s and has calulated and drawn depreciation or
amortization in accordance with the readjusted number of the account
book, or has charged to cost and expenses by other methods, the
enterprise shall, while declaring annual tax payment, make readjustment
by the following methods:
(1) Making yearly readjustments as things really are. The current cost
and expense which are counted more or less than what they should be by
the method of depreciation or amortization in each tax-paying year
resulting from the changed value of the reevaluation of assets made by
the enterprise shall be readjusted in the current cost and expense
column of the yearly tax-paying declaration form, the taxable amount of
income shall be increased or decreased correspondingly.
(2) Comprehensive readjustments. For the part of change resulting from
the reassessment of the enterprise assets, readjustments may be made to
the current cost and expense items declared for annual tax payment on an
average 10-year period basis without distinguishing the asset projects,
the taxable amount of income shall be increased or decreased
correspondingly.
The enterprise may choose either one of the above-mentioned two methods
and report to local competent tax authorities for use after receiving
approval. When declaring for annual tax payment, the enterprise shall
send related calculating materials together to local competent tax
authorities for examination and approval.
II. Questions concerning enjoying regular preferential income tax
reduction and exemption
(1) The regrouping of enterprise with foreign investment or merging with
other enterprises into shareholding enterprises. When the original
enterprise with foreign investment which have performed the procedures
for cancellation of registration with the administrative department for
industry and commerce, the newly organized shareholding enterprise which
simultaneously conform with the following conditions may enjoy regular
preferential tax reduction and exemption in accordance with the
stipulations of Article 8 of the Income Tax Law on enterprise with
foreign investment and Foreign Enterprises (hereinafter referred to as
Tax Law).
(1) The original enterprise with foreign investment has carried out tax
handling of its reassessed assets in accordance with the stipulations of
Clause (1) of Article 1 of this Circular.
(2) The original enterprise with foreign investment whose actual
operational period has not reached the operational time limit for
enjoying related regular preferential tax reduction and exemption as
stipulated in the Tax Law, but it has repaid the already exempted and
reduced enterprise income tax.
If it does not meet the above conditions, the newly organized
shareholding enterpri上一页 [1] [2] [3] 下一页
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