Energy Conservation Service Enterprises Pay Taxes &Nbsp; Two Ministries And Commissions Offer Three Green Light.

In February 17th, the Ministry of Finance and the State Administration of Taxation jointly issued the "development of energy saving service industry".

The notice clearly stated that the sales tax taxable income obtained by the qualified energy saving service company should be temporarily exempt from the business tax.

The energy conservation service company implements the qualified contract energy management project, pfers the Value-added Tax Taxable goods in the project to the energy consuming enterprise, and temporarily exempts the value-added tax.

It is learnt that contract energy management is a common service mechanism developed by developed countries and used to promote energy conservation by market means.

The energy saving service company will invest in advance, and the return will be reflected after the pformation of the scheme.

That is to say, energy intensive enterprises do not need to invest too much, so they can carry out energy saving pformation.

"Generally speaking, energy saving projects take three to five years to recover investment, so this requires energy saving companies to have strong backing."

Ma Qiang, executive deputy director of the center for energy saving and emission reduction, said.

Eligible persons are exemption from three taxes.

In addition to the above two preferential policies, the notice also proposes that the investment in energy saving service companies should be no less than 70% of the total investment amount of the contract energy management project, and the other energy-saving service companies shall implement the contract energy management project. Since the first production of the project is obtained, the enterprise income tax shall be exempted from the first year to the third year of the tax year, and the enterprise income tax shall be levied at the rate of fourth to sixth years in accordance with 25% statutory tax rates.

The actual expenditure paid to the energy saving service company by the contract can be deducted from the calculation of the current taxable income, and no longer will be differentiated from the service charge and the asset price for tax treatment. After the expiration of the energy management contract, the assets formed by the energy pfer service company pferred to the energy efficient enterprise as a result of the implementation of the contract energy management project shall be disposed of according to the assets that expired or amortized. The tax base of the energy consuming enterprise receiving the assets from the energy conservation service company shall also be disposed of according to the assets that expired or amortized. When the energy management contract expires, the asset price paid by the energy efficient enterprise will no longer be included in the income of the energy conservation service company when the energy saving service company and the energy consuming enterprise handle the pfer of the assets concerned. According to the notice, energy efficient enterprises are managed according to energy resources.

Energy saving projects will be released.

"According to policy, we reduce 1/4 expenditure. This is a very small number."

Zhu Binbin, chairman of Beijing ideal Albert energy saving investment Co. Ltd., could not conceal his joy after learning of the policy.

Ma Qiang, taking the municipal road lighting energy saving as an example, told the daily economic news reporter that according to the current technological capability, energy saving could reach 40%, and the energy and energy saving service companies were divided into the amount of energy saved according to the calculation. If calculated in proportion to 4:6, even if the payback period is 4~6, the income tax will be increased by half if the enterprise income tax is calculated.

Zhu Binbin said that the implementation of this energy saving policy will promote energy conservation projects in industrial and construction fields.

According to him, large scale energy saving projects in the industrial field such as metallurgy, building materials, petrochemical industry and electric power will be further promoted, and energy saving in small projects such as commercial buildings, residential buildings and small and medium-sized enterprises will be further developed.

Ma Qiang believes that from the current development of the energy-saving industry, financial companies and energy-saving enterprises to become a more common form of docking.

"The introduction of this policy will enable financial enterprises to pform to energy-saving companies."

Zhu Binbin said that this will enable enterprises to scale, brand and network operation through mergers, mergers and reorganizations, and form a large number of well-known service companies and specialized energy-saving supermarket service companies with well-known brands.