Circular of the Ministry of Finance and the State Administration of Taxation on the Relevant Policies of Enterprises Income Taxes on the Purchase of Home-made Equipment by Foreign Funded Enterprises and Foreign Enterprises
Circular of the Ministry of Finance and the State Administration of Taxation on the Relevant Policies of Enterprises Income Taxes on the Purchase of Home-made Equipment by Foreign Funded Enterprises and Foreign Enterprises
Circular of the Ministry of Finance and the State Administration of Taxation on the Relevant Policies of Enterprises Income Taxes on the Purchase of Home-made Equipment by Foreign Funded Enterprises and Foreign Enterprises
Cai Shui [2005] No. 74
July 20, 2005
The departments (bureaus) of finance in all provinces, autonomous regions, municipalities directly under the Central Government and the cities under separate state planning, the state taxation bureaus, the local taxation bureaus and the bureau of finance in the Xinjiang Construction and Production Corps, the financial supervision commissioners' offices of the Ministry of Finance in all provinces, autonomous regions, municipalities directly under the Central Government and the cities under separate state planning:
For the relevant polices of the deduction or exemption of the enterprise income taxes for the purchase of home-made equipment by foreign-funded enterprises and foreign enterprises and the policies of the refund of enterprise income taxes for re-investment by the relevant profits, we hereby notify as follows after deliberation:
Article 1 According to the provisions of Article 9 of the Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises, as for the deduction or exemption of the enterprise income taxes for the purchase of home-made equipment by foreign-funded enterprises and foreign enterprises, the tax amount as deducted or exempted shall be calculated according to the enterprise income taxes and the local income taxes as actually collected.
Article 2 Where a foreign investor of a foreign-funded enterprise re-invests the profits got from his investment in China, and if the enterprise income tax amount as allowed to be deducted or exempted from the enterprise income tax of the foreign-funded enterprise as actually collected for the purchase of home-made equipment has already been deducted or exempted, the tax refund for re-investment shall be calculated in light of the actual burden as borne by the relevant enterprise.
......