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	ANNOUNCEMENT OF CHINESE MINISTRY OF FINANCE ON TAXATION ON REVENUE OF FOREIGN FREIGHT AND PASSENGER SHIPS

	(Issued by the Ministry of Finance on February 26, 1982)


SUBJECT : TAXATION; REVENUE; FOREIGN FREIGHT AND PASSENGER SHIPS
ISSUING DEPARTMENT : MINISTRY OF FINANCE OF THE PEOPLE'S REPUBLIC OF CHINA
ISSUE DATE : 02/26/1982
IMPLEMENT DATE : 04/30/1982
LENGTH : 283 words
TEXT :

With the promulgation of the Income Tax Law of the PRC Concerning Foreign Enterprises and detailed rules and regulations for its implementation, regulations for taxation on the transportation incomes of vessels of foreign nationalities should be changed accordingly. To facilitate the implementation, an announcement is hereby made:

(1) The "Regulations for Taxation on the Transportation Incomes of Vessels of Foreign Nationalities", promulgated on June 21, 1974, will remain in force as far as tax declaration, reduction and exemption and the handling of defaults are concerned.

(2) The income tax of a foreign ship from freight and passenger transport shipping in Chinese ports should be paid according to the provisions of the Income Tax Law Concerning Foreign Enterprises. And according to Article 25 of the detailed rules and regulations for the implementation of the above law, 5% of the total revenue of a foreign ship from freight and passenger transport shipping in Chinese ports will be considered taxable income.

It is calculated that for a foreign ship producing revenue of less than 5 million yuan in each shipment, the total tax burden will be 4.024% of the total revenue. This includes 1% for income tax, 0.5% for local income tax, 2.5% for consolidated industry and commercial tax plus 0.025% for local surtax. In order to simplify the procedures for the collection of taxes as mentioned above, the rate for the overall tax burden shall be used.

(3) According to Article 14 of the Foreign Enterprise Income Tax Law, in the event that the income tax and the local income tax are not paid within the prescribed time limit, a fine of 0.5% of the overdue tax payment will be imposed on a daily basis.