| Two Departments Announced Preferential Taxation Policies of the Earthquake Relief and Reconstruction |
| 2008-05-21 08:56 |
| From:Two Departments Article type:Reproduced |
 On May 19, Ministry of Finance of People’s Republic of China and State Administration of Taxation issued preferential taxation policies related to the earthquake relief and reconstruction, requiring tax authorities at all levels to consider supporting earthquake relief and reconstruction as a very urgent and important task at present, taking effective measures to implement the relevant preferential taxation policies of the existing tax laws and regulations that can be applied to earthquake relief and reconstruction. According to the announcement jointly issued by two departments, the preferential taxation policies related to the earthquake relief and reconstruction mainly involve corporate income tax, personal income tax, house property tax, deed tax, resources tax, urban land-use tax, vehicle & vessel tax and import & export tax, as follows: Corporate income tax: the announcement points out that the actual property loss of the enterprise caused by earthquake shall be deducted in the calculation of taxable income; at the same time, the expenditure of charitable donations of enterprise shall be deducted when calculating the amount of taxable income according to the law on corporate income tax and its regulations of implementation. Personal income tax: personal income tax of the individual who experience serious losses caused by earthquake could be reduced. The magnitude and duration of the specific reduction shall be determined by the governments of provinces, autonomous regions and municipalities in affected areas. The exemption of personal income tax will be implemented to the personal pensions and alms in affected areas. The donation of personal income to the earthquake-stricken area shall be deducted from taxable income in accordance with the law on personal income tax. House property tax: the damage house that cannot live or use and the dangerous house identified by departments concerned can be exempted from house property tax after stopping using. House being overhauled and stopped using in more than half a year shall be exempted from house property tax during the overhauling; the exemption shall be calculated and deducted by the taxpayer when applying to pay house property tax, leaving corresponding notes on annexes or remarks of the application table. Deed tax: the deed tax of the people who loss house re-purchase of house due to the earthquake disaster shall be reduced or exempted, according to the specific relief policies enacted by the provincial people’s governments in affected areas. Resources tax: the resources tax of the person who suffers serious losses in the processes of exploitation or production of the taxable products during the earthquake shall be reduced or exempted according to the decision of People’s Government of provinces, autonomous regions and municipalities in the disaster areas. Urban land-use tax: the taxpayers experience serious losses caused by earthquake who have difficulties in paying taxes could apply for regular exemption of urban land-use tax according to law. Vehicle & vessel tax: the taxpayer who owns the duty-paid vehicle or vessel demolished by the earthquake could apply for the refund from the month of demolishing or missing to the end of this year. Import & export tax: the import tax of the donated materials provided by foreign governments, civil society organizations, enterprises and individuals to the disaster areas, including food, daily necessities, medicines and rescue tools, shall be exempted. In addition, the announcement also pointed out that apart from these taxes listed above, the existing tax laws and other regulations applicable to the earthquake relief and reconstruction should also be carefully implemented by government of all levels. |
| (Source: English Site of Department of Foreign Investment Administration) |
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