Circular of the State Administration of Taxation on Issues concerning the Calculation of Taxable Income for Income Gained during the Period of Establishment of Foreign-Invested Enterprises

Circular of the State Administration of Taxation on Issues concerning the Calculation of Taxable Income for Income Gained during the Period of Establishment of Foreign-Invested Enterprises
Circular of the State Administration of Taxation on Issues concerning the Calculation of Taxable Income for Income Gained during the Period of Establishment of Foreign-Invested Enterprises

Guo Shui Fa [1995] No.140

July 24, 1995

The national tax bureaus of various provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan,

This is to specify what to do with the income tax about the non-productive income gained by a manufacturing enterprise with foreign investment during its launching, which has been recently inquired about:

In accordance with Article 4 of the Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises (hereinafter referred to as the Tax Law), the balance of non-productive income gained by a manufacturing enterprise with foreign investment during its launching deducted by the cost, charges and loss concerned, shall be deemed as taxable income at the tax rate stipulated in Articles 5 and 7 of the Tax Law.
  ......
Please consent to the LexisNexis Terms and Conditions and Privacy Policy.