Laws of the People's Republic of China

REGULATIONS FOR TAXATION ON THE TRANSPORTATION
INCOME OF VESSELS OF FOREIGN NATIONALITY

(Issued by Ministry of Finance of the People's
Republic of China on June 21, 1974)

SUBJECT: TAXATION; TRANSPORTATION

ISSUING-DEPT: MINISTRY OF FINANCE

ISSUE-DATE: 06/21/1974

IMPLEMENT-DATE: 07/01/1974

LENGTH: 405 words

TEXT:

In pursuance of the decision of the State Council of the People's Republic of China, the "Reguations for Taxation on the Transportation Incomes of Vessels of Foreign Nationality" is hereby enacted and issued as follows:

(1) An industrial-commercial unified tax and an industrial-commercial income tax shall be levied on the gross transportation income (including the basic freight and various surcharges) derived from each voyage of a vessel of foreign nationality carrying outward cargo and/or passengers from a port of China. These two taxes shall be assessed together at the rate of three per cent (3%) of the gross income, of which two and a half per cent (2.5%) is the industrial commercial unified tax and a half per cent (0.5%) the industrial-commercial income tax. In addition, a local surcharge shall be levied at one per cent (1%) of the amount of the above tax assessment.

(2) The taxpayer shall be the carrier of each vessel of foreign nationality carrying outward cargo and/or passengers from a port of China. He shall report and pay the taxes to the Tax Bureau located at the port concerned as soon as possible and not later than thirty (30) days after the departure of the vessel from the port.

(3) In the case of the vessels of those countries which have signed "Maritime Transport Agreements" or other agreements with the Government of the People's Republic of China in which there are provisions for reciprocal reduction or exemption of taxes, the taxes on their transportation income shall be reduced or exempted according to the relevant provisions of those agreements.

(4) Where a taxpayer fails to report and pay the required taxes within the aforesaid time limit, a delay charge shall be imposed at one thousandth (0.1%) per day of the amount of the taxes due for the number of days delayed. Should a taxpayer evade or understate the tax payment, he is liable, besides making full payment of the amount of tax so evaded or understated, to a penalty up to five times of the said amount, depending on the seriouseness of the offence; in the case of a serious violation of these Regulations, the matter shall be dealt with by the authorities concerned according to law.

(5) The present Regulations shall come into force as from zero hour (local time), July 1, 1974.

The right of interpretation of the present Regulations rests with the Ministry of Finance of the People's Republic of China.