the Ministry of Finance, the State Administration of Taxation Circular of the Ministry of Finance and the State Administration of Taxation on the Issue Concerning Pre-income-tax Deduction of the Cai Shui [2005] No. 136 The public finance departments (bureaus), bureaus of state taxation and those of local taxation of all provinces, autonomous regions, With a view to effectively preventing and eliminating financial risks, maintaining financial stability, and guaranteeing the benefits I. The insurance guarantee funds paid by insurance companies in accordance with the following provisions can be deducted before taxation 1. As for the property insurance, accidental injury insurance or short-term health insurance, the amount deductible may not exceed 1% 2. As for long-term life insurance with a guaranteed interest rate or long-term health insurance, the amount deductible may not exceed 3. As for long-term life insurance without a guaranteed interest rate, the amount deductible may not exceed 0.05% of the retention premium; 4. As for other insurance products, the amount deductible may not exceed the proportions as provided by the CIRC. II. Where an insurance company is under any of the following circumstances, the insurance guarantee funds it has paid may not be deducted 1. The balance of the insurance guarantee funds of a property insurance company, comprehensive reinsurance company or property reinsurance 2. The balance of the insurance guarantee funds of a life insurance company, health insurance company or life reinsurance company reaches III. This Circular shall go into effect as of January 1, 2005. Paragraph 2 of Article 12 of the “Circular of the State Administration the Ministry of Finance the State Administration of Taxation September 17, 2005 |
the Ministry of Finance, the State Administration of Taxation
2005-09-17