Notice on the applicable tax rate and tax credit of overseas income of high-tech enterprises

 

Finance and Taxation [2011] No. 47

 

Provinces, autonomous regions, municipalities directly under the Central Government, cities with separate plans, State Taxation Bureau, local taxation bureau, Xinjiang Production and Construction Corps Finance Bureau:

 

According to the relevant provisions of the "People's Republic of China Enterprise Income Tax Law" and its implementing regulations, and the "Notice of the State Administration of Taxation of the Ministry of Finance on Issues Concerning the Collection and Credit of Overseas Income Taxes for Enterprises" (Caishui [2009] No. 125), Issues related to the applicable tax rate and tax credit for overseas income are supplemented as follows:

 

I. High-tech enterprises applying for certification based on the total research and development expenses, total revenue, total sales revenue, high-tech product (service) income and other indicators related to all domestic and overseas production and operation activities can enjoy income derived from overseas. High-tech enterprise income tax preferential policies, that is, income derived from overseas can be paid at a preferential tax rate of 15%. When calculating the overseas credit limit, the total domestic and overseas taxable tax can be calculated at a preferential tax rate of 15%.

 

2. The other matters of the above-mentioned high-tech enterprises' overseas income tax credits will still be implemented in accordance with the relevant provisions of Caishui [2009] No. 125.

 

3. The high-tech enterprises referred to in this notice refer to the "Enterprise Income Tax Law of the People's Republic of China" and its implementing regulations, and the accredited institutions shall follow the "Measures for the Management of High-tech Enterprises" (Guo Ke Fa Huo [2008] No. 172) and The “Guidelines for the Management of High-tech Enterprises” (Guoke Fahuo [2008] No. 362) recognizes enterprises that have obtained high-tech enterprise certificates and are enjoying 15% preferential corporate income tax rates.

 

4. This notice shall be implemented from January 1, 2010.

 

Ministry of Finance State Administration of Taxation

 

May 31, 2011