Circular of the State Administration of Taxation on the Imposition of Turnover Tax on Financial Leasing

Circular of the State Administration of Taxation on the Imposition of Turnover Tax on Financial Leasing

Guo Shui Han [2000] No. 514

July 7, 2000

Based on the information available, the policies implemented in different regions on the imposition of turnover tax on finance leasing vary to some extent. Some regions impose value added tax, and others impose business tax. In order to standardize policy on value assed tax and ensure that the law is strictly implemented, we hereby clarify the relevant issues as follows:

For finance leasing undertaken by units authorized by the People's Bank of China to engage in such business, regardless of whether title to the goods concerned is transferred to the lessee, all such activities shall be subject to business tax in accordance with the relevant provisions of the Interim Regulations of the People's Republic of China on Business Tax, and value added tax shall not be payable.
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