CIRCULAR CONCERNING THE CALCULATION AND LEVY OF TAX ON INCOMEGAINED FROM TRANSPORTATION IN CHINA BY FOREIGN SHIPS AND FOREIGN NAVI-GATION
CIRCULAR CONCERNING THE CALCULATION AND LEVY OF TAX ON INCOMEGAINED FROM TRANSPORTATION IN CHINA BY FOREIGN SHIPS AND FOREIGN NAVI-GATION
(State Administration of Taxation: 8 January 1994 Coded Guo ShuiMing Dian [1994] No. 009)
Whole Doc.
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.
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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