Notice on the Management Approach of Export Tax Rebate for Finance Leasing Vessels

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TIANJIN, May 28 – The State Administration of Taxation recently issued a notice regarding the management approach to export tax rebates for finance leasing vessels, effective April 1.

Guoshuifa [2010] No. 52, issued on May 18, stipulates the export tax rebate scope, requirements and calculating method for finance leasing vessels, in accordance with circular Caishui [2010] No. 24. Enterprises which engage in the finance leasing vessel business should provide the following items to tax authorities within 30 days of the finance leasing contract coming into effect: finance leasing business licenses, finance leasing contract (in Chinese) and other required documents from local tax authorities, in addition to the application for the export tax rebate.

For an early purchase of finance leasing vessels, enterprises should apply for the tax rebate within 15 days after each quarter ends; for a late purchase, enterprises should apply for the one-time tax rebate 90 days after the ownership of the finance leased vessel is transferred.

For finance leasing enterprises which are also VAT general taxpayers, the tax authorities will process the tax rebate after confirming the VAT invoices have no errors. For non-VAT general taxpayers, the tax authorities will issue notices to check invoices and the tax status of the vessels listed in the invoices before processing the tax rebate.