China Issued New Tax Preferential Policy on Stock Incentive and Technology Contributed as Shares
In September 2016, approved by the State Council of China, the Ministry of Finance, and State Administration of Taxation of China have co-issued the Circular on Improving the Income Tax Policies on Stock Incentive and Technology Contributed as Shares
China Issued New Tax Preferential Policy on Stock Incentive and Technology Contributed as Shares
In September 2016, approved by the State Council of China, the Ministry of Finance, and State Administration of Taxation of China have co-issued the Circular on Improving the Income Tax Policies on Stock Incentive and Technology Contributed as Shares (numbered Cai Shui [2016] 101), according to which, qualified private companies may apply to defer the tax payment on tax related to its share
option, equity option, restricted share and equity incentive schemes, and qualified public companies may apply to extend the taxation period on tax related to its share option, restricted share and equity incentive schemes, and technology contributed as shares may apply for optional tax preferential policies. Meanwhile, the State Administration of Taxation of China has also issued a set of supporting measures for administration purposes.
The issuance of the above circular will further encourage technology innovation and stimulate scientists to be more active and creative, in order to turn technology achievements into
productivity and promote China’s economic structure transformation and upgrading.
The issuance of the above circular will further encourage technology innovation and stimulate scientists to be more active and creative, in order to turn technology achievements into
productivity and promote China’s economic structure transformation and upgrading.
China Reduced Its Consumption Tax Rate on Cosmetics
In September 2016, approved by the State Council of China, the Ministry of Finance and State Administration of Taxation of China have co-issued the Circular on Adjusting Consumption
Tax Policies on Cosmetics (numbered Cai Shui [2016] 103) and the Circular on Adjusting Consumption Tax on Imported Cosmetics (numbered Cai Guan Shui [2016] 48), according to which, the consumption tax used to be levied on ordinary beauty products and daily cosmetics is cancelled and the consumption tax rate on imported high-end cosmetics is reduced from 30% to 15%.
The issuance of the above two circulars are good news for the cosmetic industry. The mass or lower price cosmetics are exempted from consumption tax, and those with higher-price are likely to reduce their selling price due to the reduction in tax.
Contributed by
Gong Jian
Partner of Pan-China
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