Circular of the State Administration of Taxation on Several Issues concerning Tax Policies for Offshore Oil

Circular of the State Administration of Taxation on Several Issues concerning Tax Policies for Offshore Oil

Guo Shui Fa [1997] No. 44

March 27, 1997

In order to further improve the foreign oil tax system and resolve the problems existing in the implementation of the current policies, several issues concerning the tax policies for offshore oil are hereby clarified as follows:

I. Tax issues concerning the offshore oil projects contracted and labor service provided by foreign contractors in China
In respect of offshore oil project operation contracted and labor service provided by foreign contractors in China, the calculation and collection of business tax shall be subject to the Tentative Provisions of the People's Republic of China on Business Tax and its detailed rules for the implementation. In respect of taxable labor service contracted by foreign contractors, in case the labor service takes place both inside and outside China, the tax shall be collected only on the taxable labor service taking place within China upon the examination and approval of the competent tax authorities.

II. Tax issues concerning the sold commodities of foreign contractors in China
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