Circular of the State Administration of Taxation on Issues concerning the Income Tax on Insurance Enterprises
Circular of the State Administration of Taxation on Issues concerning the Income Tax on Insurance Enterprises
Circular of the State Administration of Taxation on Issues concerning the Income Tax on Insurance Enterprises
Guo Shui Fa [1999] No.169
September 14, 1999
In order to strengthen the administration of the collection of income tax from insurance enterprises, we hereby, in accordance with the relevant provisions of the Interim Regulations of the People's Republic of China on Enterprise Income Tax and its detailed rules for implementation, in combination with the operational features of the insurance enterprises and the actual situations of tax collection and administration, present the following notification concerning the issues of enterprise income tax of domestic-funded insurance enterprises:
I. In regard to the income of insurance enterprises from sources outside China, enterprise income tax must be paid in accordance with the provisions of the Interim Regulations of the People's Republic of China on Enterprise Income Tax and the relevant tax laws and regulations.
II. When an insurance enterprise calculates its taxable income, all of the items that are allowed to be deducted must be implemented in accordance with the deduction standards as stipulated in the tax laws and regulations. In the event that the expense-listing standard as stipulated in the financial and accounting systems is not identifiable with the deduction standard as stipulated in the tax laws and regulations, the tax payment adjustment shall be conducted in accordance with the tax laws and regulations.
The expense evaluation index of the relevant departments and enterprises may not be used as the basis for tax deduction and the calculation or levying of taxes.
III. The agent handling the fees paid by the insurance enterprises in the current year may be deducted within the scope of less than 8% of the paid-up premium of the agent business based on the lawful vouchers, and the commissions paid by the insurance enterprises in the current year may be deducted within the scope of less than 5% of the paid-up premium of the marketing business during the payout period based on the lawful vouchers.
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