End to Tax Exemption for Restricted Listed Shares

Posted by Shi Zhiqun on January 28, 2010 under Corporate Tax Planning, Individual Income Tax, Tax Incentives | Be the First to Comment

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.