Local taxation bureaus and sub-bureaus in each district and county and offices and units under city bureaus,
　　We now forward to you the Notice of the State Administration of Taxation on Exchange of Letters for Enforcement of Mutual Exempt from the Indirect Tax for International Air Transportation Revenue between China and Sri Lanka (G. S. F. [2005] No. 38). Please implement it.


　　Apr. 14, 2005


Document of the State Administration of Taxation
G. S. F. [2005] No. 38

　　Notice of the State Administration of Taxation on Exchange of Letters for Enforcement of Mutual Exempt from the Indirect Tax for International Air Transportation Revenue between China and Sri Lanka
　　Municipal taxation bureaus under the State Administration of Taxation and local taxation bureaus in each province, autonomous region, municipal and city directly under the state planning,
　　The exchange of letters on mutual exemption from the indirect tax for international air transportation revenue between the government of the People’s Republic of China and the government of the Democratic Socialist Republic of Sri Lanka (see the enclosure) shall come into effect as of March 1, 2005.


　　Enclosure: The exchange of letters on mutual exemption from the indirect tax for international air transportation revenue between the government of the People’s Republic of China and the government of the Democratic Socialist Republic of Sri Lanka

　　March 18, 2005

　　Enclosure:
　　The exchange of letters on mutual exemption from the indirect tax for international air transportation revenue between the government of the People’s Republic of China and the government of the Democratic Socialist Republic of Sri Lanka
　　Xie Xuren, Director of the State Administration of Taxation
　　No. 5, Yangfangdianxi Road, Haidian District, Beijing
　　P.R.C.

　　Dear Sir, 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　Jan. 27, 2005
　　I’m honored to mention the negotiation through diplomatic channels on the airline enterprises appointed by the government of the Democratic Socialist Republic of Sri Lanka that are engaged in air transportation in the People’s Republic of China being exempted from the business tax and other indirect tax collected by the People’s Republic of China.
　　Considering that Sri Lanka at present does not collect indirect tax similar with the business tax for the international air transportation businesses, I hereby propose the following arrangements:
　　I. The airline enterprises appointed by the government of the Democratic Socialist Republic of Sri Lanka that are engaged in air transportation and sales of air transportation in the People’s Republic of China may be exempted from the business tax and all of the indirect tax collected for the gross revenue and (or) business circulation obtained in the People’s Republic of China.
　　II. The tax exemption mentioned in the above Article I is also applied to the revenue obtained in the Democratic Socialist Republic of Sri Lanka from the air transportation and sales of air transportation by the airline enterprises appointed by the government of the People’s Republic of China.
　　If you accept the above articles, I will have the honor to suggest this letter and your confirmation that the reply letter on the government of the people’s republic of China accepting the above scheme proposed by the government of the Democratic Socialist Republic of Sri Lanka be regarded as an understanding between the state administrations of taxation of the two countries. This understanding shall come into effect as of the date of your reply.

　　Best Wishes

　　RPL Weerasinghe
　　Director of Internal Revenue Service, the Democratic Socialist Republic of Sri Lanka

　　RPL Weerasinghe
　　Director of Internal Revenue Service, the Democratic Socialist Republic of Sri Lanka


　　Dear Sir,　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 Mar. 1, 2005
　　I’m honored to receive your letter on Jan. 27, 2005 as follows:
　　“Dear Sir, 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　 Jan. 27, 2005
　　I’m honored to mention the negotiation through diplomatic channels on the airline enterprises appointed by the government of the Democratic Socialist Republic of Sri Lanka that are engaged in air transportation in the People’s Republic of China being exempted from the business tax and other indirect tax collected by the People’s Republic of China.
　　Considering that Sri Lanka at present does not collect indirect tax similar with the business tax for the international air transportation businesses, I hereby propose the following arrangements:
　　I. The airline enterprises appointed by the government of the Democratic Socialist Republic of Sri Lanka that are engaged in air transportation and sales of air transportation in the People’s Republic of China may be exempted from the business tax and all of the indirect tax collected for the gross revenue and (or) business circulation obtained in the People’s Republic of China.
　　II. The tax exemption mentioned in the above Article I is also applied to the revenue obtained in the Democratic Socialist Republic of Sri Lanka from the air transportation and sales of air transportation by the airline enterprises appointed by the government of the People’s Republic of China.
　　If you accept the above articles, I will have the honor to suggest this letter and your confirmation that the reply letter on the government of the people’s republic of China accepting the above scheme proposed by the government of the Democratic Socialist Republic of Sri Lanka be regarded as an understanding between the state administrations of taxation of the two countries. This understanding shall come into effect as of the date of your reply.
　　Best Wishes,”
　　I hereby, on behalf of the government of the People’s Republic of China, accept your suggestion proposed in your letter

　　Best Wishes,

　　Xie Xuren, Director of the State Administration of Taxation, P.R.C.