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Regulation on the treatment for foreign-invested enterprise with less than 25% foreign capital
BY 2004-03-18 14:30:29

Sate Administration of Taxation regulated the taxation issues of foreign-invested enterprises and foreign enterprises relocation compensation income as follows:

1. If the enterprise buys or reconstruct new asset with the same or similar characteristics or usage as before, the compensation income should be added to the net disposal income (the balance of proceeds from disposal of fixed assets, after deduction of undepreciated amount or the salvage value and handling fees), and offset the cost of the reconstructed asset.

2. If the enterprise doesn''t buy or reconstruct new asset with the same or similar characteristics or usage, according to article 44 of Rules for the Implementation of the Income Tax Law of the People''s Republic of China for Enterprises with Foreign Investment and foreign enterprises'', the compensation income shall be added to the proceeds from the disposal of fised assets.

The balance of this total income shall, after deduction of the salvage value and handling fees, be entered into the profit and loss account for current year, and included in taxable income.

2003-04-18
tances regulated by State Council.
Please execute it accordingly

(Editor:) (From:dalian.gov.cn)
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