Jun 2008 - Tax Update
June 2008
Administrative Measures on Qualifications for High and New Technology Enterprises
The long awaited Administrative Measures are finally issued. They set out details on the qualifications for being recognized as HNTEs. Enterprises with the status of HNTEs will be entitled to a preferential enterprise income tax rate of 15% comparing to the normal rate of 25%
Update on Tax Deduction on Donations Made by Individuals to Earthquake-hit Area
Hundreds of billions of Yuan have been donated to disaster areas to ease the pain resulted from the 12 May Sichuan earthquake although the exact amount has not yet been announced by the PRC government.
The PRC State Administration of Taxation (“SAT”) issued a Notice, Guoshuifa [2008] No. 55 (“the Notice”), on 21 May 2008 in response to the generous donations made by individuals to the 12 May earthquake disaster areas.
