The relevant departments are studying the tax deduction policy of foreign project Contracting enterprises

The reporter learned yesterday, in order to encourage Chinese enterprises to "go out", the relevant departments are studying the introduction of foreign engineering contracting Enterprises tax relief policies. Since December 1986, China has stipulated that foreign project contracting companies in foreign contracted projects to obtain income, do not levy business tax, the organization of domestic enterprises to foreign subcontracting projects, from the subcontracting units to obtain management fee income, exempt from business tax.　　However, in the "Implementation rules" issued at the end of 2008, the project contracting enterprises in the overseas subcontracting projects and services are included in the scope of business tax levy, the need to pay 3%-5% of the business tax. This policy has cost many businesses a lot of money.　　Due to the long execution cycle of overseas projects, those who signed the contract before 2009, have not signed the contract and have taken part in the bidding, the enterprises did not consider the new sales tax when quoting, if these items are implemented according to the new regulations, the enterprise tax burden will be increased, and individual projects may lose their cost.　　A domestic project contracting Enterprise business manager, said that many of the company's projects are often a sign is 10-20 years, the current company in the hands of the contract outside the business part of the total amount of 2.29 billion U.S. dollars, according to the new provisions should be paid sales tax 110 million U.S. dollars, and 700 million yuan, which is almost equivalent to 1 To this end, many enterprises have been to the competent authorities signed a petition to the foreign contracting project reduction or exemption from business tax. Enterprises also suggested that if the new rules can not be changed, it is recommended that the actual operation of the distinction between old and new contracts, that is, the old contract to adopt the old-fashioned way, new contract new method.　　In other words, to the January 1, 2009 signed, has not signed the project, exempted from the overseas subcontracting business tax, the contract after January 1, 2009, according to the new provisions of the implementation. In the first half of this year, China's foreign contracted projects completed turnover of 32.18 billion U.S. dollars, an increase of 52%, the new contract amounted to 64.62 billion U.S. dollars, an increase of 38.1%.　　Among them, the contract amount of 50 million U.S. dollars above 226 items, accounting for the total new contract 80.2%. China electromechanical products Import and export Chamber of Commerce Project Minister Han San Jian that, after the financial crisis, the project contracting enterprises in the future of the project to reduce rapidly, facing tremendous development pressure. If the implementation of the new tax law, will weaken the international competitiveness of domestic enterprises, and then affect the survival of some enterprises, its negative impact must not be underestimated.