Ministry of Finance, General Administration of Customs and State Administration of Taxation, Circular on Launching the Pilot Project for Export Tax Rebate for Vessels under Lease Financing in the Tianjin Municipality

财政部、海关总署、国家税务总局关于在天津市开展融资租赁船舶出口退税试点的通知

May 13, 2010 | BY

clpstaff &clp articles &

Tianjin exempts tax on sale of vessels to foreign lessees.

Clp Reference: 3220/10.03.30 Promulgated: 2010-03-30 Effective: 2010-04-01

Issued: March 30 2010
Effective: April 1 2010

Applicability: The term “lease financing” refers to the transaction whereby a lessor leases a vessel obtained from the supplier to the lessee for occupation and use for rental fees in accordance with the stipulations of the contract and based on the lessee's selection or approval in respect of the leased object and the supplier (Article 1).

The term “lease financing enterprises” refers to the following companies that are incorporated in the Tianjin Municipality: lease financing companies established with the approval of the China Banking Regulatory Commission, foreign-invested lease financing companies established with the approval of the Ministry of Commerce, and Chinese-invested lease financing enterprises approved jointly by the Ministry of Commerce and State Administration of Taxation to participate in the pilot project for the financing business (Article 2).

Main contents: The Circular states that a one-year export tax rebate pilot project for transfer of ownership of vessels by lease financing enterprises to overseas enterprises will be implemented in Tianjin. The export of vessels under lease financing shall be entitled to exemption and refund of value-added tax, i.e. the output tax for the vessel shall be exempted and the input tax shall be refunded. The tax amount already levied on the taxable consumer goods that require payment of consumption tax shall be refunded (Article 6).

clp reference:3220/10.03.30promulgated:2010-03-30effective:2010-04-01

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