Capital transfers:

Income received by a company from selling an entire single-member limited liability company owned by an organization, in the form of a capital transfer associated with real estate, is declared and subject to CIT as income from real estate transfer, on the full transfer value under the transfer contract.

Land rent and management fees:

Land rent paid in a lump sum for the entire lease term and management fees for leased land not yet used for production and business are not deductible expenses for CIT purposes while the leased land has not been put into use for the company's production and business.

CIT incentives for other income:

Where a company's investment project enjoys CIT incentives because it meets location conditions, the incentivized income is the income from the production and business of the project in the incentivized area, excluding income not eligible for incentives under the CIT Law. Income not arising from the project's production and business in the incentivized area does not qualify for location-based CIT incentives.

Accordingly, income from the write-off of amounts payable to suppliers does not arise from the project's production and business in the incentivized area and does not qualify for location-based CIT incentives.

VAT policy:

A company exporting agricultural products that are unprocessed or only ordinarily pre-processed to a foreign enterprise, with a contract and customs declaration but without bank payment documents and other related documents, does not qualify for the 0% rate; it does not calculate output VAT but may not deduct input VAT.