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The State Administration of Taxation
Circular of the State Administration of Taxation on the Issues of Foreign-related Taxation Occurred While Carrying Out the Provisions
on Taxation Policy of State High/New Technology Industry Development Zones
GuoShuiHanFa [1991] No.663
September 16, 1991
The issues of foreign-related taxation occurred while carrying out the Circular of State Council Concerning Approving the State High/New
Technology Industry Development Zones and Relevant Policies and Provisions (GuoFa [1991] No.12) and the Provisions on Tax Policy
of State High/New Technology Industry Development Zones (hereinafter referred to as the Provisions) are specified as follows:
1.
Where the Chinese-foreign equity joint ventures which are in the high/new technology industry development zones (hereafter as development
zones) approved by State Council to be established and which are determined to be high/new technology enterprises, according to the
Paragraph 4 of Article 6 of the Provisions, have difficulty paying taxes after the period of tax exemption is expired and need be
given special favor of proper reduction and exemption of tax again in a certain period, the enterprise shall file the application
and submit the report to State Administration of Taxation for approval after the local tax authorities have examined.
2.
The enterprises with foreign investment which are established in development zones and determined to be high/new technology enterprises,
the business income tax may be levied at the reduced rate of 15% since the tax year on which the date of the determination to be
high/new technology enterprises falls.
3.
Where the high/new technology industry development zones defined by State Council is in coastal economical open zone, the enterprises
with foreign investment which are determined to be high/new technology enterprises are permitted to choose one preferential treatment
of taxation in the provisions of taxation preference in economical open zones and industry development zones, but shall not overlap.
4.
Where the enterprises with foreign investment which are established in development zones and determined to be high/new technology
enterprises need accelerate the depreciation of the apparatus and facilities used for development of high/new technology or production
of high/new technology products, shall file an application, and after the check and approval of local taxation authorities, be reported,
level by level, to the State Administration of Taxation for approval.
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