(November18, 2000)
In order to make tax burden fair and reasonable and support the economic development in the central and western regions and in accordance with the provisions of the Income Tax law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises, the circular concerning the issue of levying enterprise income tax on interest, rents, royalties and other incomes derived by foreign enterprises from sources in China is hereby issued as follows: Enterprise income tax on interest, rents, royalties and other incomes derived from sources in China by foreign enterprise which have established offices or business premises in China, or those the above-mentioned various items of incomes of which actually have nothing to do with the offices or business premises they have established, shall be levied at a reduced tax rate of 10 percent as of January 1, 2000.
