Circular of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Business Tax Returns of the Finance and Insurance Industries

Circular of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Business Tax Returns of the Finance and Insurance Industries

Guo Shui Fa [2002] No. 9

January 30, 2002

To the state taxation bureaus and the local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan:

The Administrative Measures for Business Tax Returns of the Finance and Insurance Industries are hereby issued to you and shall come into effect as of February 1, 2002. Circular of the State Administration of Taxation on Printing and Distributing the Interim Administrative Measures for Business Tax Returns of the Finance and Insurance Industries (Guo Shui Fa [2000] No. 15) shall be repealed simultaneously.

Owing to the fact that the state taxation bureaus of various regions (excluding the Beijing Municipal Office of the State Administration of Taxation) will cease the collection and administration of business tax of the finance and insurance industries at the end of year 2002, the local taxation bureaus of all regions shall be responsible for implementing the Measures for the Administration of Business Tax Returns of the Finance and Insurance Industries and the state taxation bureaus of all regions shall cooperate with them.

As the printing and distributing of the Administrative Measures for Business Tax Returns of the Finance and Insurance Industries is a significant measure for strengthening the administration of business tax, promoting the informationization and modernization of the administration of business tax and ensuring the business tax revenue and the accomplishment of the taxation task for the year 2002, tax authorities of all regions must place great emphasis and take effective measures to ensure the successful implementation of this policy.

Appendix: Circular of the State Administration of Taxation on Printing and Distributing the Administrative Measures for Business Tax Returns of the Finance and Insurance Industries

Chapter I General Provisions

Article 1 These Measures are formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the Tax Collection Administration Law), the Interim Regulations of the People's Republic of China on Business Tax (hereinafter referred to as the Regulations), the Detailed Rules for the Implementation of the Interim Regulations on the Business Tax of the People's Republic of China (hereinafter referred to as the Detailed Rules), the Circular of the Ministry of Finance and the State Administration of Taxation on Taxation Issues Concerning the Business Tax of the Finance Industry (Cai Shui Zi [1995] No. 79) and other relevant regulations.

Chapter II Scope of Application

Article 2 The taxpayers and the tax withholding agents of business tax in the finance and insurance industries shall be governed by these Measures.

Article 3 Taxpayers in the finance and insurance industries refer to:
1. Banks, including people's banks, commercial banks and policy banks;
2. Credit cooperatives;
3. Securities Companies;
4. Finance leasing companies, securities fund management companies, financial companies, trust and investment companies, and securities investment funds; and
5. Insurance companies; and
6. Other institutions established under the approval of the People's Bank of China, China Securities Regulatory Commission and China Insurance Regulatory Commission and engaged in finance or insurance business.

Article 4 Tax withholding agents are financial institutions entrusted to provide loans.

Chapter III Taxation Scope of the Finance and Insurance Industries

Article 5 Lending means the business to provide non-gratuitous funds to others (including discount and documentary bills).
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