State Taxation Administration of The People's Republic of China recently issued the Notice on Adjusting the Scope of New Enterprise Income Tax Collection and Management (hereinafter referred to as the Notice) to adjust the scope of enterprise income tax collection and management.
The circular made it clear that, based on 2008, the enterprise income tax taxpayers managed by the State Taxation Bureau and the Local Taxation Bureau respectively will not be adjusted before the end of 2008.
Among the new corporate income tax payers since 2009, the corporate income tax of enterprises that should pay value-added tax is managed by State Taxation Administration of The People's Republic of China; The enterprise income tax subject to business tax shall be managed by the local taxation bureau. This provision will help to increase the revenue sources of local finance. According to the document issued by State Taxation Administration of The People's Republic of China in 2002, since June 5438+ 10/day, 2002, the newly-increased enterprise income tax has been collected and managed by State Taxation Administration of The People's Republic of China. In other words, from 2002 to 2008, local finance could not collect new enterprise income tax.