‘Income deduction’ refers to a preferential tax measure that allows income from certain business activities to be reduced by a certain proportion. There are 5 preferential situations listed as following:
Comprehensive utilization of resources
According to Chinese tax law, if sales income obtained from products that not restricted or prohibited by Government and conform to relevant national & industrial standards with resources specified in Preferential Catalogue of Enterprise Income Tax for Comprehensive Utilization of Resources as the main raw material, it be accounted into total income of current year by 90%.
Financial institutions provide microcredit services for farmers
According to Chinese tax law, from 1 January 2017 to 31 December 2023, interest income obtained by financial institutions from microcredit for farmers shall be accounted into total income by 90% in taxable income computation.
Insurance enterprise provide services for planting and breeding industry
According to Chinese tax law, from 1 January 2017 to 31 December 2023, insurance income obtained by insurance company from services for planting and breeding industry shall be accounted into total income by 90% in taxable income computation.
Microfinance company provide small loan to farmer
According to Chinese tax law, from 1 January 2017 to 31 December 2023, interest income from small loan for farmers that obtained by microfinance company established with the approval of provincial finance administration departments (financial office, financial bureau, etc.) shall be accounted into total income by 90% in taxable income computation.
Corporate investor holds railway bonds
Railway bonds refer to the bonds issued and repaid by China Railway Corporation, including China railway construction bonds, medium-term notes, short-term financing bonds and other debt financing instruments. Corporate Income Tax of interest income will be halved for corporate investors holding railway bonds issued in 2019-2023.
KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advice and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
Disclaimer
All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.
‘Income deduction’ refers to a preferential tax measure that allows income from certain business activities to be reduced by a certain proportion. There are 5 preferential situations listed as following: Comprehensive utilization of resources. Financial institutions provide microcredit services for farmers. Insurance enterprise provide services for planting and breeding industry
Carrying out commercial or industrial activities in Macau comes with certain tax obligations. The major obligations affecting all businesses in Macau are the industrial tax and profits tax. However, in recent years, industrial taxes have been exempted by the Macau Government and the profits tax threshold has also been increased in 2018. As such, Macau is one the region with the lowest corporate tax liability in Asia.
Singapore adopts a territorial basis of taxation. Income accruing in or derived from Singapore is subject to Singapore tax. Foreign source income is not taxable unless received in or remitted into Singapore. There is no precise definition of “source” in the Singapore Income Tax Act (Cap. 134) (“the Act”) and consequently, each commercial activity has to be carefully examined to determine the source from which it generated income.
