CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION CONCERNING THE LEVY OF THE BUSINESS TAX ON THE TRANSFER OF THE INTANGIBLE ASSETS CONDUCTED BY THE FOREIGN ENTERPRISES

The State Administration of Taxation

Circular of the State Administration of Taxation Concerning the Levy of the Business Tax on the Transfer of the Intangible Assets
Conducted by the Foreign Enterprises

GuoShuiFa [2000] No.70

April 24, 2000

According to the stipulations in the Circular of the State Administration of Taxation Concerning the Levy of the Business Tax on the
Income arising from the Transfer of Intangible Assets into Chinese Territory conducted by Foreign Enterprises (No.4 in 1998 issued
by the State Administration of Taxation) and the Written Reply of the State Administration of Taxation Concerning the Levy of the
Business Tax on the Transfer of Intangible Assets to Our Country conducted by Foreign Enterprises (No.797 in 1998 replied in letter
by the State Administration of Taxation), the income arising from the transfer of intangible assets into Chinese territory conducted
by foreign enterprises should be levied of the business tax following January 1, 1994. But some regions did not know whether income,
arising from contracts for the transfer of intangible assets signed before the end of 1993 between foreign enterprises and units
located in Chinese territory but gained after 1994, should be levied of the business tax. After study now make the following stipulations:

Income, arising from contracts for the transfer of intangible assets signed before the end of 1993 between the foreign enterprises
and units located in Chinese territory, should not be levied of the business tax whenever it would be earned by foreign enterprises.