Circular of the State Administration of Taxation on Tax Convergence Issues Concerning Enterprise Income Tax

Circular of the State Administration of Taxation on Tax Convergence Issues Concerning Enterprise Income Tax

Guo Shui Han [2009] No. 98

February 27, 2009

Offices of the State Administration of Taxation of all provinces, autonomous regions, municipalities directly under the Central Government and cities under separate state planning, local taxation bureaus,

The Law of the People's Republic of China on Enterprise Income Tax (hereinafter referred to as the New Tax Law) and the Implementation Regulations thereof (hereinafter Implementation Regulations) shall take effect as of January 1, 2008. According to Article 60 of the New Tax Law, the Income Tax Law of the People's Republic of China on Foreign-invested Enterprises and Foreign Enterprises and the Interim Regulations of the People's Republic of China on Enterprise Income Tax (hereinafter Original Tax Law) shall be annulled on the same date. For the purpose of facilitating local settlement work, the tax convergence issues occurring to enterprises prior to the implementation of the New Tax Law are hereby defined as follows:

Article 1 On Handling the Estimated Net Residual Value and Depreciable Life of Purchased Fixed Assets
As for fixed assets put into use before implementation of the New Tax Law, where the enterprise has estimated the net residual value and accrued the depreciation, no adjustment shall be made.
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