1994.01.01
STATE BUREAU OF TAXATION
CIRCULAR CONCERNING THE CALCULATION AND LEVY OF TAX ON INCOME GAINED
FROM TRANSPORTATION IN CHINA BY FOREIGN SHIPS AND FOREIGN NAVIGATION
(State Administration of Taxation: 8 January 1994 Coded Guo Shui Ming
Dian [1994] No. 009)
To the tax bureaus of various provinces, autonomous regions and
municipalities and to the tax bureaus of various cities with independent
planning:
After the Provisional Regulations of the People's Republic of China on
Business Tax and the Detailed Rules for Its Implementation are published
and put into practice, the stipulations concerning the levy of tax on
the transport income gained in China by foreign companies which engage
in international transportation by means of ships or aircrafts need to
be changed correspondingly. To make things convenient for
implementation, the Circular is hereby specially given as follows:
I. Calculated on the basis of the amount of each transport income earned
by foreign ships and foreign navigation, the rates of enterprise income
tax and local income tax remain at 1.65 percent; the rate of payable
business tax on transport income is 3 percent. In order to simplify tax
calculation and collection, the composite rate is 4.65 percent.
II. The above readjustment goes into effect from January 1, 1994.
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