Foreign invested enterprises wishing to receive a reduction or exemption of corporate income tax payment as specified in the investment license shall only have to send a written letter asking for tax exemption or reduction to local tax departments that directly collect income tax of FIEs, according to a dispatch released by the General Department of Taxation (GDT).
The written request should include detailed information on realistic criteria FIEs have achieved each year that enable them to receive tax preferences.
After examining these criteria, tax departments shall notify FIEs in writing of whether they meet requirements for tax reductions/exemptions. In the case FIEs haven’t yet met the requirements, tax authorities shall send a written notice to the FIE and report to the GDT under the finance ministry as well as the agency that granted the investment license to the FIE.
[Official Letter 12825-TC/TCT NOV 25, 2002]
[Intellasia Legal Digest]