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	CIRCULAR OF THE MINISTRY OF FINANCE AND THE STATE ADMINISTRATION OF TAXATION ON TAX POLICIES ABOUT THE DEREGISTERED FINANCIAL INSTITUTIONS

	(No.141 (2003) of the Ministry of Finance and the State Administration of Taxation promulgated on July 3, 2003 and implemented as of the effective date of "Regulations for Deregistration of Financial Institutions")


SUBJECT : DEREGISTERED FINANCIAL INSTITUTIONS
ISSUING DEPARTMENT : STATE ADMINISTRATION OF TAXATION, MINISTRY OF FINANCE OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 07/03/2003
IMPLEMENT DATE : 12/15/2001
LENGTH : 480 words
TEXT :

According to Article 21 of the Regulations for Deregistration of Financial Bodies and with a view to promoting property settlement activities of deregistered financial bodies, to strengthening supervision and management to financial activities, and to keeping financial order, the present circular on relevant preferential tax policies to be applied during sort-out and disposal of property of a deregistered financial body is issued as follows:

I. Those who enjoy preferential tax policies refer to financial bodies and their local branches deregistered on the basis of the decision of the People's Bank of China according to law, including commercial banks, trust companies, financial companies, financial leasing companies, urban and rural credit cooperatives deregistered according to law. Enterprises belonging or pertaining to the deregistered financial bodies cannot enjoy the preferential tax policies stipulated in this circular, except laws, regulations and rules otherwise require.

II. A deregistered financial body may enjoy the following preferential tax policies during its property settlement:

(1) The stamp tax for the quitclaim deeds concluded by the deregistered financial body while taking over creditor's rights and paying debts may be exempted.

(2) The estate tax, urban land usage tax, and vehicle and vessel usage tax for the real estate and vehicles of the deregistered financial body itself or took over from the debtor during the period of property settlement may be exempted.

(3) The deed tax for the property right transfer of land-use right and housing ownership taken over from the debtor by the deregistered financial body by claiming its creditor's rights during the period of property settlement may be exempted.

(4) The value-added tax, sales tax, urban construction tax, educational surtax and land value-added tax for the transfer of cargoes, real estates, intangible properties, securities and bills by the deregistered financial body when paying its debts may be exempted.

III. Taxes that should be paid for sustained commercial businesses operating during the period from the beginning to the end of the property settlement of the deregistered financial body shall be paid according to relevant regulations unless it is otherwise required by Article 2 of the present Circular.

IV. Taxes and other funds that the deregistered financial body should pay but has not paid to the State shall be paid according to the payment sequence stipulated in laws and regulations.

V. The business income tax for the income of the property settlement of the deregistered financial body shall be paid according to law.

VI. This circular shall be implemented as of the day when the Regulations for Deregistration of Financial Institutions becomes effective. The tax policies in this circular shall be applicable to the matters involved during the property settlement of the deregistered financial body as of this day. Taxes ought to be paid before the promulgation of this circular but exempted now need not be paid any more, while those that have been paid already will not be reimbursed.