Laws of the People's Republic of China

The State Administration of Taxation

Notice of the State Administration of Taxation on Rebate of Newly-built Enterprise Business Income Tax in Cargo Transport Industry

Guo Shui Han [2006] No. 249

To states tax bureaus, local tax bureaus of all provinces, autonomous region, municipalities directly under the Central Government, cities specifically designated in the state plan:

After the distribution of Notice of the State Administration of Taxation on Strengthening Tax Imposition in Cargo Transport Industry (Guo Shui Fa [2003] No.121) and Notice of the State Administration of Taxation about Several Tax Issues Concerning Cargo Transport Industry (Guo Shui Fa [2004] No. 88) , all levels of local tax authorities reflected that the state tax bureau shall be responsible for the administration of imposition of newly-built enterprise business corporate tax in cargo transport industry whereas local tax bureaus be responsible for issuing cargo transport invoice and that the provisions on rebate of business income tax in accordance with laws, regulation and rules were not clear whether the state tax bureau or local tax bureau should be responsible for its handling. After research, the notice is hereby given as follows:

I.

where the due rebate of business income tax of the taxpayer in carrying industry, which is charged by state tax bureaus for its imposition and administration and charged by local tax bureaus for issuing cargo transport invoice and universal invoice tax imposition, needs to be handled by the state tax bureaus in responsible in accordance with related laws, regulations and rules, the due rebate hereof may either setoff the next-year business income tax payable of the taxpayer or be handled after clearing settlement, provided that the rebate amount shall be not more than the amount of business income tax imposed by the state tax bureau in responsible of the tax year, or the exceeded part shall be rebated by the local tax bureau responsible for issuing cargo transport invoice.

II.

the rebate particulars of the aforesaid taxpayer shall be settled promptly on occasion of settlement clearance.

III.

in accordance with the relevant provisions in Notice of the State Administration of Taxation on Printing and Distributing Interim Measures on Checking and Verifying the Imposition of Business Income Tax (Guo Shui Fa [2000] No. 38), the tax authorities in responsible shall not reimburse the tax paid by the taxpayer who is subject to the imposition of business income tax and subsequently pays the tax for the issued cargo transport invoice.

IV.

the local tax authority in responsible shall, when turning over the imposed tax to the state taxes, shall apply the uniformed invoice of local tax system with the local tax bureau responsible for the checking, verifying and summarizing submitting to the upper tax authority of the account.

V.

all levels of state tax authorities and local tax authorities shall implement and strengthen the information switching system. The local tax authority in responsible shall convey to the state tax bureau the statistics about the business income tax turned over to state treasury; on occasion that the due business income tax exceeds the imposed part by the state tax bureau in responsible shall be handled by local tax bureau for its rebate particulars, the state tax bureau in responsible shall fill Confirmation Letter of Rebate (Tax-deductible) and delivers the statistics hereof to local tax bureau in responsible.

VI.

the detailed measures shall be made by all provincial state tax bureaus and local tax bureaus.

VII.

for the unsettled rebate of the previous years, provisions in the present Notice shall prevail.

The State Administration of Taxation

March 8, 2006