New preferential Corporate Income Tax policy for agriculture, forestry, herding & fishery enterprises

10/10/2011

In September 2011, the State Administration of Taxation (“SAT”) released the “Announcement of the State Administration of Taxation on the Implementation of the Preferential Corporate Income Tax Policies for Agriculture, Forestry, Herding and Fishery Enterprises”.

The Announcement states that processing fees charged by enterprises which are appointed to process qualifying agricultural products may be exempted from corporate income tax (“CIT”). However, proceeds from sale of tea leaves after the selection, consignment and packing processes shall not be exempted.

The Announcement further specifies that pelagic enterprises certified as “Qualifying Pelagic Enterprises” as approved by the Ministry of Agriculture within the valid period may be exempted from corporate income tax for proceeds derived from oceanic fishery.

The new policy has retroactive effect as of 1 January 2011.


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