CMS, China | Chinese Tax Regulation Update | December 2021





CMS, China

Dear Sir or Madam,

Please find enclosed our update on the latest developments on Chinese Tax Law.

Kind regards,
CMS, China

Circular
Number
Issuance
Date
Effective
Date
Topic What is new?
Announcement [2021] No. 36 jointly released by the State Administration of Taxation (“SAT”), the Ministry of Finance, the National Development and Reform Commission and the Ministry of Ecology and Environment 2021-12-16 2021-01-01 Catalogue of Environmental Protection, Energy Conservation and Water Saving Projects Eligible for Preferential Corporate Income Tax (“CIT”) Treatments (“Catalogue I”) and Catalogue of Projects of Comprehensive Utilization of Resources Eligible for Preferential CIT Treatments (“Catalogue II”)

Catalogue I and Catalogue II have been updated into 2021 editions and are attached to the Announcement. The Announcement also stipulates that the enterprises qualifying for the old versions of the two catalogues can still enjoy the preferential CIT treatments during the transitional periods:

An enterprise engaged in any project falling under the old version of Catalogue I can continue enjoying the preferential CIT treatment till its expiration, if the enterprise has already started enjoying the preferential CIT treatment by 31 December 2021.
   
An enterprise engaged in any project falling under the updated Catalogue I can continue enjoying the preferential CIT treatment till its expiration, if the enterprise has already obtained the first revenue through its production and operation by 31 December 2020.
   
An enterprise engaged in any project falling under the old version of Catalogue II whilst falling out of the updated Catalogue II can continue enjoying the preferential CIT treatment till 31 December 2021.
Announcement [2021] No. 32 jointly released by the SAT and the Ministry of Industry and Information Technology (“MIIT”) 2021-12-14 2021-12-14

Catalogue of Vehicle Purchase Tax (“VPT”)-exempted Special Operation Vehicles for Non-transportation Purposes and Equipped with Fixtures (Batch Four) (“Catalogue”)

The Catalogue is promulgated in the Announcement. A taxpayer can apply with the competent tax authority for VPT exemption after purchasing a qualified vehicle listed in the Catalogue. The MIIT shall verify the tax-free mark in the electronic information uploaded by the applicant through the system and pass the information to the SAT upon verification. The tax authorities shall grant the VPT exemption based on the tax-free mark verified by the MIIT and other documents required for VPT filing.

This information is provided for general information purposes only and does not constitute legal or professional advice. Copyright by CMS, China.

For further information, please contact:

Gilbert Shen
Counsel
Head of Tax Practice Area Group
CMS, China
T
+86 21 6289 6363

F
+86 21 6289 0731
E
gilbert.shen@cmslegal.cn
Sherry Huang
Junior Tax Consultant
CMS, China

T +86 21 6289 6363

F +86 21 6289 0731
E sherry.huang@cmslegal.cn

 


This information is provided for general information purposes only and does not constitute legal or professional advice. Copyright by CMS, China.

CMS, China
“CMS, China” should be understood to mean the representative offices in Mainland China of CMS Cameron McKenna Nabarro Olswang LLP, CMS Francis Lefebvre Avocats and CMS Hasche Sigle, working together. CMS, China is a member of CMS Legal Services EEIG, a European Economic Interest Grouping that coordinates an organisation of independent member firms. CMS Legal Services EEIG provides no client services. Such services are solely provided by the member firms in their respective jurisdictions.

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