Posted by Shi Zhiqun on January 28, 2010 under Corporate Tax Planning, Individual Income Tax, Tax Incentives | 
On 17 January 2010 the State Administration of Taxation issued Guoshuihan [2010] 9 providing clarification on the VAT tax rebate for R&D enterprises.
From 1 July 2009 to 31 December 2010, domestic and foreign-funded R & D institutions or centres will be entitled to a full refund on value-added tax when purchasing Chinese manufactured equipments. Whether a particular transactions falls within the timeframe will depend upon the timing of the VAT invoice.
This is China’s latest round of tax concessions aimed to encourage and promote scientific and technological development. This is favorable news to foreign-funded R & D institutions or centres. Other tax concessions encouraging technological development include the enterprise income tax concessions for high tech enterprises and the business tax exemption on technology transfers.
Posted by Matthew on January 11, 2010 under China Tax, Tax Incentives |
In a notice that was published on the State Administration of Taxation (SAT) website last week, the SAT and Ministry of Commerce (MOFCOM) have continued to relieve taxes in certain circumstances with respect to universities. Caishui [2009]155 provides as follows:
- That apartments owned by universities for student accomodation will not be subject to property taxes;
- That lease agreements signed by universities and their students in respect of student accomodation will not be subject to stamp duty;
- Fees charged to students for student accomodation will not be subject to sales tax;
- No sales tax will be imposed upon university dining facilities.
Hwuason is supportive of this continuing concession for the education sector.
Posted by Li Wei on December 16, 2009 under Tax Incentives |
At the end of 2008 the State Council, in order to cushion the impact of financial crises, especially the impact on the real estate market, adjusted the business tax exemption period for housing transfers from 2 years to 5 years. However, the State Council has recently declared that the housing transfer business tax exemption period will change back to 2 years.
