Tentative Administrative Measures for the Imposition of Business Tax on the Cargo Transportation Industry
Tentative Administrative Measures for the Imposition of Business Tax on the Cargo Transportation Industry
Tentative Administrative Measures for the Imposition of Business Tax on the Cargo Transportation Industry
Guo Shui Fa [2003] No. 121 Attachment 1
October 17, 2003
Article 1 In order to further implement the decision of the State Council on regulating economic order and to strengthen the administration of business tax imposition in the cargo transport industry, the present Measures are hereby formulated in accordance with the Law of the People's Republic of China on the Administration of Tax Levying and Implementing Rules, the Interim Regulations of the People's Republic of China on Business Tax and the Implementing Rules, the Administrative Measures of the People's Republic of China for Invoices, and other relevant laws and regulations.
Article 2 The present Measures shall apply to any entity or individual that provides road or inland water cargo transport services (hereinafter referred to as "cargo transport services") within the People's Republic of China.
Article 3 Entities and individuals providing cargo transport services within the People's Republic of China are taxpayers of "transportation industry" business tax.
The term "individuals" as used above refers to individual industrial and commercial operators and other individuals conducting business activities.
In the event of provision of cargo transport service through contracting, leasing, or affiliating, if the following conditions are all simultaneously satisfied, the contract issuer, lesser, and the party to which another party is a nominal affiliate (hereinafter referred to as the "party being affiliated") shall be the taxpayer of business tax. If the following conditions are not all simultaneously satisfied, the contractor, lessee, and the party nominally affiliating to another party shall be the taxpayer of business tax (hereinafter referred to as "contractor", "lessee" and "affiliate").
1. The service is provided in the name of the contract issuer, lesser, and the party being affiliated, who will assume all relevant legal responsibilities,
2. Business income and expenditures are all included in the financial accounting of the contract issuer, lesser, and the party being affiliated, and
3. The distribution of benefits is based on the profits of the contract issuer, lesser, and the party being affiliated.
Article 4 Entities and individuals providing cargo transport services are divided into invoice issuing taxpayers and taxpayers using issued invoices according to the way by which the cargo transport invoices are issued.
The term "invoice issuing taxpayers" refers to qualified taxpayers that apply to the competent local taxation bureaus for obtaining and purchasing, and self-issuing cargo transport invoices.
Invoice issuing taxpayers do not include individuals, contractors, lessees, and affiliates.
The term "taxpayers using issued invoices" refers to entities and individuals, other than invoice issuing taxpayers, who need agent invoice issuing entities to issue cargo transport invoices for them.
The term "agent invoice issuing entities" as used above refers to the competent local taxation bureaus.
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