Circular of the State Administration of Taxation on Several Issues concerning Enterprise Income Tax of Banks

Circular of the State Administration of Taxation on Several Issues concerning Enterprise Income Tax of Banks

Guo Shui Fa [1999] No. 162

September 3, 1999

In recent years, local taxation authorities have reported some problems in enterprise income levying and supervising of banks. Clarification on the relevant issues after discussion is hereby as follow:

I. The income earned outside China by the banks shall be subject to enterprise income tax according to provisions of the Interim Regulations of the People's Republic of China on Enterprise Income Tax and the relevant tax laws. Taxation authority shall strengthen the levying administration of enterprise income tax of income earned outside China.

II. Enterprises established at all levels with capital raised from banks, which are approved by the State Administration of Taxation for the implementation of consolidated tax payment, including financial corporate enterprises and non-financial enterprises shall not conduct combined tax payment with the banks but shall pay for the enterprise income tax at their own localities in accordance with the provisions.

III. The items allowed to be deducted in the calculation of the taxable income amount of the banks shall be implemented according to the provisions of tax laws.
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