ANNOUNCEMENT 31 Aug 2016
August 31st, 2016 - The Chinese government announced a new preferential tax policy for certain transport vessels.
NUMBER OF INTERVENTIONS
PRC State Taxation Administration, August 31st, 2016. (财关税〔2016〕42号 关于中资“方便旗”船回国登记进口税收政策问题的通知)
On August 31st, 2016, three Chinese ministries jointly released Caiguanshui 2016/42 (hereafter, 'Announcement'), which implemented a policy allowing certain ships using a Chinese flag of convenience whose investment capital is at least 50% Chinese to be granted exemptions from import tariffs when entering China.
This represents a sector-specific import tariff reduction for all products for firms in the shipping sector.
The Announcement states that the scheme will operate until 2019.
Subsequent releases revealed which ships successfully achieved this exempt status; please see related acts for more.
The Chinese State Administration of Taxation's Caiguanshui 2016/42 issued on 16 August 2016 instituted a policy which granted import tariff exemptions for majority Chinese-funded ships using a Chinese flag of convenience.
It also granted import VAT exemptions for goods imported with such vessels. This constitutes a selective preferential tax policy for such imports.
Please refer to the other intervention pertaining to this state act for more information on the policy.
The policy was stated to be in effect from September 2016 to September 2019.