"Measures for the Administration of Enterprise Policy-based Relocation Income Tax": Chapter 2 Relocation Income

Article 5 The relocation income of an enterprise includes income from outside the enterprise (including government or other sources) during the relocation process. The relocation compensation income obtained by the unit), as well as the income from the disposal of the relocated assets of the enterprise, etc.

Article 6 The relocation compensation income obtained by an enterprise refers to the monetary and non-monetary compensation income obtained by the enterprise due to relocation. Specifically include:

(1) Compensation for the value of the expropriated assets;

(2) Compensation for relocation and resettlement;

(3) Compensation for losses caused by suspension of production and business;

(4) Insurance compensation obtained due to damage to assets during relocation;

(5) Other compensation income.

Article 7 Income from the disposal of enterprise relocation assets refers to the income obtained by the enterprise from the disposal of various assets of the enterprise due to relocation.

The income obtained by an enterprise from relocation and disposal of inventory shall be treated as income from normal operating activities and shall not be regarded as enterprise relocation income.

Chapter 3 Relocation Expenditures

Article 8 The relocation expenses of an enterprise include relocation expenses and enterprise asset disposal expenses due to relocation.

Article 9 Relocation expenses refer to various expenses incurred during the relocation of the enterprise, including the actual expenses incurred in relocating employees, wages and welfare fees paid to employees during the shutdown period, and temporary storage of relocated assets. Expenses incurred, relocation and installation costs of various assets and other relocation-related expenses.

Article 10 Asset disposal expenses refer to the expenses incurred by an enterprise in disposing of various assets due to relocation, including the net value of the sale and disposal of various assets, taxes and fees incurred during the disposal process, and other expenses.

If the assets scrapped by the enterprise due to relocation have no transfer value, their net value will be regarded as the enterprise’s asset disposal expenses.

Chapter 4 Tax Treatment of Relocated Assets

Article 11 If an enterprise’s relocated assets are simply installed or can continue to be used without installation, after the assets are put back into use , with respect to its net value, depreciation or amortization will continue to be made based on the years during which the asset has not yet been depreciated or amortized as stipulated in the Enterprise Income Tax Law and its Implementing Regulations.

Article 12 If the assets relocated by the enterprise require major repairs before they can be used again, the net value of the assets, plus the expenses incurred during the major repairs, shall be the tax calculation cost of the assets. . After the asset is put back into use, depreciation or amortization is accrued based on the remaining useful life of the asset.

Article 13. If the land expropriated during the relocation of an enterprise is replaced by land, the tax cost of the transferred land shall be based on the net value of the expropriated land and all other expenses incurred before the transferred land is put into use. This expense is the taxable cost of the transferred land. After the transferred land is put into use, it will be amortized according to the years stipulated in the Enterprise Income Tax Law and its implementation regulations.

Article 14 For various types of assets newly purchased during the relocation of an enterprise, the tax cost and depreciation or amortization life of the assets shall be calculated and determined in accordance with the relevant provisions of the Enterprise Income Tax Law and its Implementation Regulations. Expenditures incurred by an enterprise to acquire assets shall not be deducted from relocation income.

Chapter 5 Taxable Income

Article 15 The relocation income and relocation expenses incurred by the enterprise during the relocation period may not be included in the current taxable income for the time being. In the year of relocation, the relocation income and expenses shall be summarized and settled.

Article 16 The relocation income of an enterprise, the balance after deducting the relocation expenses, shall be the relocation income of the enterprise.

In the year in which the relocation is completed, the enterprise shall include the relocation income into the enterprise's taxable income for that year to calculate tax.

In the event of any of the following circumstances, in the year in which the relocation is completed, the enterprise shall carry out relocation liquidation and calculate relocation income:

(1) From the beginning of the relocation, within 5 years (including The year of relocation) The relocation is completed in any year.

(2) The year in which the relocation lasts for 5 years (including the year of relocation) starting from the relocation.

Article 18 If the relocation income of an enterprise after deducting relocation expenses is a negative number, it shall be a relocation loss. Relocation losses can be taxed in one of the following ways:

(1) In the year in which the relocation is completed, a one-time deduction will be made as a loss.

(2) It will be divided into three years starting from the year when the relocation is completed, and will be deducted evenly before tax.

The above methods are chosen by the enterprise, but once selected, they cannot be changed.

Article 19 If an enterprise meets the following conditions at the same time, it will be deemed to have completed its relocation:

(1) The relocation plan has been basically completed;

(2) The current production and operation income accounts for more than 50% of the annual production and operation income before the planned relocation.

Article 20 If an enterprise is relocating and producing at the same time, the relocation year shall be calculated from the year in which the relocation actually begins.

Article 21 If an enterprise has uncompensated losses in previous years, and if the enterprise stops production and operations due to relocation and has no income, it may be deducted from the year following the year of relocation to the year before the year in which the relocation is completed. As the year of cessation of production and business activities, it shall be deducted from the statutory loss carryover and compensation years; if the enterprise is relocating and producing at the same time, its loss carryover years shall be calculated continuously.

Chapter 6 Collection Management

Article 22 The enterprise shall report to the competent tax authorities (including the place of relocation and the place of relocation) from the year of relocation to May 31 of the following year. (Entry) Submit policy-based relocation basis, relocation plan and other relevant materials. If the relocation is not reported within the time limit, except for special reasons and approved by the competent tax authorities, it will be treated as a non-policy relocation and the provisions of these Measures shall not be implemented.

Article 23: The policy relocation basis, relocation plan and other relevant materials that enterprises should submit to the competent tax authorities include:

(1) Government relocation documents or announcements;

(2) Overall plan for relocation and resettlement;

(3) Demolition compensation agreement;

(4) Asset disposal plan;

(5) Other matters related to relocation.

Article 24 If there is a change in the tax authorities in charge of the place where the enterprise moves out and the place where it moves to, the tax authorities in charge of the place where the enterprise moves will be responsible for the liquidation of the enterprise's relocation.

Article 25: When an enterprise submits its annual corporate income tax return to the competent tax authorities in the year in which it has relocated, it should also submit the "Enterprise Policy Relocation Liquidation Profit and Loss Statement" (sample of the form is attached) ) and related materials.

Article 26 If an enterprise has not completed relocation before these Measures come into effect, all relocation matters that comply with the provisions of these Measures will be implemented in accordance with these Measures. If the relocation has been completed before the year in which these measures take effect and the tax treatment has been carried out according to the original regulations, no adjustment will be made.