The tax policy of ship leasing needs a new prescription

In the global shipping financing market, leasing occupies a considerable share, the annual financing scale is second only to bank loans, equivalent to One-fourth of the scale of bank loans, far higher than the capital market financing. But in China, the shipping financing of the lease accounted for a small, although the financial leasing company to the ship as the main product, but many ropes tied to the hands and feet, the business is limited to domestic coastal and inland waterway shipping narrow market. Financial leasing company Capital strength, this can be a powerful but not strong, the main reason is not in accordance with international practices in the Overseas establishment of SPV (special purpose companies), tax policy "bottleneck" is also an important factor. This "bottleneck" is reflected in the ship leasing tax rebate, the specific performance of three: first, the ship export, domestic shipbuilding enterprises will ship to foreign enterprises, enjoy 17% of the export tax rebate.　　And the financial leasing company buys the ship which the domestic shipbuilding enterprise constructs, then leases it to the foreign enterprise, cannot enjoy the export tax refund. Secondly, the domestic ocean-going vessels, China Shipbuilding Industry Group Corporation and China Shipbuilding Corporation (hereinafter referred to as "two shipping companies") owned enterprises and China Ocean Shipping (Group) corporation, Sinotrans Long Aviation Group and China Shipping (Group) Corporation (hereinafter referred to as "the three major airlines") signed the construction of domestic ocean shipping contracts, After the delivery of the ship and the payment of value-added tax according to law, the central government by the domestic ocean vessels excluding VAT price of 17% for the two shipping companies to subsidize, returned to the shipyard.　　and financial leasing companies to buy two large shipping enterprises to build the domestic offshore ship, and then leased to the four major airlines, can not enjoy subsidies. Third, the marine engineering structure products, domestic production enterprises to domestic offshore oil and gas mining enterprises to sell marine engineering structure products as exports, according to the uniform provisions of the tax rebate rate of export goods.　　and financial leasing companies to domestic production enterprises to buy marine engineering structure products, and then leased to domestic offshore oil and gas mining enterprises, can not enjoy export tax rebate. The national tax policy authorities are also trying to find a solution to the issue of export tax rebate for ship leasing. March 30, 2010 and May 18, the relevant departments issued a tax (2010)24, "Ministry of Finance General Customs administration of the State administration of taxation in Tianjin to carry out the financial leasing of ships export tax refund of the pilot notice" and the national tax (2010)52, "the State administration of taxation on the issuance of"　　Financial leasing of the export tax rebate management measures, two documents, Tianjin Financial Leasing enterprises to transfer the ownership of the operation of foreign enterprises to the financing of the lease of the ship export, starting from April 1, 2010, in Tianjin, the implementation of a 1-year export tax rebate pilot. This is undoubtedly a good head, for the ship leasing brought the message of spring, but because of the complexity and particularity of the financing leasing business, the policy has not yet been implemented. The impact of the policy results are mainly two major issues: first, in two forms to deal with export tax rebate. One is to leave the purchase method, namely: in the "Financial leasing contract" has been signed expressly agreed that the lessee of the leased ship after the expiration of the lease has been selectedThe way of purchase, the implementation of partial rebate, in accordance with the lease contract for the rental of the rent of the progress of the tax rebate.　　One is the way of late purchase, that is: in the signed "Financing lease contract" does not have to choose whether or not to leave the leased ship, but, at the expiry of the financial lease, the lessee chose to purchase the lease of the way of the transaction, the implementation of the leasing ship in the real transfer of ownership to be a one-time refund. These two types of tax rebate, whether by the partial refund of the lease contract, or in the transfer of ownership one-time tax rebate, are the unfair treatment of financial leasing.　　The same is the export, the shipyard to sell the ship to foreign enterprises can be a one-time tax refund, while the financial leasing companies will be partial rebate, and even to wait for export for many years before the rebate. Ship Leasing business Lease terms are relatively long, the shortest five years, generally in 10 years or so. According to these two kinds of tax rebate method, the financial leasing company cannot bear the interest cost that the VAT produces, the net profit of contract is difficult to cover. And the longer the lease term, the heavier the burden.　　In addition to the dollar financing, exchange rate risk and other factors, financial leasing companies to lease the ship to foreign enterprises may be a loss, for export tired, so can only choose not to do ship leasing export business. Second, only the transfer of ownership of foreign enterprises to the financing of the export of export tax rebate. According to whether the transfer of ownership as a condition of export tax rebate, it is unfair. Export rebate policies encourage exports, not others. Even if the ownership is not transferred, as long as the ship is leased to the overseas enterprises, from overseas enterprises to receive rent, rather than the return of the ship to the domestic, it should be regarded as exports, and thus equal access to export tax rebates. Moreover, the characteristics of the financing lease determines that financial leasing companies are not shipping companies, financial leasing companies do not have the right to operate the ship, it is impossible to hold the ship forever, ownership will be transferred sooner or later.　　Even if the first tenant does not transfer ownership within the first lease term, the second, third lessee, second, third lease term, ownership will eventually transfer, only when transferred to which foreign enterprises.　　The tax policy authorities gave the export tax refund of the ship leasing a policy of dancing in chains, may be worried about the export rebate after the ship returned to the domestic, the risk of tax rebate, but this can be through to the financial leasing companies to recover the tax refund of the method to solve, and should not impose restrictions on the policy, leading to its fictitious. September 8 last year, just released the implementation of the State administration of taxation in 2010, the 13th "on the financing of the leasing business in the lease sale of assets related to the tax issue of the announcement" to solve the problem of ship leasing tax bottlenecks provided an example. Financial leasing companies eagerly look forward to the national tax policy authorities, as soon as possible to adjust and improve the ship leasing tax policy. Recommendations are as follows: first, do not distinguish whether the ship's ownership transfer to foreign enterprises, as long as the ship leased to overseas enterprises, all of the export tax rebate; second, the financial leasing companies to purchase the ship's "value-added tax invoices", "Customs declaration of export Goods (exclusive export tax refund)" and borderThe tenancy agreement signed by the lessee, to handle a one-time tax refund; third, the leasing of export ships before the real transfer of ownership to foreign enterprises, the ship returned to import, customs do not levy import duties and import links tax, but the tax department to recover the tax refund, at the same time in the current demand deposit charge interest;　　Financial leasing companies to buy domestic ocean ship leasing to the national shipping companies, the central government shall subsidize 17% per cent of the domestic ocean-going vessels without VAT; The financial leasing company buys the offshore engineering structure to the domestic production enterprise, leases it to the domestic offshore oil and gas exploitation enterprise, and returns the tax rebate rate according to the uniform stipulation export goods. (the author is the chief analyst of Minsheng Financial Leasing Co., Ltd.)