27.09.10 13:55 Age: 14 yrs

Direct Aviation Business Between Mainland And Taiwan To Enjoy Tax Preference

LEHMAN, LEE & XU

 

The Ministry of Finance has recently published a notice to clarify policies on business tax and enterprise income tax in direct aviation between the Chinese Mainland and Taiwan. According to this new rule, from 25 June 2009, incomes of Taiwan airline companies received in the Chinese Mainland from their direct aviation business between the Chinese Mainland and Taiwan shall be exempt from business tax. Any business tax that should not be collected but has already been paid by any Taiwan airline company from 25 June 2009 to the date of receiving this document shall offset its business tax payable afterwards; if the business tax that has been collected is more than the business tax payable for the remaining period within 2010, the excessive tax payment shall be refunded. In addition, from 25 June 2009, income of Taiwan airline companies received in the Chinese Mainland from their direct aviation business between the Chinese Mainland and Taiwan shall be exempt from enterprise income tax. Any enterprise income tax that should not be collected but has already been paid by any Taiwan airline company from 25 June 2009 to the date of receiving this document shall be refunded within 2010.

 

“This is good news and it will further enhance the businesses across the Taiwan Straits,” commented Edward E. Lehman, managing Director of Lehman, Lee & Xu.