May 31 2018
The State Administration of Taxation recently issued the revised editions of the Measures for the Handling of Preferential Policies on Corporate Income Tax, and the Catalogue on the Management of Preferential Items on Corporate Income Tax (2017 Edition).
According to the revised documents, corporate taxpayers should confirm by themselves whether they are eligible to enjoy the preferential tax policies, make tax declarations and present relevant documents. Taxpayers no longer have to make registration before making tax declarations and claiming tax benefits, and they should keep relevant business records and tax documents to be subject to future examinations by tax authorities.
The revised regulations apply to the handling of preferential tax items in the 2017 fiscal year and future years. When a company prepares to pay corporate income tax for 2017, it no longer has to make registrations if it's eligible to claim tax benefits.
May 31 2018
The Ministry of Finance, the State Administration of Taxation, the Ministry of Commerce, the Ministry of Science and Technology and the National Development and Reform Commission recently issued the Circular about Expanding the Corporate Income Tax Policy on Technology-advanced Service Companies at Pilot Regions for Innovative Development of Service Trade to Nationwide.
According to the circular, technology-advanced service trade companies would pay corporate income tax at a lower rate of 15% starting from January 1, 2018.
Service trade companies must meet certain conditions specified in the Scope of Business Activities for Technology-advanced Service Companies (Service Trade) to be eligible to enjoy the favorable tax policy.
May 31 2018
China will further open up its service sector by expanding the pilot program for the innovative development of service trade, the State Council decided at an executive meeting chaired by Premier Li Keqiang on May 23, 2018.
It was decided at the meeting that the pilot program will be rolled out in 17 areas from July 1, 2018, to June 30, 2020, for the innovative development of trade in services. A series of opening-up measures will be piloted in the 17 places, covering telecommunications, tourism, engineering consulting, finance and legal services. Access mechanisms for trade in services on cross-border delivery and overseas consumption will be explored and refined, while restrictions will be gradually lifted or eased. Trade in services in such areas as R&D and design, inspection and testing, international settlement and exhibition will be expanded. Tax exemption policies will be made available for service exports, and eligible exporters can enjoy zero tax rates. Exports of emerging services that are guided by Internet Plus will be encouraged.
May 31 2018
The Ministry of Finance and the State Administration of Taxation recently issued the Circular about Tax deductible Policy for Staff Education Expenses, effective from January 1, 2018.
According to the circular, if an enterprise's staff education expenses are not higher than 8% of total wages in a year, it can deduct the expenses when calculating its taxable income on corporate income tax, and additional expenses beyond the 8% can be carried over to future tax years.