1. If the relocated enterprise purchases and builds fixed assets and land (hereinafter referred to as fixed assets replacement) with the same or similar nature and use as before relocation, and carries out technical transformation or resettles employees according to the relocation plan, the relocation income of the relocated enterprise is allowed to deduct the fixed assets replacement, technical transformation and employee resettlement expenses, and the balance is included in the taxable income of the enterprise.

2. If an enterprise does not use the relocation income to replace fixed assets or carry out technical transformation due to the change of production and operation direction, but uses the relocation income to purchase other fixed assets or carry out other technical transformation projects, the relevant expenses can be deducted from the policy relocation income of the enterprise, and the balance is included in the taxable income of the enterprise.

3. If the relocated enterprise has no plan or project report on the replacement of fixed assets, technical transformation or the purchase of other fixed assets, the relocation income plus the sales income of all kinds of dismantled fixed assets, after deducting the depreciation value and disposal expenses of all kinds of dismantled fixed assets, shall be included in the taxable income of the enterprise in the current year and enterprise income tax shall be calculated and paid.

4. Fixed assets purchased by relocated enterprises with policy relocation income can be depreciated or amortized according to current tax regulations and deducted before enterprise income tax.

5. If the relocation income of the relocated enterprise is not included in the taxable income of the enterprise in the current year within five years from the second year of the planned relocation, and the relocation income of the enterprise is completed within five years, after deducting the relevant costs and expenses according to the above provisions, the balance will be incorporated into the taxable income of the relocated enterprise in the current year and enterprise income tax will be paid.

Extended data

Relocation and transformation of hazardous chemicals production enterprises in densely populated urban areas.

The General Office of the State Council recently issued "Guiding Opinions on Promoting the Relocation and Transformation of Hazardous Chemical Production Enterprises in Urban Densely-populated Areas" (hereinafter referred to as "Opinions").

The Opinions pointed out that the relocation and transformation of hazardous chemicals production enterprises in urban densely populated areas is an important means to adapt to the rapid development of urbanization in China and reduce the safety and environmental risks in urban densely populated areas.

It is of great significance to solve the problem that the safety and health protection distance of hazardous chemicals production enterprises is not up to standard, effectively curb serious accidents of hazardous chemicals, ensure the safety of people's lives and property, and promote the transformation and upgrading of petrochemical industry.

By 2025, the existing hazardous chemical production enterprises in densely populated urban areas that do not meet the requirements of safety and health protection distance will meet the standards on the spot, move into standardized chemical parks or close down, and the safety and environmental risks of enterprises will be greatly reduced.

The Opinions put forward six key tasks.

The first is to organize bottom-up evaluation. The people's governments at the provincial level should organize investigations and register the existing hazardous chemical production enterprises that do not meet the requirements of safety and health protection distance in densely populated areas of cities one by one.

The second is to prepare the implementation plan for relocation and transformation. The people's governments at the provincial level shall make overall plans for the relocation and transformation of hazardous chemicals production enterprises in the region, and announce them to the public before the implementation of the plan.

The third is to organize the implementation of relocation and transformation. The provincial people's governments should strengthen organization and coordination, actively assist enterprises to solve the problems existing in the process of relocation and transformation, and minimize the impact of relocation and transformation on the production and operation of enterprises.

The fourth is to strengthen the safety and environmental management of relocation and transformation. Local people's governments at all levels should strengthen project management, prohibit relocation and transformation enterprises from building or expanding hazardous chemicals projects at the original site, and urge enterprises to carry out safety and environmental impact assessment of relocation and transformation projects according to law.

The fifth is to properly resolve various risk issues. Properly solve the problem of employee diversion and resettlement brought about by relocation and transformation, and do a good job in social stability risk assessment.

The sixth is to promote industrial transformation and upgrading. Give full play to the guiding role of industry planning and industrial policies, encourage the organic combination of relocation and transformation, merger and reorganization, elimination of backward production capacity, process reengineering, organizational restructuring and brand building, and enhance the market competitiveness of enterprises.

The Opinions formulated three policy measures.

First, increase fiscal and taxation policy support. For eligible relocation and transformation projects, support policies such as financial support and policy relocation income tax management measures will be given.

The second is to broaden financing channels. Support qualified relocation and transformation enterprises to raise funds for relocation and transformation through bank loans, issuance of corporate bonds, corporate bonds, medium-term notes and short-term financing bonds.

The third is to increase land policy support. The newly-added construction land plan is appropriately tilted to the land undertaken by the relocated enterprises, and the local government can recover the transfer income of the vacated land, and can pay the resettlement expenses of enterprise employees through budgetary arrangements according to regulations.

People's Republic of China (PRC) State Taxation Bureau official website city-enterprise policy relocation income enterprise income tax treatment related issues.

People's Network-Enterprises that produce hazardous chemicals in densely populated urban areas will be relocated and transformed.