This circular of the Ministry of Finance stipulates the reduction of business income tax for newly established production units facing difficulties in business operations. The document specifies that the final deadline for submitting applications to reduce taxes is March 31, 2001.
适用范围
Provincial and centrally-administered city Tax Departments and newly established production units
要点
- Newly established production units encountering difficulties in production and product sales are eligible for a reduction of 50% of business income tax for one year from the month of revenue generation (Point 3.c, Section I, Part D Circular No. 97/TC-TCT)
- Production units facing further difficulties after the first year of tax reduction due to losses will continue to be eligible for a tax reduction, but not exceeding 50% of the tax payable (Point 3.c, Section I, Part D Circular No. 97/TC-TCT)
- Applications for business income tax reduction submitted to the tax authority before March 31, 2001 will be considered and a decision on tax reduction will be issued
- Applications submitted after March 31, 2001 will not be processed
🌐 本文件的社会影响
- Newly established enterprises will benefit from reduced business income tax during initial difficult periods
- Tax authorities have additional work to review applications and issue decisions regarding the reduction of taxes for newly established production units
❓ 常见问题
Can newly established enterprises facing difficulties receive a reduction in business income tax?
Yes, according to Point 3.c, Section I, Part D Circular No. 97/TC-TCT, newly established production units encountering significant difficulties in production and product sales will be eligible for a reduction of 50% of business income tax for one year from the month of revenue generation.
What is the final deadline to submit an application for tax reduction?
Applications for tax reduction must be submitted to the tax authority before March 31, 2001 (based on postmark).
If a business incurs losses in the year following the first year of tax reduction, can it continue to apply for further tax reductions?
Production units facing difficulties and incurring losses in the year following the first year of tax reduction will continue to be eligible for tax reduction, but not exceeding 50% of the tax payable.
What happens if an application for tax reduction is submitted after March 31, 2001?
Applications for tax reduction submitted after March 31, 2001 will not be processed.
When does this document take effect?
This document took effect from the date of issuance, which is January 11, 2001.
全文
LETTER
OF THE MINISTRY OF FINANCE NUMBER 340/TC-TCT DATED FEBRUARY 11, 2001
REGARDING REDUCTION OF BUSINESS INCOME TAX
RESPECTED: PROVINCE AND CITY DIRECTORATES OF TAXATION UNDER THE CENTRAL GOVERNMENT
The Ministry of Finance has received proposals from several enterprises regarding the consideration for reduction of business income tax for newly established production facilities. Regarding this matter, the Ministry of Finance provides the following opinion:
Pursuant to Point 3.c Section I Part D Circular No. 97/TC-TCT dated December 30, 1995 of the Ministry of Finance: Newly established production facilities encountering difficulties in production and product sales, as well as debt repayment for investment loans are eligible for a reduction of 50% of business income tax for one year starting from the month with revenue; if such facilities continue to face significant difficulties in the following year after receiving tax reductions and incur losses, they may be considered for further tax reductions corresponding to their losses after applying other measures but not exceeding 50% of the tax payable.
Pursuant to Article 28: "The Law on Value-Added Tax takes effect from January 1, 1999. The Business Income Tax Law and any provisions regarding business income tax in other legal documents are abolished as of the date when the Law on Value-Added Tax comes into force."
Based on the above regulations, to resolve this matter definitively and uniformly for the consideration of reduction of business income tax for production facilities, the Ministry of Finance guides the implementation of the reduction of business income tax for newly established production facilities as stipulated in Circular No. 97/TC-TCT mentioned above as follows:
In cases where production facilities have submitted applications for reduction of business income tax under the category of newly established production facilities to the tax authority before March 31, 2001 (based on postmark), the tax authority shall issue a decision to reduce business income tax for such production facilities. Applications submitted after March 31, 2001 will not be considered by the tax authority.
The Ministry of Finance hereby informs the Provincial and City Directorates of Taxation under the Central Government to take note and guide their units in implementation.
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