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Business Income Tax | 1. For the enterprises registered in the Experimental Zone, the assets appraisal increment is caused by the asset’s reorganization such as the external investment of non-monetary assets. The income from the transfer of non-monetary assets can be evenly included in the corresponding year's taxable income within a period of no more than 5 years, and the enterprise income tax shall be calculated and paid according to the regulations. 2. When an enterprise invests in foreign countries with non-monetary assets, it shall recognize the realization of the income from the transfer of non-monetary assets when the investment agreement comes into effect and the actual delivery of the assets is completed and the equity registration formalities are handled. When an enterprise invests in foreign countries with non-monetary assets, it shall evaluate the non-monetary assets and calculate and recognize the income from the transfer of non-monetary assets according to the balance after deducting the tax base from the fair value after evaluation. 3. When an enterprise invests in foreign countries with non-monetary assets, the tax base of its acquired equity shall be based on the original tax base of non-monetary assets, plus the transfer income of non-monetary assets included in each year, and shall be adjusted year by year. The tax base of non-monetary assets acquired by the invested enterprise can be determined by the fair value of the non-monetary assets. 4. If an enterprise transfers the above-mentioned equity or investment recovery within 5 years of its foreign investment, it shall stop implementing the deferred tax policy, and the income from the transfer of non-monetary assets that has not been included in the deferral period shall be calculated and paid the enterprise income tax once in the annual settlement of the enterprise income tax in the year of the transfer of equity or investment recovery; when calculating the income from the equity transfer, the enterprise may pay the enterprise income tax in accordance with Article 3 of this circular The first paragraph stipulates that the tax base of equity shall be adjusted in place at one time. If an enterprise cancels its foreign investment within five years, it shall stop implementing the deferred tax policy, and the income from the transfer of non-monetary assets that has not been included in the deferral period shall be calculated and paid in one lump sum when the enterprise income tax of the year in which it is closed is settled. 5. The enterprise shall, within 30 days after the investment agreement becomes effective and the actual delivery of assets is completed and the equity registration procedures are completed, the enterprise shall, with relevant information, go through the registration procedures for deferred tax payment with the competent tax authorities. The competent tax authorities shall review the submitted materials and reply the registration results to the enterprise within the prescribed time. 6. In the year when the income is recognized, the enterprise shall make corresponding account based on the project, accurately record the income from transfer of non-monetary assets that should be recognized, and explain the amount included in the current year and the amount carried forward by year in the final settlement of enterprise income tax in the corresponding year. The competent tax authority shall, while responding to the enterprise's registration results, incorporate the relevant information into the system management, and make a timely comparison between the enterprise's declaration information and the filing information. 7. When the competent tax authorities organize and carry out the follow-up management of enterprise income tax settlement, the implementation of enterprise deferred tax payment should be included in the follow-up management system, and timely included in the tax service reminder platform or risk monitoring platform for management according to the risk level. 8. The term "enterprises registered in the experimental zone" mentioned in this Circular refers to the resident enterprises registered in the pilot zone and operating in the pilot zone and implementing audit and collection. |
Individual Income Tax | 1. For the high-tech enterprises in the pilot areas to transform scientific and technological achievements, the relevant technical personnel of the enterprise shall be rewarded in the form of shares or proportion of capital contribution. If the technicians have difficulty in paying taxes at one time, they may pay individual income tax in installments after being examined and approved by the competent tax authorities, but the maximum period shall not exceed five years. 2. The term "high and new technology enterprises" as mentioned in this circular refers to the high and new technology enterprises registered in the pilot areas, subject to audit and collection, and recognized by the provincial high and new technology enterprises identification and management institutions in the pilot areas. 3. The term "enterprise related technical personnel" mentioned in this circular refers to the important technical personnel and business management personnel of the enterprise, including the following personnel： a) The technical personnel who have made outstanding contributions to the R & D and industrialization of scientific and technological achievements of enterprises, including the main person who has completed the scientific and technological achievements in key positions of enterprises, the person in charge of major development projects, the main technical personnel who have made major innovations or improvements to the leading products or core technologies and technological processes, and the research, development and transfer of scientific and technological achievements to enterprises by institutions of higher learning and scientific research institutes Main technical personnel. b) The operation and management personnel who have made outstanding contributions to the development of the enterprise include the senior management who presides over the overall production and operation of the enterprise, and the middle and senior business management personnel who are responsible for the production and operation of the main products (services) of the enterprise account for more than 50% of the main business income (or the main business profit). 4. The individual income tax shall be calculated and levied according to the current relevant policies and regulations for the equity award of technical personnel. The tax price of equity award is determined by referring to the fair market price when the equity is obtained. 5. When the technical personnel transfer the shares after obtaining the equity, the income from the transfer, that is, the part of the transfer income higher than the fair market price at the time of acquisition, shall be calculated and paid with individual income tax in accordance with the applicable provisions on collection and exemption of "income from property transfer". 6. During the period from January 1, 2012 to December 31, 2014, the technical personnel who have obtained the equity award approved by the relevant departments can enjoy the above preferential tax payment in installments. |
