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Tuesday, 14 October 14
THE NEW CHINESE TRANSPORTATION TAX LAW: WHAT DOES IT MEAN FOR GREEK SHIPPING? - DELOITTE
 China has recently promulgated a new law which imposes tax on profits from freights of inbound routes. The objective of the new tax law titled “Provisional Measures on the Collection of Tax on Non-Resident Taxpayers Engaged in International Transportation Business” (Bulletin of the State Administration of Taxation 2014, No. 37) is to strengthen the tax administration of foreign companies operating international transportation business with China.
What has changed?
Until recently, China had only been taxing international outbound routes with an effective tax rate of 1.25% on the gross revenue. The new rules extend the scope of the tax to inbound routes, and increase the tax rate. As of August 1st, 2014, freights of non-resident shipping companies operating in international routes towards Chinese ports are expected to pay a new tax rate (Enterprise Income Tax – EIT) of 25% on profit. The tax is levied on freights on voyage charters and time charters.
How will the new tax be collected?
Currently there are three options for collection, however further clarification is expected:
1. Tax registration in China: Non-resident shipping companies will have to register with Chinese tax authorities and comply with local bookkeeping and tax rules. The tax at the rate of 25% will be levied on the declared net profit, or
2. Tax on deemed profit: where the enterprises are unable to calculate and report taxable income accurately, they can register and pay tax on a deemed profit. The profit rate cannot be less than 15% and the tax rate will be 25%. Therefore, for a freight of $100, it will be deemed that there is a $15 profit, for which a 25% tax will be due (therefore an effective tax rate of 3.75%), or
3. Have tax withheld by an agent: instead of registering with the Chinese authorities, a company can pay the tax at the rate of 25% on the assumed 15% profit, by having the tax withheld by the customer or other persons designated by the local tax authorities as withholding agents.
How does this impact Greek shipping?
The Double Taxation Agreement (“DTT”) and the Merchandise Franchise Agreement (“MFA”), which Greece and China have in place, protect Greek shipping companies or non-Greek shipping companies that are managed by Greek management offices by exempting them from any tax on freight transportation income in Chinese ports. It is important to note that the exemption is not automatic; once the Chinese authorities finalize the filing requirements, close attention shall need to be paid to the completion of necessary documentation in order to secure the exemption.
Additionally, the Greek Government is in the process of setting up further safeguards by amending laws related to tax residency certificates in order to ensure that the Greek shipping companies will be exempted from this new levy. In this case, the impact of the new law could only be compliance requirements and not actual tax costs. However, it is still unclear if the DTT and the MFA mentioned above and the submission of the necessary tax residency certificate will have the power to secure shipping companies exemption from this tax law. Deloitte is following closely any development and will keep its clients informed on any news.
Deloitte’s global shipping leader, George Cambanis, commented, “Provided the proposed amendments to the current Greek law enable management offices to obtain the tax residency certificates which would then exempt Greek shipping companies from this new Chinese tax law the only downside to Greek shipping would be the administrative cost of compliance.”
Source: Deloitte / Hellenic Shipping
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Thursday, 20 November 14
MOST MAJOR ASIAN ECONOMIES TO BENEFIT FROM LOWER OIL - FITCH
COALspot.com: The 25% drop in the price of oil since July is likely to lift economic growth prospects, improve terms of trade, and have a pot ...
Thursday, 20 November 14
HANDY: INDO ROUNDS ARE BEING FIXED IN REGION OF US$ 10K - FEARNLEYS
Handy
In the Atlantic we have experienced firmer rates this week much lead by the grain activity out of USG. Vsls open in the USG can achieve in ...
Thursday, 20 November 14
DEMAND FOR DRY BULK CARRIERS INCREASES ON THE BACK OF HEIGHTENED FREIGHT RATE MARKET - NIKOS ROUSSANOGLOU, HELLENIC SHIPPING
Ship owners are looking to take advantage of favorable market conditions through the acquisition of more dry bulk carriers. According to shipbroker ...
