AmCham-China

PRC Issues Guidance on Qualification of EIT Exemption for Non-Profit
Organizations: Opportunity or Challenge for Private Schools?

Two recent circulars issued jointly by the Chinese Ministry of Finance (MOF) and the State Administration of Taxation (SAT) (Circular 123 (Cai Shui [2009] No. 123) and Circular 122 (Cai Shui [2009] No. 122)) provide guidance on the identification and approval of an enterprise income tax (EIT) exemption for qualifying non-profit organizations and clarify the scope of income that qualifies the exemption. The circulars apply retroactively as from 1 January 2008.

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Deloitte China Tax Analysis - February 3, 2010 ( English, Chinese)