Districts and counties local taxation Bureaus and sub-bureaus, departments of Beijing Local Taxation Bureau and subordinate units,
　　 Now we transmit the Notice on the execution of mutual exemption of international aviation transportation income indirect tax between China and Sri Lanka released by State Administration of Taxation to you, please put it into force.
    
　　Attachments:
 　　April 14, 2005
    
　　Documents of State Administration of Taxation
　　Guoshuifa(2005)38
　　Notice on the execution of mutual exemption of international aviation transportation income indirect tax between China and Sri Lanka
　　 National and local taxation bureaus of provinces, autonomous regions, municipalities and cities directly under state planning,
　　The exchanged letter on mutual exemption of international aviation transportation income indirect tax between China and Sri Lanka(See the attachments) comes into force on March 1, 2005.
　　Attachment: The exchanged letter on mutual exemption of international aviation transportation income indirect tax between China and Sri Lanka
　　March 18,2005
    
　　Attachment:
　　Attachment: The exchanged letter on mutual exemption of international aviation transportation income indirect tax between China and Sri Lanka
    
 　　Director General of State Administration of Taxation of Peoples Republic of China

　　Xie Xuren

Dear Sir,
 　　I honorably mention our consultation through diplomatic channels on the exemption of business taxes and other indirect taxes levied by the government of P.R. China for those aviation enterprises designated by Sri Lanka Democratic Socialist Republic carrying businesses within P.R. China. Considering that at present Sri Lanka isn’t levying indirect taxes similar to business taxes on international aviation transportation, I hereby suggest the following arrangements:
　　I. Aviation enterprises designated by Sri Lanka Democratic Socialist Republic’s income obtained in P.R. China when carrying out aviation transportation businesses and carrying out sales on aviation transportation businesses ought to be exempt from business taxes and all indirect taxes levied on the gross income and/or circulation amount.
　　II. The exemption mentioned in Article I is also applied to aviation enterprises designated by P.R. China’s income obtained in Sri Lanka Democratic Socialist Republic when carrying out aviation transportation businesses and carrying out sales on aviation transportation businesses.
　　 If you accept the above-mentioned articles, I honorably suggest that this letter and your responding letter on the acceptance by the government of P.R. China of those arrangements given by the government of Sri Lanka Democratic Socialist Republic will be deemed as an understanding between the taxation administrations of the two countries. That understanding will come into force since the day you deliver us the responding letter.
　　 Great honor to you.
    

　　Commissioner General of Inland Revenue Department of Democratic Socialist Republic of Sri Lanka
　　 Lanx P. L. Gunasingham
　　Jan 27, 2005
     

　　Commissioner General of Inland Revenue Department of Democratic Socialist Republic of Sri Lanka
 　　Lanx P. L. Gunasingham
    
 Dear Sir,
　　I honorably received the letter you sent out on Jan 27,2005, with following contents:
Dear Sir,
　　 I honorably mention our consultation through diplomatic channels on the exemption of business taxes and other indirect taxes levied by the government of P.R. China for those aviation enterprises designated by Sri Lanka Democratic Socialist Republic carrying businesses within P.R. China. Considering that at present Sri Lanka isn’t levying indirect taxes similar to business taxes on international aviation transportation, I hereby suggest the following arrangements:
　　 I. Aviation enterprises designated by Sri Lanka Democratic Socialist Republic’s income obtained in P.R. China when carrying out aviation transportation businesses and carrying out sales on aviation transportation businesses ought to be exempt from business taxes and all indirect taxes levied on the gross income and/or circulation amount.
　　 II. The exemption mentioned in Article I is also applied to aviation enterprises designated by P.R. China’s income obtained in Sri Lanka Democratic Socialist Republic when carrying out aviation transportation businesses and carrying out sales on aviation transportation businesses.
　　If you accept the above-mentioned articles, I honorably suggest that this letter and your responding letter on the acceptance by the government of P.R. China of those arrangements given by the government of Sri Lanka Democratic Socialist Republic will be deemed as an understanding between the taxation administrations of the two countries. That understanding will come into force since the day you deliver us the responding letter.
　　 Great honor to you.
　　I, on behalf of the government of People’s Republic of China, agree with the suggestion stated out in your letter.
　　I wish to take this opportunity to show you great honor.
    
　　Director General of State Administration of Taxation of Peoples Republic of China