Notice of the Ministry of Commerce and the General Administration of Taxation on the Financial Leasing Business of Domestic Leasing Enterprises in 7 Pilot Free Trade Zones like Liaoning

To the commerce departments and the SAT office of Liaoning Province,Zhejiang Province,Henan Province,Hubei Province,Chongqing City,Sichuan Province,Shaanxi Province and Dalian City:

In order to implement the overall plan of the pilot free trade zones of Liaoning,Zhejiang,Henan,Hubei,Chongqing,Sichuan and Shaanxi(hereinafter referred to as the pilot free trade zone)and to support the financial leasing industry for active exploration and first try and to accelerate the development of the financial leasing industry,the notice is hereby issued regarding the domestic leasing enterprises in 7 free trade pilot zones engaged in financial leasing business:

I.According to the Notice of the Ministry of Commerce and State Administration of Taxation on the financing lease business and other related issues(SJF[2004]No.560,hereinafter referred to as No.560),the Ministry of Commerce and the State Administration of Taxation are responsible for the confirmation of the pilot of domestic leasing enterprises engaging in financial leasing business.Since 15 June,2017,the Ministry of Commerce and the State Administration of Taxation will entrust the commerce department of the provinces and municipalities and the state administration of taxation with the confirmation of the financial leasing business pilot of the domestic leasing enterprises registered in free trade zone.The conditions and application materials of the pilot enterprises should be prepared in accordance with the document No.560.The domestic leasing enterprises not registered in the pilot free trade zone engaged in the financing lease business should be processed according to current rules and procedures.

II.The provincial commerce department of the pilot free trade zone and the state administration of taxation at the same level should review the materials submitted by the pilot financing lease enterprises.The provincial commerce department and the state administration of taxation will jointly issue a notice to include the eligible enterprises into the list of domestic financing lease pilot enterprises,which will enjoy the same treatment with the domestic financing lease pilot enterprises in the list issued by the Ministry of Commerce and State Administration of Taxation.

III.The provincial commerce department shall guide and supervise the pilot enterprises to submit the information through the national financing lease enterprise management information service platform(hereinafter referred to as Information service platform)and shall review such information timely;at the end of every month,the data of the enterprises included into the pilot scope should be submitted to the Ministry of Commerce and forwarded to the State Administration of Taxation;in each quarter,the pilot work progress should be submitted to the Ministry of Commerce and forwarded to the State Administration of Taxation;at the end of each year,the enterprise should be urged to fill in the annual report as soon as possible;the problems existing in the information service and information regulation should be researched timely and solved actively;and meanwhile,the problems should be reported to the Ministry of Commerce and the State Administration of Taxation.

IV.According to the division of labor of the provincial people’s government,the provincial commerce department should strengthen the supervision in and after the process based on industry management duties and should provide real time supervision of enterprises conducting business in accordance with the law;the combination of on-site and off-site supervision means should be applied;the role of the information service platform should be given full play;the risk monitoring,analysis and early warning should be strengthened;the regional and systemic risks should be prevented.

V.The enterprises included into the pilot scope should abide by the laws,regulations,rules and the provisions of Financing Lease Enterprise Supervision and Management Measures and should accept the supervision of the competent department;and also,such enterprises should submit the information timely and accurately through the information service platform and should pay the taxes on time.For the pilot enterprises that didn’t carry out the financing lease business within the fiscal year and that have the violation behavior,the provincial commerce department and the state administration of taxation at the same level should agree to the cancellation of its pilot qualifications.

VI.To facilitate the regulation,if the enterprise included in the pilot scope in accordance with these requirements moves out of the free trade zone,such enterprise should re-apply for the pilot qualification as an enterprise outside the free trade zone.

VII.According to the provisions of this notice,the provincial commerce department should discuss with the state administration of taxation at the same level,to develop the specific pilot confirmation measures or process,which should be announced in appropriate form.

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