CMS, China | Chinese Tax Regulation Update | Janu
ary & February 2021




CMS, China

Dear Sir or Madam,

Since there have been only a limited number of important new regulations issued by the Chinese State Administration of Taxation since the beginning of this year, we have combined the monthly tax rules update of January 2021 and of February 2021 together. Enjoy your reading.

Kind regards,
CMS, China

Circular
Number
Issuance
Date
Effective
Date
Topic What is new?

Cai Guan Shui [2020] No. 54

2020-12-25 2020-12-25 "Zero Tariff" policy on transportation tools and yachts in the Hainan Free Trade Port The Circular clarifies the "zero tariff" policy on transportation tools and yachts in the Hainan Free Trade Port (“FTP”). The key points that are worth attention of the Circular mainly include the following:

Prior to the independent customs operations throughout Hainan Island, the import of ships, aircraft, vehicles and other operational means of transport and yachts used for transport and tourism by legal person enterprises which are registered in the Hainan FTP engaged in transport and tourism (and aviation companies which must, in addition to the conditions above, take the Hainan FTP as the main operating base) can be exempt from import duty, import VAT and Consumption Tax.
   
Means of transport and yachts which are subject to "zero tariff" policy shall be administered under a positive list, which will be dynamically adjusted as per Hainan's actual needs and regulatory conditions. Transfer of the "zero tariff" means of transport and yachts shall be approved by the Customs office and if the transferee does not qualify for the "zero tariff" policy, import taxes shall be made up.
Caishui [2021] No. 3 2021-01-13 2021-01-01 VAT policies in Lingang New Area of Shanghai Pilot Free Trade Zone The Circular has modified the VAT policies in Caishui [2018] No. 5 ("Circular 5") and clarify a VAT exemption policy for the enterprises registered in the Yangshan Special Comprehensive Free Trade Zone (“Yangshan SCFTZ”). The details are as follows:

Expand the scope of the intermediate ports mentioned in Item 3 of Article 2 of Circular 5 to all the ports of departure as mentioned in Item 1 of Article 2 of Circular 5. Now ships carrying goods subject to the policy of tax refund at the ports of departure may stop at all intermediate ports for loading additional goods.
   
Add the stipulation that hazardous goods shall not be subject to the policy of tax refund at the ports of departure.
   
The incomes received by the enterprises registered in the Yangshan SCFTZ for providing transportation services, loading, unloading and carrying services and warehousing services in the Yangshan SCFTZ can be exempt from VAT.

This information is provided for general information purposes only and does not constitute legal or professional advice.  Copyright by CMS, China.

For further information, please contact:

Gilbert Shen
Counsel
Head of Tax Practice Area Group
CMS, China
T
+86 21 6289 6363

F
+86 21 6289 0731
E
gilbert.shen@cmslegal.cn

 


This information is provided for general information purposes only and does not constitute legal or professional advice. Copyright by CMS, China.

CMS, China
“CMS, China” should be understood to mean the representative offices in Mainland China of CMS Cameron McKenna Nabarro Olswang LLP, CMS Francis Lefebvre Avocats and CMS Hasche Sigle, working together. CMS, China is a member of CMS Legal Services EEIG, a European Economic Interest Grouping that coordinates an organisation of independent member firms. CMS Legal Services EEIG provides no client services. Such services are solely provided by the member firms in their respective jurisdictions.

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