The State Administration of Taxation promulgated the Announcement on Issues Relating to Enterprise Income Taxes (the “Announcement”) on December 9, 2016. The Announcement set the following requirements regarding enterprise income taxes in accordance with the Enterprise Income Tax Law of the People’s Republic of China and its implementation regulations: Premiums for personal injury liability Announcement of the State Administration for Taxation on Issues Concerning Enterprise Income Taxes.
Insurance covering transportation during business trips may be deducted from the enterprise’s taxable income during assessment. In addition, if an enterprise transfers any asset to another party for market promotion or sales, social gatherings, employee benefits or welfare, distribution of dividends, donation to outside parties or purposes that cause a change to the ownership of the asset per Article 2 of the Notice of the State Administration of Taxation on Issues Concerning the Tax Treatment of Income from Disposal of Assets by Enterprises (Shui Han  No. 828), the sales income should be determined based on the fair value of the asset so transferred unless otherwise stipulated.
The Announcement applies to the assessment and payment of enterprise income taxes for 2016 and thereafter, and it came into effect on the day of its promulgation. Article 3 of the Notice of the State Administration of Taxation on Issues Concerning the Tax Treatment of the Income from Disposal of Assets by Enterprises (Shui Han  No. 828) was superseded and became void at the same time.