Two ministries to reduce international shipping business tax

Air China, Cosco shipping last night announced that the new regulations will be reduced by 549 million and 42 million respectively, the Ministry of Finance, the State administration of state tax relief of international shipping business notice, so that all the aviation stocks staged in yesterday, "a surprise reversal." Yesterday morning, Air China (601111) trend was once placid, but in the afternoon, but with a 90-degree angle straight up, and finally at about two o'clock in the afternoon to touch the trading board, closed up 7.12%, the whole day amplitude 12.80%;st eastern (600115) also experienced from the fall to the limit of the surprise reversal,　　The final charge Rose 4.76%, the whole day amplitude 9.99%. After the close, many market participants have sought the cause of aviation stocks, and at this time, the Ministry of Finance on its website yesterday, the "International transport services exempted from business tax notice" has aroused market attention.　　This notice is also available on the IRS website.　　However, according to the official websites of the two ministries, the notices were written in writing on April 23.　　Free Business tax on international shipping from the contents of the notice, from January 1, 2010 onwards, the People's Republic of China (hereinafter referred to as "") units or individuals to provide international transport services exempt from business tax.　　The so-called International Transportation Service means: 1. Carrying passengers or goods out of the territory, 2, carrying passengers or goods to enter the country, 3, carrying passengers or cargo abroad.　　It is reported that the notice has been implemented since January 1, 2010, January 1, 2010 to the date of the day has been levied on the tax should be exempted, in the taxpayer after the taxable tax deduction or tax rebate. "From the literal meaning of the notice, the notice is targeted at the service provider, and the provision of such services is nothing more than air, sea two modes of transport."　　"and Lexon law firm partner, senior lawyer Yang Baochun said.　　And more direct brokers analysts pointed out that the introduction of the notice, means that airlines international airline business tax on this cancellation, directly favorable airlines.　　"At present, the domestic listed airlines have international routes business," said Wu Yunying, an analyst with the Yangtze River Securities, the international route is exempt from sales tax, the specific impact of annual earnings per share will be a few cents. The preliminary calculations of another brokerage analyst are similar.　　In his view, the notice on the international airlines accounted for a larger number of companies, the current Air China, Southern Airlines, St East Airlines, international routes accounted for about 35%, 15% and 26%, the above companies will become the most profitable airlines. Air China: 0.045 yuan per share gain Air China, the first time last night, issued a notice that the company has not officially received the "International transport services exempt from business tax notice", but in accordance with the spirit of the notice, "in 2009, the actual occurrence of the company's international and regional shipping revenue ( Excluding fuel surcharge income), based on a comprehensive tax rate of about 3.21% (including business tax, urban maintenance and construction tax andEducation fee added) estimates that this policy will reduce the company's 2009 annual business tax and additional expenditure of about 549 million yuan. "According to the total share capital of Air China 12.2 billion, this means that the policy will contribute 0.045 yuan per share of the revenue."　　Air China 2009 Annual report shows that the company 2009 earnings per share of 0.42 yuan, the whole year to achieve operating income of 51.09 billion yuan, to achieve a net profit of 5.029 billion yuan.　　Not only is Air China, Cosco Shipping (600428) last night also issued on the international transport services exempt from the impact of business tax announcement, by the Chinese shipping Finance Department of the initial calculation, such as the company 2009 annual shipping revenue calculation, can reduce the company's business tax expenditure of about 42 million yuan. Available data show that COSCO shipping 2009 earnings per share of 0.1 yuan, operating income of 3.901 billion yuan, to achieve a net profit of 136 million yuan.　　The company's shares rose slightly by 0.77% to 9.14 Yuan yesterday. Yesterday, however, analysts warned that the market had partly digested the news's contribution to profits yesterday, and that the airline industry's risk volatility was still relatively high.