Laws of the People's Republic of China

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning Enjoying the Preferential Taxation Policy of "the Two Intensive Enterprises" by Enterprises with Foreign Investment

GuoShuiFa [1995]No.139

July 21, 1995

The state tax bureaus of all provinces, autonomous regions, municipalities directly under the Central Government, municipalities separately listed on the State plan:

According to Article 73 of the Rules for the Implementation of the Income Tax Law of the People's Republic of China on Enterprises with Foreign Investment and Foreign Enterprises (hereinafter referred to as the Rules), the specification of issues concerning the productive enterprises which are located in the zones specified by the State Council and which involve in technology-intensive and knowledge-intensive projects (hereinafter referred to as the two intensive enterprises) to pay the business income tax by tax rate reduced to 15% is as follows:

1.

"The two intensive enterprises" shall be determined according to the standard of high/new technology enterprises set out by the Commission of Science and Technology. During the process of execution, the enterprises shall file the application and report to competent taxation departments of province level for examination and approval after the issuance of certificate of check and approval of the Science and Technology Commission of province level, and the taxation departments of province level, satisfied in check, report to the State Administration of Taxation for ratification.

2.

According to the provision of the Article 73 of the Rules, "the two intensive enterprises" may enjoy the relevant taxation preference after they pass on to different levers for report to the State Administration of Taxation for examination and approval, and every local taxation authorities shall not examine and approve "the two intensive enterprises" by themselves.