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	OFFICIAL REPLY OF THE STATE ADMINISTRATION OF TAXATION ON THE ISSUE CONCERNING EXEMPTION OF BUSINESS TAX ON INCOME OBTAINED FROM TRANSFER OF TECHNOLOGIES BY AMPHENOL-AMERICAN CORPORATION AND OTHER FOREIGN ENTERPRISES

	(No. 1056 [2003] of the State Administration of Taxation September 15, 2003)


SUBJECT : CORPORATE TAXATION; INCOME EXEMPTION; INCOME FROM TRANSFER OF TECHNOLOGIES
ISSUING DEPARTMENT : THE STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 09/15/2003
IMPLEMENT DATE : 09/15/2003
LENGTH : 433 words
TEXT :

Regarding Instructions on the Issue concerning Exemption of Business Tax on Technical Income of the Amphenol-American Corporation (No.659 [2003] of Shenzhen Local Taxation Bureau), Request for Instructions on Exemption of Business Taxes on Technical Income of Japan Sumitomo Osaka Cement Co., Ltd. (No.680 [2003] of Shenzhen Local Taxation Bureau), Request for Instructions on Issues concerning Exemption of Business Tax on Technical Income of Canada T£¦SphotonicsInc. (No.710 [2003] of Shenzhen Local Taxation Bureau), and Request for Instructions on Issues concerning Exemption of Business Taxes on Technical Income of Japan HIPARTS Co., Ltd. (No. 717 [2003] of Shenzhen Local Taxation Bureau), we hereby make the following reply:

According to the relevant provisions of the "Circular of the Ministry of Finance and the State Administration of Taxation on the Relevant Taxation Issues concerning the Implementation of the 'Decision of the Central Committee of the Communist Party of China and the State Council on Strengthening Technical Innovations, Developing Hi-Techs, and Realizing Industrialization'" (No. 273 [1999] of the Ministry of Finance) and the "Circular of the State Administration of Taxation on Clarifying the Scope for Exemption of Business Tax on the Income Obtained from Transfer of Technologies by Foreign Enterprises and Foreign Individuals" (No. 166 [2000] of the State Administration of Taxation), and upon verification, we approve that Amphenol-American Corporation and the other three foreign enterprises which have concluded technology transfer contracts with Chinese enterprises may be exempted from paying business tax for the income obtained from transfer of technologies after October 1, 1999. However, the business tax shall still be levied according to the rules upon the technical service fee irrelevant to technology transfer and upon the trademark use fee contained in the income from transfer of technologies.

I. The income obtained from transfer of the relevant technologies under the "Contract on Introduction of Technologies" concluded between Amphenol-American Corporation and Amphenol East Asia Electronic Technology (Shenzhen) Co., Ltd. (Contract No.: 01USSZY4120010001).

II. The income obtained from transfer of the relevant technologies under the "Contract for Technology Transfer of the High Performance Coating and License for Use of the Patent" (Contract No.: 03JPSZY2620030001) concluded between Japan Sumitomo Osaka Cement Co., Ltd. and Zhulong Nano Technology (Shenzhen) Co., Ltd..

III. The income obtained from transfer of the relevant technologies under the "Agreement" (Contract No.:03CASZY41TS021219) concluded between Canada T£¦SphotonicsInc. and Shenzhen Tai Chenguang Telecommunications Co., Ltd.

IV. The income obtained from transfer of the relevant technologies under the "Agreement on Transfer of the Technology for Manufacture of HIPARTS Wiring Harness" (Contract No.: 03JPSZY35KHPDFZY1) concluded between Japan HIPARTS Co., Ltd. and Shenzhen Dongfeng Real Estate Limited Company.