China's clear contract energy management tax incentives a total of three relief

Xinhuanet Beijing February 17th reporter learned from the Ministry of Finance on the 17th that from 2011, China's energy-saving service companies to implement contract energy management projects will enjoy a number of tax incentives such as value-added tax, business tax and corporate income tax. In order to encourage enterprises to use contract energy management mechanisms and increase efforts in energy conservation and emission reduction technology reform, the Ministry of Finance and the State Administration of Taxation jointly issued the "Notice on Promoting the Development of Value-Added Tax, Business Tax and Corporate Income Tax Policies for Energy-Saving Service Industries", which clearly Specific tax incentives for contract energy management projects in China. The two departments have clearly stated in the notice that the contractual energy management project is implemented for qualified energy-saving service companies, and the business taxable income obtained is temporarily exempted from business tax. The energy-saving service company implements the eligible contract energy management project, and transfers the VAT-taxable goods in the project to the energy-using enterprises, temporarily exempting the value-added tax. The notice also clarifies that to enjoy the above-mentioned business tax and value-added tax concessions, the relevant technologies for the implementation of contract energy management projects of energy-saving service companies shall comply with the technical requirements stipulated in the General Principles of Contract Energy Management Technology issued by the General Administration of Quality Supervision, Inspection and Quarantine and the National Standardization Administration. And the energy-saving service company and the energy-using enterprise signed the "energy-saving benefit-sharing type" contract, and the contract format and content should conform to the "Contract Law" and the General Principles of Contract Energy Management Technology issued by the General Administration of Quality Supervision, Inspection and Quarantine and the National Standardization Administration. And so on. In terms of corporate income tax concessions, the notice pointed out that if the energy-saving service company meets the requirements for the registered capital of not less than 1 million yuan and the investment of the energy-saving service company not less than 70% of the total investment in the implementation of the contract energy management project, The contract energy management project, in compliance with the relevant provisions of the enterprise income tax law, shall be exempted from corporate income tax from the first year to the third year from the tax year in which the first production and operation income of the project belongs, and 25% to the sixth year to the sixth year. The statutory tax rate is halved and the corporate income tax is levied. In addition, energy-saving service companies and energy-using enterprises that have signed energy-saving benefit-sharing contracts with them have preferential policies for implementing corporate income tax on assets related to contract energy management projects.

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