国税发[1995]197号
颁布日期：19951026 　实施日期：19951026 　颁布单位：国家税务总局

　　GuoShuiFa [1995] No.197

　　October 26， 1995

　　The local tax bureaus of provinces， autonomous¹ regions， municipalities directly under the Central Government and municipalities separately listed on the State plan：

　　Now the relative issues how to levy² the tax of income from the undertaking³ of contracted project and offering the labor⁴ services within the territory of China by the foreign enterprises should be clarified as follows：

　　I. The foreign enterprises that have signed the sales contract of machinery⁵ and equipment and simultaneously⁶ offer the labor services such as equipment installation， assembling， technology training， guide and supervision⁷ and etc. should pay the tax of income obtained from service charge according to the law of tax. if labor service charge is not listed in the sales contract or is fixed⁸ an unreasonable⁹ price， the taxation¹⁰ institutions should define the income of labor services by the foreign enterprises according to the actual conditions and calculate and levy the sales tax and income tax of enterprises in principle of no less than 5% of total cost of the contract.

　　II. The foreign enterprises， undertaking contracted project and offering the labor service within the territory of China， whose corporate¹¹ income tax is imposed at the checked profit rate， should be checked the profit rate with reference to profit level of the same trade and imposed the corporate income tax at hereinabove checked profit rate in principle of not less than 10% income deducted¹² of the cost of contract transfer and cost of the equipment and material purchase and manufacture on the commission basis. Subparagraphs 1，2 of Article 1 of the Interim¹³ Provisions of the Ministry¹⁴ of Finance on Levying¹⁵ the Consolidated¹⁶ Industrial and Commercial Tax and Enterprise Income Tax of the Foreign Enterprises Undertaking Contracted Project and Offering the Labor Service （CaiShuiZi [1983] No.149） and Circular of the Ministry of Finance on Computing¹⁷ and Levying Tax on the Income of Contracted Project Partially¹⁸ Deducted of the Cost of the Equipment and Material Purchase and Manufactureon the Commission Basis by the Foreign Enterprises Undertaking Contracted Project and Offering the Labor Service （CaiShuiZi [1987] No.134） should be followed.