CIRCULAR ON QUESTIONS CONCERNING HOW TO CALCULATE AND COLLECTENTERPRISE INCOME TAX RELATED TO THE REFUNDING OF EXTRA TAX PAID BYENTERPRISE WITH FOREIGN INVESTMENT AFTER CHANGE-OVER TO THE LEVY OFVALUE-ADDED TAX, CONSUMPTION TAX AND BUSINESS TAX

CIRCULAR ON QUESTIONS CONCERNING HOW TO CALCULATE AND COLLECTENTERPRISE INCOME TAX RELATED TO THE REFUNDING OF EXTRA TAX PAID BYENTERPRISE WITH FOREIGN INVESTMENT AFTER CHANGE-OVER TO THE LEVY OFVALUE-ADDED TAX, CONSUMPTION TAX AND BUSINESS TAX (State Administration of Taxation: 27 June 1994 Coded Guo Shui Fa[1994] No. 145) Whole Doc.

To the tax bureaus of various provinces, autonomous regions and municipalities, the tax bureau of various cities with independent planning and various sub-bureaus of the Offshore Oil Tax Administration: In line with the stipulations of the Decision on the Provisional Regulations of the Standing Committee of the National People's Congress Concerning the Collection of Value-Added Tax, Consumption Tax and Business Tax Applicable to Enterprise with Foreign Investment and Foreign Enterprises and the Circular of the State Administration of Taxation On Some Concrete Questions Concerning the Refunding of Extra Tax Paid by Enterprise with Foreign Investment After Change-Over to the Collection of Value- Added Tax and Consumption Tax, a document of the State Administration of Taxation Coded Guo Shui Fa [1994] No. 115, we hereby clarify the following question related to the refunding of extra tax paid by enterprise with foreign investment and how to handle tax while calculating and collecting enterprise income tax: For the refunded tax payment actually received by a enterprise with foreign investment, the extra tax payments, no matter to which year they belong, shall all be included in the enterprise's taxable income amount in the year the tax reimbursement is received, enterprise income tax is calculated and paid in accordance with related stipulations of the Income Tax Law for enterprise with foreign investment and Foreign Enterprises.