Announcement on Issues Concerning the Enterprise Income Tax Treatment of Income Derived from the Transfer of Property, Etc. by Enterprises

关于企业取得财产转让等所得企业所得税处理问题的公告

When an enterprise derives revenue from the transfer of property, etc., it shall include all of the revenue in the year that is recognised to be the year in which such revenue is derived.

Clp Reference: 3230/10.10.27 Promulgated: 2010-10-27 Effective: 2010-11-26

(Issued by the State Administration of Taxation on October 27 2010 and effective 30 days from the date of issuance.)

SAT Announcement [2010] No.19

(国家税务总局于二零一零年十月二十七日发布，自发布之日起30日后施行。)

Pursuant to Article 25 of the Implementing Regulations for the PRC Enterprise Income Tax Law, we hereby announce to you the following on the issue of the levy of enterprise income tax on revenue derived in different forms by enterprises from the transfer of property, etc.:

1. When an enterprise derives revenue from the transfer of property (including various types of assets, equity, claims, etc.), debt restructuring, acceptance of donations, payables that are impossible to discharge, etc., it shall, regardless of whether such revenue is realised in monetary or non-monetary form, include all of the same in the year that is recognised to be the year in which such revenue is derived, and calculate and pay enterprise income tax thereon, unless otherwise provided.

国家税务总局公告 [2010] 第19号

2. This Announcement shall be implemented 30 days from the date of issuance. With respect to income calculated on the aforementioned revenue from January 1 2008 until the implementation of this Announcement that local authorities have divided equally over five years and included in the taxable income of each of those years for the purpose of the calculation and payment of tax, all of the taxable income on which tax has not yet been calculated and paid at the time of the issuance of this Announcement shall be treated as taxable income for this year, and tax shall be calculated and paid thereon.

clp reference:3230/10.10.27prc reference:国家税务总局公告 [2010] 第19号promulgated:2010-10-27effective:2010-11-26

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