Interim Provisions of the Ministry of Finance on the Reduction and Exemption of Income Tax on Royalty of Technological Knowhow
Interim Provisions of the Ministry of Finance on the Reduction and Exemption of Income Tax on Royalty of Technological Knowhow
Interim Provisions of the Ministry of Finance on the Reduction and Exemption of Income Tax on Royalty of Technological Knowhow
December 13, 1982
In accordance with the provisions of Article 11 of the Foreign Enterprise Income Tax Law of the People's Republic of China and Article 27 of the Implementing Rules of the Foreign Enterprise Income Tax Law of the People's Republic of China, foreign companies, enterprises and other economic organizations with on office in China and that receive royalties for providing technological knowhow to be used in China are subject to the income tax at a rate of 20 percent (i.e., pre-withheld income tax). For the purpose of the State policy of importing technology and encourage foreign companies, enterprises and other economic organizations to provide China with new technologies, new techniques and advanced scientific and technological achievements, preferential taxation treatment will be granted to royalties for technological knowhow in the form of income tax reduction or exemption. Specific provisions are as follows:
I. The following types of royalties for technological knowhow (including the fees charged for blueprints and information, technical service fees and personnel training fees related to a transfer of the right to use technological knowhow; the same hereinafter) may be subject to income tax at the reduced rate of ten percent and, when the technology is advanced and the conditions preferential, may be exempted from income tax.
(I) Royalties received for the provision of technological knowhow to develop farming, forestry, fishery and animal husbandry, including: technological knowhow provided to improve soil and grasslands, develop barren hills, and fully utilize natural resources; technological knowhow for new animal and plant species and for the production of highly effective and low-toxic pesticides; technological knowhow such as that provided to advance the scientific control of farming, forestry, fishery and animal husbandry, to preserve ecological balance and to strengthen to the control and prevention of natural calamities;
(II) Royalties received for the provision to Chinese side of technological knowhow to conduct scientific research and scientific experiment by Chinese science academies, colleges and universities and other scientific research units or for the purposes of conducting scientific research in cooperation with Chinese scientific research entities;
(III) Royalties received for the provision of technological knowhow for key construction projects of China to develop energy sources and expand communications and transportation;
(IV)Royalties received for the provision of technological knowhow with respect to energy saving and prevention and control of environmental pollution;
(V)Royalties received for the provision of the following types of technological knowhow in order to develop important technological fields of China:
1.
......
December 13, 1982
In accordance with the provisions of Article 11 of the Foreign Enterprise Income Tax Law of the People's Republic of China and Article 27 of the Implementing Rules of the Foreign Enterprise Income Tax Law of the People's Republic of China, foreign companies, enterprises and other economic organizations with on office in China and that receive royalties for providing technological knowhow to be used in China are subject to the income tax at a rate of 20 percent (i.e., pre-withheld income tax). For the purpose of the State policy of importing technology and encourage foreign companies, enterprises and other economic organizations to provide China with new technologies, new techniques and advanced scientific and technological achievements, preferential taxation treatment will be granted to royalties for technological knowhow in the form of income tax reduction or exemption. Specific provisions are as follows:
I. The following types of royalties for technological knowhow (including the fees charged for blueprints and information, technical service fees and personnel training fees related to a transfer of the right to use technological knowhow; the same hereinafter) may be subject to income tax at the reduced rate of ten percent and, when the technology is advanced and the conditions preferential, may be exempted from income tax.
(I) Royalties received for the provision of technological knowhow to develop farming, forestry, fishery and animal husbandry, including: technological knowhow provided to improve soil and grasslands, develop barren hills, and fully utilize natural resources; technological knowhow for new animal and plant species and for the production of highly effective and low-toxic pesticides; technological knowhow such as that provided to advance the scientific control of farming, forestry, fishery and animal husbandry, to preserve ecological balance and to strengthen to the control and prevention of natural calamities;
(II) Royalties received for the provision to Chinese side of technological knowhow to conduct scientific research and scientific experiment by Chinese science academies, colleges and universities and other scientific research units or for the purposes of conducting scientific research in cooperation with Chinese scientific research entities;
(III) Royalties received for the provision of technological knowhow for key construction projects of China to develop energy sources and expand communications and transportation;
(IV)Royalties received for the provision of technological knowhow with respect to energy saving and prevention and control of environmental pollution;
(V)Royalties received for the provision of the following types of technological knowhow in order to develop important technological fields of China:
1.
......