According to China News Network news, February 27, China's State Administration of Taxation held in the first quarter of 2018 tax policy interpretation press conference, the State Administration of Taxation Deputy Director of International Tax Division Huang Suhua said that the global tax policy has shown new changes in new features Many countries have introduced preferential tax policies to encourage investment.In order to increase the utilization rate of foreign-invested resources and enhance the competitiveness of China in attracting foreign investment, and encourage overseas investors to continuously expand their investment in China, the Ministry of Finance, the State Administration of Taxation, the State Development and Reform Commission, the commercial department Ministry jointly issued four documents issued by the Ministry of Foreign Investors temporarily withholding income tax conditions, enjoy preferential procedures and responsibilities, follow-up management, departmental coordination mechanism made specific provisions at the same time, the State Administration of Taxation also issued a separate announcement clearly Relevant supporting collection and management system to ensure the timely implementation of the policy in place.
Recently, the Ministry of Finance and the State Administration of Taxation jointly issued the "Circular on Perfecting the Policy on Tax Reward of Overseas Income of Enterprises", which has perfected the tax policy of overseas income tax from two aspects: Based on the credit method, increase the comprehensive credit method and give the enterprise the right to choose on its own; and adjust the level of indirect credit exemption of overseas dividend from three levels to five levels.
At the press conference, Liu Baozhu, deputy director of the income tax department of the State Administration of Taxation, said that overseas income tax credit refers to the amount of corporate income tax directly or indirectly obtained by an enterprise from obtaining overseas income. It can deduct from its domestic income tax payable This is a way to eliminate double taxation internationally and effectively reduce the tax burden on China's 'going out' enterprises.
Liu Baozhu said that after increasing the comprehensive credit exemption method, the credit balances of low-tax countries can be adjusted for use by high-tax countries, and the part of high-tax countries exceeding the credit limit can also be credited so that the credit of enterprises is more fully and effectively reduced The overall tax burden on overseas enterprises.At the same time, compared with the single non-classified credit method, the complexity and workload of enterprises in calculating the foreign-based credit limit is greatly reduced, and the compliance of corporate tax law is also increased accordingly At the same time, increasing the level of indirect credit offset is also more in line with the actual situation of the enterprises, making the credit of enterprises more sufficient and helping to better encourage Chinese enterprises to 'go global.'
At the press conference on the day of the ceremony, Huang Sulawah also said when answering a reporter's question that at present, China has signed tax treaties with 107 countries and regions and has formed a worldwide network of agreements that cover the major ones that have a closer relationship with China's bilateral investment Economy, to attract foreign investment and encourage foreign investment has played a positive role in promoting.In order to better adapt to changes in the situation and the new situation encountered by enterprises, recently, the State Administration of Taxation released "about tax beneficiaries of the agreement" about Notice of Issues "and" Notice on Several Issues Regarding the Implementation of Tax Agreements, "clarifying the relevant issues in the implementation of tax treaties.