New Income Tax Regulations in Enterprise Restructuring

On June 21 2000, the State Administration of Taxation issued the State Administration of Taxation, Income Tax Questions Relevant to Enterprise Merger and Division Circular (the Circular), which provides the principles to implement its Income Tax in Enterprise Restructuring Provisional Rules, made on June 24 1998 (the Rules). Together, the Circular and the Rules set out various ordinary and preferential tax treatments for enterprise restructuring.