Page 10 - The South China Business Journal
P. 10
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Implementation of China's trade in services has burgeoned in
recent years. A considerable proportion
CIT Policies for of it relates to technological innovation, an
Advanced Technology increasingly important factor that drives the
Service Enterprises growth of trade in services.
Fur&thBerusPinroemsosted On November 2nd, 2017, the Notice on
Promoting the Implementation of Corporate
Environment Income Tax Policies for Advanced Technology
Service Enterprises Nationwide was issued,
for Foreign Investment rendering the preferential tax policies
applicable nationwide to more enterprises of
Constantly Improved the specified type.
8 AmCham South China According to the Notice, the further
promotion of implementation of these tax
policies aims at fulfilling the requirements
of the Notice of the State Council on Several
Measures for Promoting the Growth of Foreign
Investment (Guo Fa [2017] No. 39), i.e. the "22
Measures", which was issued in order to spur
foreign investment and to intensify efforts in
the supply-side structural reform.
Art. No. 79 specifies that the
following preferential policies
for corporate income tax will be
implemented nationwide as of January
1, 2017:
1. For recognized advanced technology service
enterprises, the corporate income tax shall be
levied at a reduced rate of 15% (25% for normal
enterprises); and
2. Education expenses incurred by employees
of a recognized advanced technology service
enterprise that do not exceed 8% (2.5% for
normal enterprises) of the said enterprise's
total salaries are allowed to be deducted
from the calculation of taxable income;
while the part in excess of 8% of the total
salaries is allowed to be carried forward to the
subsequent years for the purposes of deduction
in the calculation of taxable income.
Art. No.79 specifies that an advanced
technology service enterprise that
may enjoy the preferential corporate
income tax policies set forth in
Article 1 of this Notice shall meet the
following conditions concurrently:
1. It is registered within the territory of China
(excluding Hong Kong, Macao and Taiwan);
Implementation of China's trade in services has burgeoned in
recent years. A considerable proportion
CIT Policies for of it relates to technological innovation, an
Advanced Technology increasingly important factor that drives the
Service Enterprises growth of trade in services.
Fur&thBerusPinroemsosted On November 2nd, 2017, the Notice on
Promoting the Implementation of Corporate
Environment Income Tax Policies for Advanced Technology
Service Enterprises Nationwide was issued,
for Foreign Investment rendering the preferential tax policies
applicable nationwide to more enterprises of
Constantly Improved the specified type.
8 AmCham South China According to the Notice, the further
promotion of implementation of these tax
policies aims at fulfilling the requirements
of the Notice of the State Council on Several
Measures for Promoting the Growth of Foreign
Investment (Guo Fa [2017] No. 39), i.e. the "22
Measures", which was issued in order to spur
foreign investment and to intensify efforts in
the supply-side structural reform.
Art. No. 79 specifies that the
following preferential policies
for corporate income tax will be
implemented nationwide as of January
1, 2017:
1. For recognized advanced technology service
enterprises, the corporate income tax shall be
levied at a reduced rate of 15% (25% for normal
enterprises); and
2. Education expenses incurred by employees
of a recognized advanced technology service
enterprise that do not exceed 8% (2.5% for
normal enterprises) of the said enterprise's
total salaries are allowed to be deducted
from the calculation of taxable income;
while the part in excess of 8% of the total
salaries is allowed to be carried forward to the
subsequent years for the purposes of deduction
in the calculation of taxable income.
Art. No.79 specifies that an advanced
technology service enterprise that
may enjoy the preferential corporate
income tax policies set forth in
Article 1 of this Notice shall meet the
following conditions concurrently:
1. It is registered within the territory of China
(excluding Hong Kong, Macao and Taiwan);
