The local taxation bureau of Guangdong Province
¡¡¡¡The Request for Instructions on the Issue Regarding Turnover Taxes Levied on the Transportation Businesses in Enforcing the Arrangements of the Mainland and the Macao Special Administrative Region on Avoiding Double Taxation on Income and on Tax Evasion (Yue Di Shui Fa [2005]No. 15 ) has been received, and the reply on the issue of turnover taxes levied on the transportation businesses operated by Macao enterprises in the Mainland is hereby given as follows:
¡¡¡¡Paragraph 1 of Article 8 of the Arrangements of the Mainland and the Macao Special Administrative Region on Avoiding Double Taxation on Income and on Tax Evasion, which provides that ¡°the taxes levied on the incomes and profits obtained by enterprises of one party from transportation businesses by operating vessels, airplanes or overland vehicles within the jurisdiction of the other party shall be exempted by the said other party¡±, may be implemented by referring to Paragraph 1 of Article 2 of the Arrangements of the Mainland and the Hong Kong Special Administrative Region on Avoiding Double Taxation on Income and on Tax Evasion, which provides that ¡°the taxes collected on the incomes and profits obtained by enterprises of one party from transportation businesses by operating vessels, airplanes or overland vehicles within the jurisdiction of the other party shall be exempted by the said other party (including the turnover taxes for the mainland)¡±. In regard to incomes obtained by Macao enterprises from transportation businesses by operating vessels, airplanes or overland vehicles, the tax exemption treatment granted by the Mainland shall include the exemption of turnover taxes. |
