Notice of the State Council on the Implementation of Transitional Preferential Policies for Enterprise Income Tax
The people’s governments of provinces, autonomous regions, and municipalities directly under the Central Government, all ministries and commissions of the State Council, and all agencies directly under the State Council:
“Enterprise Income Tax Law of the People’s Republic of China” (hereinafter referred to as the new tax law) and “Regulations on the Implementation of the Enterprise Income Tax Law of the People’s Republic of China” (hereinafter referred to as the Implementing Regulations) will come into effect on January 1, 2019. According to the provisions of Article 57 of the New Tax Law, the following is notified on the transition issues of corporate income tax preferential policies:
1. Transition measures for corporate tax preferences approved before the promulgation of the new tax law
Enterprises shall comply with the original tax laws, administrative regulations and The preferential corporate income tax policies stipulated in the effective documents of administrative regulations will be transitioned according to the following methods:
Starting from January 1, 2019, enterprises that originally enjoyed the preferential policies of low tax rates will gradually transition to the preferential policies of low tax rates within 5 years after the implementation of the new tax law. statutory tax rate. Among them: enterprises that enjoy a corporate income tax rate of 15% will be subject to a tax rate of 18% in 2019, a tax rate of 20% in 2019, a tax rate of 22% in 2010, a tax rate of 24% in 2011, and a tax rate of 25% in 2012. ; Enterprises that were originally subject to a 24% tax rate will be subject to a 25% tax rate from 2019.
Starting from January 1, 2019, enterprises that originally enjoyed regular tax reductions and exemptions such as “two exemptions and three years of half reduction” and “five years of exemption and five years of half reduction” for corporate income tax will continue to follow the original tax laws and administrative regulations after the implementation of the new tax law. The preferential measures and years stipulated in regulations and relevant documents can be enjoyed until the expiration of the period, but if the tax preferential treatment has not yet been enjoyed because there is no profit, the preferential period will be calculated from 2019.
Enterprises that enjoy the above-mentioned transitional preferential policies refer to enterprises registered and established by industrial and commercial registration authorities before March 16, 2007; the projects and scope of transitional preferential policies are based on the “Table for the Implementation of Transitional Preferential Policies for Enterprise Income Tax” ( (See attached table).
2. Continue to implement preferential tax policies for the development of the western region
In accordance with the spirit of the relevant documents of the State Council on the implementation of the development of the western region, the Ministry of Finance, the State Administration of Taxation and the General Administration of Customs jointly issued the ” The preferential corporate income tax policies for the Western Development as stipulated in the Notice on Preferential Tax Policies for the Development of the Western Region (Finance and Taxation [2001] No. 202) will continue to be implemented.
3. Other provisions for the implementation of transitional preferential corporate tax policies
Enterprises that enjoy transitional preferential corporate income tax policies should calculate their taxable income in accordance with the provisions on income and deductions in the new tax law and implementation regulations, and calculate their taxable income in accordance with this notice Some provisions are calculated to enjoy tax benefits.
If there is an overlap between the transitional preferential policies for corporate income tax and the preferential policies stipulated in the new tax law and implementation regulations, the enterprise shall choose the preferential policy implementation, and shall not enjoy it in a superimposed manner, and once selected, it shall not be changed.
Attachment: Table for the Implementation of Transitional Preferential Policies for Enterprise Income Tax
The State Council
December 26, 2007 AASDFERHYTJTI
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