Llinks Law Offices
David Yu and Clare Lu
[email protected]; [email protected]
In order to facilitate the construction of harbours in Tianjin and to encourage vessel exportation under financial leasing, the Ministry of Finance (Mof), the General Administration of Customs (GAC) and the State Administration of Taxation (SAT) jointly promulgated the Circular on Carrying out Export Tax Refund in Tianjin (Trial) for Vessels Exportation under Financial Leasing Arrangement (Cai Shui [2010] No. 24, Circular 24) on March 30 2010. Circular 24 temporarily provides a one-year export tax refund to financial leasing enterprises on financial leasing arrangements whereby ownership of vessels are transferred to offshore enterprises.