Global

Details

  • Service: Tax, International Corporate Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 6/14/2012

China - Clarifying, extending the rules for deducting insurance reserves 

June 14:   China’s Ministry of Finance and the State Administration of Taxation jointly issued guidance to clarify the rules relating to the corporate income tax deduction available for insurance companies with respect to various reserves. The new guidance is effective retroactively for 2011 through 2015.

The new guidance—Caishui [2012] No. 45 (Circular 45)—was issued clarify prior guidance—Caishui [2009] No. 48 (Circular 48)—which originally addressed the deduction for corporate income tax purposes of reserves for insurance companies and was effective from 1 January 2008 to 31 December 2010.


New Circular 45 clarifies the detailed corporate income tax deduction rules for various reserves for insurance companies, and is effective from 1 January 2011 to 31 December 2015.


To read a June 2012 report [PDF 323 KB], prepared by the KPMG member firms in China and Hong Kong: SAT and MoF clarify corporate income tax deduction rules for insurance reserves




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