发文单位：财政部 中华人民共和国财政部

发布日期：1986-10-6

执行日期：1986-10-6

REPLY OF THE STATE COUNCIL TO THE REPORT SUBMITTED BY THE MINISTRYOF FINANCE REQUESTING THE INSTRUCTION ON THE REDUCTION OF THE APPRAISEDAND SPECIFIED RATE OF PROFIT FOR TAXATION ON THE RESIDENT REPRESENTATIVEOFFICES OF FOREIGN ENTERPR

ISES

(September 29, 1986)

Important Notice:

This English document is coming from the "LAWS AND REGULATIONS OF THE

PEOPLE'S REPUBLIC OF CHINA GOVERNING FOREIGN-RELATED MATTERS" (1991.7)

which is compiled by the Brueau of Legislative Affairs of the State

Council of the People's Republic of China, and is published by the China

Legal System Publishing House.

In case of discrepancy, the original version in Chinese shall prevail.

Whole Document

REPLY OF THE STATE COUNCIL TO THE REPORT SUBMITTED BY THE MINISTRY

OF FINANCE REQUESTING THE INSTRUCTION ON THE REDUCTION OF THE APPRAISED

AND SPECIFIED RATE OF PROFIT FOR TAXATION ON THE RESIDENT REPRESENTATIVE

OFFICES OF FOREIGN ENTERPRISES

(September 29, 1986)

The State Council hereby approves the following amendment to the Interim

Provisions of the Ministry of Finance of the People's Republic of China

concerning the Imposition of Consolidated Industrial and Commercial Tax

and Enterprise Income Tax on the Resident Representative Offices of

Foreign Enterprises: The provisions in Article 4 which read, "tax shall

...... be calculated and determined on the basis of an appraised and

specified rate of profit, provisionally determined to be 15% of the amount

of business revenue", shall be amended as follows: "tax shall ...... be

calculated and determined on the basis of an appraised and specified rate

of profit, provisionally determined to be 10% of the amount of business

revenue". The aforesaid amendment shall be announced by your Ministry, and

the amendment shall become effective as of October 1, 1986.

Appendix:

CIRCULAR OF THE MINISTRY OF FINANCE CONCERNING THE REDUCTION OF THE

APPRAISED AND SPECIFIED RATE OF PROFIT FOR TAXATION ON THE RESIDENT

REPRESENTATIVE OFFICES OF FOREIGN ENTERPRISES

(October 6, 1986)

With the approval of the State Council, this Ministry promulgated, on May

15, 1985, Interim Provisions Concerning the Imposition of Consolidated

Industrial and Commercial Tax and Enterprise Income Tax on the Resident

Representative Offices of Foreign Enterprises, and Article 4 of these

Provisions stipulates "in respect of the assessment of enterprise income

tax, except for those cases in which accurate cost and expense vouchers

can be provided and where the correct amount of tax can be calculated, tax

shall, in accordance with the provisions of Article 24 of the Rules for

the Implementation of the Income Tax Law of the People's Republic of China

for Foreign Enterprises, be calculated and determined on the basis of an

appraised and specified rate of profit, provisionally determined to be 15%

of the amount of business revenue." In order to further encourage the

aforesaid representative offices to expand business operations, and in

consideration of the actual condition of the differences in profit rates

between the representative offices, it is decided, with the approval of

the State Council, to reduce, for the benefit of the resident

representative offices, the appraised and specified rate of profit from

15% to 10%.

This Provision shall become effective as of October 1, 1986.