China

Details

  • Service: Tax, China Tax Services
  • Industry: Financial Services, Insurance
  • Type: Business and industry issue, Publication series, Regulatory update
  • Date: 7/7/2014

New CIT Rules on Deduction of Reserves by Insurance Companies 

China Alert: Financial Service Focus - Issue 1, July 2014

 

The State Administration of Taxation recently published Announcement of the State Administration of Taxation on Several Issues Concerning Corporate Taxable Income, which, among other matters, clarifies the tax deduction on insurance reserves in the hands of insurance companies.  The effective date of the Announcement was backdated to 1 January 2013.


Insurance companies should pay attention to whether the reserve provisions accrued in compliance with the relevant regulations under the China Insurance Regulatory Commission are in line with the related tax rules and make tax adjustments accordingly.

China alert: Financial Service Focus
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