Reply of the State Administration of Taxation on the Determination of the Production Value of the Exported Products of Foreign-Invested Export-Oriented Enterprises

Reply of the State Administration of Taxation on the Determination of the Production Value of the Exported Products of Foreign-Invested Export-Oriented Enterprises
Reply of the State Administration of Taxation on the Determination of the Production Value of the Exported Products of Foreign-Invested Export-Oriented Enterprises

Guo Shui Han Fa [1995] No. 645

December 18, 1995

The state tax bureau of Dalian,

Your Request for the Determination of the Production Value of the Exported Products of Export-oriented Enterprises (Da Guo Shui Fa [1995] NO.217) has been received. Under the stipulations of Item 7 of Article 75 of the Implementing Rules of the Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises, in the event that the value of the products exported in that year accounts for no less than 70% of their total output value for that year, foreign-invested export enterprises may pay their enterprise income taxes in half under the tax laws upon the expiration of their legal tax exemption and reduction period.
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