State Administration of Taxation, Announcement on Several Tax Treatment Issues Relating to Taxable Income for Enterprise Income Tax Purposes
Clarification on the pre-tax deduction of business entertainment expenditures for the enterprise preparatory period.
Issue: June 2012
CLP Reference: 3230/12.04.24
Promulgated: 24 April 2012
Keywords (click to search):
enterprise income tax
Issued: April 24 2012
Effective: as of the tax year of 2011
Main contents: The reasonable expenses and expenditures incurred by an enterprise in connection with financing obtained by means such as the issuance of bonds, taking out of a loan and attraction of deposits of the insured shall be included as part of the relevant asset costs, provided that they satisfy capitalisation conditions. If they do not satisfy capitalisation conditions, they shall be treated as financial expenses and may be deducted before enterprise income tax as actually incurred (Article 2).
If an enterprise engages in the provision of agency services and the revenue from its main business is in the form of service charges...