(State Administration of Taxation: 8 January 1994 Coded Guo ShuiMing Dian [1994] No. 009)

(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.