State Administration of Taxation, Issues Relevant to the Follow-up Administration after Cancellation of Certain Examination and Approval Requirements in Connection with Foreign-invested Enterprise and Foreign Enterprise Income Tax Circular

Issued: October 24 2003
Effective: January 1 2003

Main contents: The Circular details the follow-up administration after the cancellation of the examination and approval requirements on standards for payment of employee wages and welfare fees, on enterprise withdrawal of bad debt reserves, on accelerated depreciation of fixed assets of Sino-foreign cooperative joint ventures, on not keeping or keeping less residual value of enterprise fixed assets, reduction of half of the enterprise income tax of the current year of export enterprises, proceeds of non-monetary asset investments of foreign-invested enterprises, further reduction from increases in technological development costs of foreign-invested enterprises, evenly incorporating large amounts of non-monetary asset donations received by enterprises into the amount of taxable income within five years, and exemption of individual income tax on overseas social insurance premiums of employees of foreign-invested enterprises and foreign enterprises.
Related legislation: Proper Handling the Follow-up Works for Items on which the Administrative Examination and Approval Requirements Have Been Adjusted Opinion; The Second Batch of Items in Respect of which the Administrative Examination and Approval Requirements are Abolished and Change of the Management of a Batch of Items Requiring Administrative Examination and Approval Decision, Mar 27 2003; PRC Foreign-invested Enterprise and Foreign Enterprise Income Tax Law Implementing Rules, Jun 30 1991, CLP 1991 No.7 p16; Tax Handling Issues on Withholding of Employee Welfare Type Fees Other Than Medical Funds, Insurance Funds and the Other Funds for Their Employees by Foreign-invested Enterprises and Foreign Enterprises Circular; Several Business Handling Questions Concerning the Thorough Implementation of the Foreign Investment Enterprise and Foreign Enterprise Income Tax Law Circular, Oct 15 1991; Several Taxation Questions Concerning Foreign Investment Enterprises Engaged in the Investment Business Circular, Jan 13 1995, CLP 1995 No.6 p12; Relevant Questions on Offsetting the Technological Development Costs of Foreign Investment Enterprises Against Their Taxable Income Circular, Sep 17 1999, CLP 1999 No.10 p9; Tax Treatment of Donations Accepted by Foreign Investment Enterprises and Foreign Enterprises Circular, Oct 18 1999 and Income Tax Handling Issues Relevant to Overseas Insurance Premiums of Employees of Foreign-invested Enterprises and Foreign Enterprises Circular