Circular of the Ministry of Finance and the State Administration of Taxation on Matters concerning Preferential Policies for Enterprise Income Tax
Circular of the Ministry of Finance and the State Administration of Taxation on Matters concerning Preferential Policies for Enterprise Income Tax
Circular of the Ministry of Finance and the State Administration of Taxation on Matters concerning Preferential Policies for Enterprise Income Tax
Cai Shui Zi [1994] No.1
March 29, 1994
Government of provinces, autonomous regions and municipalities directly under the central government; ministries and commissions under the State Council; and agencies directly under the State Council,
According to the principle set in the Interim Regulations of the People's Republic of China on Enterprise Income Tax, preferential policies of enterprise income tax which are policy-oriented, widely influential and conducive to economic development and social stability shall still be applicable upon approval by the State Council. Notification is hereby made on the relevant matters as follows:
I. Enterprises which meet all of the following requirements may benefit from tax relief upon examination and approval by taxation authorities:
1. High-tech enterprises established in high-tech industrial development zones upon approval by the State Council may be subjected to income tax at a rate of 15%; newly established high-tech enterprises may be exempted from income tax for the two years following the year when production is started. The provisions contained herein shall be interpreted as follows:
(1) Enterprises located in high-tech industrial development zones upon approval by the State Council which are recognized as high-tech enterprises by relevant authorities may be subjected to income tax at a rate of 15%.
(2) Newly established high-tech enterprises located in high-tech industrial development zones upon approval by the State Council may be exempted from income tax for the two years following the year when production is started.
2. In order to support and encourage development of enterprises of the tertiary industry (including enterprises of tertiary industries which are transformed from industrial enterprises owned by the people), income tax levied on such enterprises may be reduced or exempted for a specific period. The detailed rules are as follows::
(1) Rural enterprises which provide services for agricultural production before, during and after planting shall mean technical promotion stations in towns and villages, plant protection stations, water management stations, forest management stations, aquaculture stations, seed supply stations, farm machinery stations, meteorological stations, technical associations and professional cooperatives organized by farmers. Incomes gained by such units as well as other public service institutions for the aforesaid technical services or labor may be exempted from income tax at present.
(2) For scientific research institutes, colleges and universities, incomes gained from transfer of research achievements, technical training, consultancy, technical services and technical contracting shall be exempted from income tax at present.
(3) Newly established enterprises and business units with independent accounting which provide consulting services (including consultations on technology, law, accounting, auditing and tax), information-related and technical services may be exempted from income tax for the first two years following commencement of business.
......
Cai Shui Zi [1994] No.1
March 29, 1994
Government of provinces, autonomous regions and municipalities directly under the central government; ministries and commissions under the State Council; and agencies directly under the State Council,
According to the principle set in the Interim Regulations of the People's Republic of China on Enterprise Income Tax, preferential policies of enterprise income tax which are policy-oriented, widely influential and conducive to economic development and social stability shall still be applicable upon approval by the State Council. Notification is hereby made on the relevant matters as follows:
I. Enterprises which meet all of the following requirements may benefit from tax relief upon examination and approval by taxation authorities:
1. High-tech enterprises established in high-tech industrial development zones upon approval by the State Council may be subjected to income tax at a rate of 15%; newly established high-tech enterprises may be exempted from income tax for the two years following the year when production is started. The provisions contained herein shall be interpreted as follows:
(1) Enterprises located in high-tech industrial development zones upon approval by the State Council which are recognized as high-tech enterprises by relevant authorities may be subjected to income tax at a rate of 15%.
(2) Newly established high-tech enterprises located in high-tech industrial development zones upon approval by the State Council may be exempted from income tax for the two years following the year when production is started.
2. In order to support and encourage development of enterprises of the tertiary industry (including enterprises of tertiary industries which are transformed from industrial enterprises owned by the people), income tax levied on such enterprises may be reduced or exempted for a specific period. The detailed rules are as follows::
(1) Rural enterprises which provide services for agricultural production before, during and after planting shall mean technical promotion stations in towns and villages, plant protection stations, water management stations, forest management stations, aquaculture stations, seed supply stations, farm machinery stations, meteorological stations, technical associations and professional cooperatives organized by farmers. Incomes gained by such units as well as other public service institutions for the aforesaid technical services or labor may be exempted from income tax at present.
(2) For scientific research institutes, colleges and universities, incomes gained from transfer of research achievements, technical training, consultancy, technical services and technical contracting shall be exempted from income tax at present.
(3) Newly established enterprises and business units with independent accounting which provide consulting services (including consultations on technology, law, accounting, auditing and tax), information-related and technical services may be exempted from income tax for the first two years following commencement of business.
......