Circular of the Ministry of Finance and the State Administration of Taxation on Issues concerning the Exemption of Historic Taxes Owed by Enterprises in the Old Northeast Industrial Base
Circular of the Ministry of Finance and the State Administration of Taxation on Issues concerning the Exemption of Historic Taxes Owed by Enterprises in the Old Northeast Industrial Base
Circular of the Ministry of Finance and the State Administration of Taxation on Issues concerning the Exemption of Historic Taxes Owed by Enterprises in the Old Northeast Industrial Base
Cai Shui [2006] No. 167
December 6, 2006
The financial departments (bureaus), offices of the State Administration of Taxation and Local Taxation Bureaus of Liaoning, Dalian, Jilin and Heilongjiang,
In order to implement and carry out the guidelines of Some Suggestions of the Central Committee of the Communist Party of China and the State Council regarding the Implementation of Strategies for Revitalizing Old Industrial Base in the Northeastern Region (Zhong Fa [2003] No. 11) and support the revitalization of northeastern old industrial base, it is hereby, upon the approval of the State Council, informed as follows with respect to relevant issues relating to the exemption of the tax arrears of enterprises in the northeastern old industrial base:
I. Time limit for the exemption of tax arrears
Tax arrears attributing to enterprises in the northeastern old industrial base formed prior to December 31, 1997, outstanding for payment and collection by the date of issuing the Circular and conforming to requirements as stated in the Circular shall be exempted.
II. Detailed conditions for the exemption of tax arrears
Tax arrears attributing to enterprises in the northeastern old industrial base, in case of meeting one of the following conditions, may be exempted:
1. Existing enterprises required to carry out restructuring or reorganization pursuant to national policies have carried out restructuring or reorganization in accordance with law and have provided appropriate placement for workers, yet the enterprises (existing ones and enterprises succeeding the liabilities of others) still have tax arrears formed prior to December 31, 1997.
The verification for the completion of restructuring or reorganization as well as the placement for workers of enterprises shall be subject to the determination of the people's government of the provinces (incl. cities specifically designated in the state plan, the same below) where the enterprises are located in line with the official reply of authorities with jurisdiction regarding the said restructuring or reorganization program.
2. Existing enterprises not required by the State for restructuring or reorganization still have tax arrears formed prior to December 31, 1997.
3. Enterprises shut down in line with provisions of relevant laws, regulations, rules and regulatory files or enterprises having stopped production successively for over four years (incl.) by the date of issuing the Circular due to policy adjustment or production and business etc. still have tax arrears formed prior to December 31, 1997.
4. Enterprises listed and managed as "abnormal taxpayer" for over four (incl.) years by the offices of the State Administration of Taxation or Local Taxation Bureaus with jurisdiction of the places where the enterprises were located still have tax arrears formed prior to December 31, 1997.
III. Scope of enterprises to be exempted from tax arrears
The tax arrears formed prior to December 31, 1997 for state-owned enterprises, collective enterprises, private enterprises, jointly operated enterprises, joint-stock enterprises, foreign investment enterprises and foreign enterprises as well as other enterprises and entities of all kinds of economic ownership etc.
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