Notice of State Administration of Taxation about Enforcement and Implementation of Letters of Exchange between Sri Lanka and China Concerning Mutual Exemption of Indirect Taxes on International Air Transport Income Forwarded by Beijing Local Taxation Bureau
Jing Di Shui Fa[2005]No. 167

  
To the local taxation bureau and sub-bureau of each district and county, and each department and unit directly under Beijing Local Taxation Bureau:
　　Notice of State Administration of Taxation about Enforcement and Implementation of Letters of Exchange between Sri Lanka and China Concerning Mutual Exemption of Indirect Taxes on International Air Transport Income (Guo Shui Fa 2005ヽNo. 38) is hereby forwarded to you, please follow and implement it.
Apr 14, 2005

Notice of State Administration of Taxation about Enforcement and Implementation of Letters of Exchange between Sri Lanka and China Concerning Mutual Exemption of Indirect Taxes on International Air Transport Income
Guo Shui Fa[2005]No. 38
To the tax office SAT and local tax bureau of each province, autonomous region, municipality directly under the Central government and city directly under State planning:
　　Notice of State Administration of Taxation about Enforcement and Implementation of Letters of Exchange between Sri Lanka and China Concerning Mutual Exemption of Indirect Taxes on International Air Transport Income (see the Annex) becomes effective and is implemented from Mar 1, 2005.
　　Annex: Letters of Exchange between the Democratic Socialist Republic of Sri Lanka and the People¨s Republic of China Concerning Mutual Exemption of Indirect Taxes on International Air Transport Income
Mar 18, 2005.
Annex: Letters of Exchange between the Democratic Socialist Republic of Sri Lanka and the People¨s Republic of China Concerning Mutual Exemption of Indirect Taxes on International Air Transport Income
Xie Xuren
Director of State Administration of Taxation
5, West Yangfangdian Road, Haidian District, Beijing
The People¨s Republic of China
Your Excellency,
　　I have the honor of mentioning the negotiation, through diplomatic channels, on exemption of income taxes and other indirect taxes levied by the People¨s Republic of China for the aviation enterprises (specified by the government of the Democratic Socialist Republic of Sri Lanka and the government of the People¨s Republic of China) operating air transport business in the People¨s Republic of China.
　　In view of that Sri Lanka currently does not levy indirect taxes like business tax on international air transport business, I hereby propose the following arrangement:
　　1. Business taxes and all indirect taxes on the gross income and (or) turnover received from the People¨s Republic of China by the aviation enterprises specified by the Democratic Socialist Republic of Sri Lanka to operate air transport business and air transport sales transaction in the People¨s Republic of China should be exempted.
　　2. The above paragraph is also applicable to the income of aviation enterprises specified by the People¨s Republic of China to operate air transport business and air transport marketing in the Democratic Socialist Republic of Sri Lanka.
　　If Your Excellency accept the above articles, I have the honor of suggesting that this letter and the official written letter of reply of Your Excellency about confirming that the People¨s Republic of China accepts the above proposals raised by the Democratic Socialist Republic of Sri Lanka will be deemed as an understanding between the taxation authorities of the two countries. And such understanding will become effective on the date of receipt of the official written letter of reply of Your Excellency.
　　Best regards.
　　Franks，Pa，Li，He Weilaxin .
　　Director of Internal Revenue Service
　　The Democratic Socialist Republic of Sri Lanka
　　Jan 27, 2005
Franks，Pa，Li，He Weilaxin .
Director of Internal Revenue Service
The Democratic Socialist Republic of Sri Lanka

Your Excellency,
　　I have the honor of receiving your letter of reply on Jan 27, 2005, and the contents are as the follows:
＾Your Excellency,
　　I have the honor of mentioning the negotiation, through diplomatic channels, on exemption of income taxes and other indirect taxes levied by the People¨s Republic of China for the aviation enterprises (specified by the government of the Democratic Socialist Republic of Sri Lanka and the government of the People¨s Republic of China) operating air transport business in the People¨s Republic of China.
　　In view of that Sri Lanka currently does not levy indirect taxes like business tax on international air transport business, I hereby propose the following arrangement:
　　1. Business taxes and all indirect taxes on the gross income and (or) turnover received from the People¨s Republic of China by the aviation enterprises specified by the Democratic Socialist Republic of Sri Lanka to operate air transport business and air transport sales transaction in the People¨s Republic of China should be exempted.
　　2. The above paragraph is also applicable to the income of aviation enterprises specified by the People¨s Republic of China to operate air transport business and air transport marketing in the Democratic Socialist Republic of Sri Lanka.
　　If Your Excellency accept the above articles, I have the honor of suggesting that this letter and the official written letter of reply of Your Excellency about confirming that the People¨s Republic of China accepts the above proposals raised by the Democratic Socialist Republic of Sri Lanka will be deemed as an understanding between the taxation authorities of the two countries. And such understanding will become effective on the date of receipt of the official written letter of reply of Your Excellency.
Best regards.￣
　　I hereby agree the suggestions proposed in the received letter on behalf of the government of the People¨s Republic of China.
　　And on such occasion, I would like to pay my sincere respect to Your Excellency.
　　Xie Xuren
　　Director of State Administration of Taxation P.R.C.
　　Mar 1, 2005