Circular on Several Policies concerning the Exemption of Business Tax Levied on the Sale of Financial Products by Individuals and on Other Transactions
Circular on Several Policies concerning the Exemption of Business Tax Levied on the Sale of Financial Products by Individuals and on Other Transactions
Circular on Several Policies concerning the Exemption of Business Tax Levied on the Sale of Financial Products by Individuals and on Other Transactions
Cai Shui [2009] No.111
September 27, 2009
To the financial departments (bureaus) and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, the state taxation bureaus of Beijing, Tibet, Ningxia, Qinghai provinces (autonomous regions or municipalities) and the financial bureau of Xinjiang Production and Construction Corps,
Upon approval by the State Council, we hereby clarify relevant business tax incentives as follows:
I. Income earned by individuals (including individual business households and other individuals, the same below) from the sale of foreign exchanges, securities, non-goods futures and other financial products may be exempted from business tax for the time being.
II. Free donations of real estates and land use rights may be exempted from business tax for the time being under any of the following circumstances:
1. Division of properties in divorce;
2. Free donation to spouse, parents, children, grandparents, maternal grandparents, grandchildren, maternal grandchildren, brothers or sisters;
3. Free donation to those who are directly obliged to support or raise the donator; or
4. Inheritance by legitimate heirs, testamentary successors or legatees of the ownership of houses whose owner is deceased.
III. Labor services relating to the construction industry or the culture and sports industry (except broadcasting) provided outside the territory of the People's Republic of China (hereinafter referred to as "outside China") by units or individuals residing within the territory of the People's Republic of China (hereinafter referred to as "inside China") may be exempted from business tax for the time being.
IV.
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