax Treatment of Foreign-invested Enterprises that Have Been Shut Down by the Government

Issued: February 12 2010

Main contents: With respect to the issue of handling the preferential tax treatment of foreign-invested enterprises that have been shut down and liquidated as a result of revisions in state development plans (including urban construction plans, etc.), resulting in their no longer satisfying the conditions of the former PRC Income Tax Law Concerning Foreign-invested Enterprises and Foreign Enterprises and transitional policies, they shall pay back or return the amounts of the preferential enterprise income tax treatment that they enjoyed pursuant to pursuant to Article 79 of the former Implementing Rules for the PRC Income Tax Law Concerning Foreign-invested Enterprises and Foreign Enterprises (Article 1).