Circular of the State Administration of Taxation on Issues concerning the Administration of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources

Circular of the State Administration of Taxation on Issues concerning the Administration of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources

Guo Shui Han [2009] No. 185

April 10, 2009

To the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

With a view to implementing the preferential enterprise income tax policies for comprehensive utilization of resources, we hereby notify the relevant administrative issues as follows:

I. For the purpose of this Circular, the term "preferential enterprise income tax policies for comprehensive utilization of resources" refers to that, where an enterprise utilizes the resources as listed in the Catalogue for Preferential Enterprise Income Tax for Comprehensive Utilization of Resources (2008) (hereinafter referred to as the "Catalogue") as of January 1, 2008 as its major raw materials to make products which are not restricted or prohibited by the state and are consistent with the relevant national or industrial standards, the income derived therefrom shall be calculated into the total income of the enterprise in the year at the reduced rate of 90%.

II.
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