Circular on the Value-added Tax Policies for Financial, Real Estate Development, Education Ancillary Services and Other Sectors
Circular on the Value-added Tax Policies for Financial, Real Estate Development, Education Ancillary Services and Other Sectors
Circular on the Value-added Tax Policies for Financial, Real Estate Development, Education Ancillary Services and Other Sectors
Cai Shui [2016] No.140
December 21, 2016
Finance departments (bureaus), SAT offices and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, and Financial Bureau of Xinjiang Production and Construction Corps,
The policies relating to finance, real estate development, education ancillary services, etc. during the pilot program of collection of value-added tax (VAT) in lieu of business tax (BT) are additionally announced as follows:
I. The "income, returns, payment for holding of funds, and compensation under principal-guaranteed terms" mentioned in Sub-item 1 of Article 1.5 of the Explanatory Notes on the Sale of Services, Intangible Assets and Real Estate (Cai Shui [2016] No.36) refer to all types of investment income recoverable on the principal upon maturity as expressly promised under the contract. Any such income earned not under principal-guaranteed terms in the holding period (including the maturity date) of a financial commodity is not deemed interest or interest income and is not subject to VAT.
II. The purchase by a taxpayer of a fund, trust, financial management or any other of the various asset management products that is held to maturity by the same taxpayer does not fall inside the scope of transfer of financial commodities defined in Sub-item 4 of Article 1.5 of the Explanatory Notes on the Sale of Services, Intangible Assets and Real Estate (Cai Shui [2016] No.36).
III. Interest receivable (but overdue) incurred within 90 days from a due date for interest payment on a loan issued by a securities company, insurance company, financial lease company, securities fund management company, securities investment fund or any other institution approved to be established to operate a financial or insurance business by the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission or the China Insurance Regulatory Commission, shall be subject to VAT in accordance with the existing provisions, and interest receivable (but overdue) incurred after 90 days from a due date for interest payment is not subject to VAT for the time being, but shall be subject to VAT upon the actual receipt thereof in accordance with the applicable provisions.
IV.
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Cai Shui [2016] No.140
December 21, 2016
Finance departments (bureaus), SAT offices and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, and Financial Bureau of Xinjiang Production and Construction Corps,
The policies relating to finance, real estate development, education ancillary services, etc. during the pilot program of collection of value-added tax (VAT) in lieu of business tax (BT) are additionally announced as follows:
I. The "income, returns, payment for holding of funds, and compensation under principal-guaranteed terms" mentioned in Sub-item 1 of Article 1.5 of the Explanatory Notes on the Sale of Services, Intangible Assets and Real Estate (Cai Shui [2016] No.36) refer to all types of investment income recoverable on the principal upon maturity as expressly promised under the contract. Any such income earned not under principal-guaranteed terms in the holding period (including the maturity date) of a financial commodity is not deemed interest or interest income and is not subject to VAT.
II. The purchase by a taxpayer of a fund, trust, financial management or any other of the various asset management products that is held to maturity by the same taxpayer does not fall inside the scope of transfer of financial commodities defined in Sub-item 4 of Article 1.5 of the Explanatory Notes on the Sale of Services, Intangible Assets and Real Estate (Cai Shui [2016] No.36).
III. Interest receivable (but overdue) incurred within 90 days from a due date for interest payment on a loan issued by a securities company, insurance company, financial lease company, securities fund management company, securities investment fund or any other institution approved to be established to operate a financial or insurance business by the People's Bank of China, the China Banking Regulatory Commission, the China Securities Regulatory Commission or the China Insurance Regulatory Commission, shall be subject to VAT in accordance with the existing provisions, and interest receivable (but overdue) incurred after 90 days from a due date for interest payment is not subject to VAT for the time being, but shall be subject to VAT upon the actual receipt thereof in accordance with the applicable provisions.
IV.
......