Question 1: What is the preferential corporate income tax for comprehensive utilization of resources?
The income obtained by enterprises from the production of products that are not restricted or prohibited by the state and meet the relevant national and industry standards shall be included in the total income at a reduced rate of 90% if the resources specified in the Catalogue of Enterprise Income Tax Incentives for Comprehensive Utilization of Resources are used as the main raw materials.
Note: The proportion of raw materials in the production of products and materials shall not be lower than the standard stipulated in the "Catalogue of Enterprise Income Tax Incentives for Comprehensive Utilization of Resources".
Question 2: Does the comprehensive utilization of resources need to be filed to enjoy preferential enterprise income tax?
Enterprises enjoy preferential treatment by adopting the method of "self-judgment, declaration and enjoyment, and retention of relevant materials for future reference". Enterprises should judge whether they meet the conditions stipulated in the preferential items according to their business conditions and relevant tax regulations, and if they meet the requirements, they can calculate the tax reduction and exemption amount within the prescribed time, and enjoy tax incentives by filling in the enterprise income tax return. At the same time, collect and retain relevant materials for future reference in accordance with regulations.
The main retained materials include:
A description of the actual comprehensive utilization of resources of the enterprise (including the resources comprehensively utilized, technical standards, product names, etc.); Explanation of the accounting of income obtained from the comprehensive utilization of resources to produce products.
Note: The information retained by the enterprise for future reference shall be retained for 10 years from the day after the end of the enterprise income tax final settlement period in the year in which the enterprise enjoys the preferential items.
Question 3: If the income obtained from engaging in non-comprehensive resource utilization projects and the income obtained from the production of comprehensive utilization of resources products are not accounted for separately, can they enjoy the preferential tax treatment of enterprise income tax?
According to the "Cai Shui [2008] No. 47), the non-comprehensive utilization income obtained by an enterprise engaged in other projects at the same time shall be accounted for separately from the income from comprehensive utilization of resources, and if there is no separate accounting, it shall not enjoy preferential policies.
Question 4: There are two versions of the Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources, which version shall prevail?
The Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources (2021 Edition) will come into force on January 1, 2021. If an enterprise engaged in the comprehensive utilization of resources meets the scope specified in the Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources (2008 Edition), but does not meet the scope of the Preferential Catalogue of Enterprise Income Tax for Comprehensive Utilization of Resources (2021 Edition), it can continue to enjoy the preferential treatment until December 31, 2021 in accordance with the policy provisions.
Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources (2021 Edition)
Question 5: Can I enjoy the preferential enterprise income tax for comprehensive utilization of resources only when remittance? How to fill out the declaration form?
You can enjoy it in prepayment or in final settlement!
For example, if the business scope of enterprise A is the production and sale of paper products, and its use of waste paper to produce paper products meets the technical standards stipulated in 3.11 of the Catalogue of Preferential Enterprise Income Tax for Comprehensive Utilization of Resources (2021 Edition), the declaration will be handled as follows:
When filing quarterly prepayment
In line A200000 7 of the "People's Republic of China Enterprise Income Tax Monthly (Quarterly) Prepayment Tax Return (Class A)" (2021 Edition), check the preferential item 7.1 "Income obtained from comprehensive utilization of resources to produce products is deducted from income when calculating taxable income" in the drop-down menu under the item "Less: tax-exempt income, reduced income, and additional deduction" in line 7 of the main table, and fill in the amount of income obtained by taxpayers from comprehensive utilization of resources to produce products multiplied by 10% in the column of "Cumulative amount this year".
When filing the annual tax settlement
In line 18 of the Schedule A107010 "Tax-exempt, Reduced-off Income and Additional Deduction Preferential Schedule", "(1) Income obtained from the comprehensive utilization of resources to produce products shall be deducted from the income when calculating the taxable income", fill in the amount of the income obtained by the taxpayer from the comprehensive utilization of resources to produce products multiplied by 10%.
Policy basis
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(CS [2008] No. 47)
(Announcement No. 23 [2018] of the State Administration of Taxation)
(Announcement No. 36 [2021] of the Ministry of Finance, the State Administration of Taxation, the National Development and Reform Commission, and the Ministry of Ecology and Environment)
Source: Guangdong Taxation. 20240514。 The content of this article is for general information purposes only and is not intended as formal auditor, accounting, tax or other advice, and we cannot guarantee that such information will remain accurate in the future. No person should act on the basis of the information contained herein without having due regard to the relevant circumstances and obtaining appropriate professional advice. The articles reproduced in this issue are for academic exchange purposes only. The original copyright of the article or material belongs to the original author or original copyright owner, and we respect copyright protection. If you have any questions, please contact us, thank you!