Wednesday, 19 November 14
INDONESIA FUEL-PRICE RISE A CLEAR, POSITIVE REFORM SIGNAL - FITCH
COALspot.com: Indonesia's hike of more than 30% in administered fuel prices, announced on 17 November, provides a clear, positive signal of the ...
Wednesday, 19 November 14
CAPES WERE UNDER PRESSURE; LOST 20% WITHIN A WEEK
COALspot.com: " The negative environment in which the week prior ended, marked this past week as well, which closed off on Friday noting the f ...
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- Bharathi Cement Corporation - India
- VISA Power Limited - India
- India Bulls Power Limited - India
- Gujarat Electricity Regulatory Commission - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- Merrill Lynch Commodities Europe
- Attock Cement Pakistan Limited
- Power Finance Corporation Ltd., India
- LBH Netherlands Bv - Netherlands
- Thai Mozambique Logistica
- Toyota Tsusho Corporation, Japan
- Romanian Commodities Exchange
- Wood Mackenzie - Singapore
- Kobexindo Tractors - Indoneisa
- International Coal Ventures Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Port Waratah Coal Services - Australia
- CNBM International Corporation - China
- Kumho Petrochemical, South Korea
- Australian Coal Association
- Price Waterhouse Coopers - Russia
- Indian Oil Corporation Limited
- Edison Trading Spa - Italy
- Bangladesh Power Developement Board
- PNOC Exploration Corporation - Philippines
- Agrawal Coal Company - India
- Ceylon Electricity Board - Sri Lanka
- Coastal Gujarat Power Limited - India
- Rashtriya Ispat Nigam Limited - India
- Bhatia International Limited - India
- Kohat Cement Company Ltd. - Pakistan
- Planning Commission, India
- Renaissance Capital - South Africa
- Carbofer General Trading SA - India
- Wilmar Investment Holdings
- Vijayanagar Sugar Pvt Ltd - India
- The University of Queensland
- Offshore Bulk Terminal Pte Ltd, Singapore
- Energy Development Corp, Philippines
- Bahari Cakrawala Sebuku - Indonesia
- Essar Steel Hazira Ltd - India
- Central Java Power - Indonesia
- Indo Tambangraya Megah - Indonesia
- White Energy Company Limited
- Straits Asia Resources Limited - Singapore
- Sical Logistics Limited - India
- Thiess Contractors Indonesia
- Tata Chemicals Ltd - India
- Karbindo Abesyapradhi - Indoneisa
- Directorate Of Revenue Intelligence - India
- PTC India Limited - India
- Global Green Power PLC Corporation, Philippines
- Georgia Ports Authority, United States
- Kideco Jaya Agung - Indonesia
- Parliament of New Zealand
- Heidelberg Cement - Germany
- Miang Besar Coal Terminal - Indonesia
- Sakthi Sugars Limited - India
- Cigading International Bulk Terminal - Indonesia
- Timah Investasi Mineral - Indoneisa
- IEA Clean Coal Centre - UK
- Metalloyd Limited - United Kingdom
- Jaiprakash Power Ventures ltd
- Neyveli Lignite Corporation Ltd, - India
- Deloitte Consulting - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Vedanta Resources Plc - India
- Uttam Galva Steels Limited - India
- Antam Resourcindo - Indonesia
- Directorate General of MIneral and Coal - Indonesia
- Mercuria Energy - Indonesia
- Sinarmas Energy and Mining - Indonesia
- Ministry of Mines - Canada
- Grasim Industreis Ltd - India
- PowerSource Philippines DevCo
- Singapore Mercantile Exchange
- SN Aboitiz Power Inc, Philippines
- Latin American Coal - Colombia
- Savvy Resources Ltd - HongKong
- European Bulk Services B.V. - Netherlands
- Pendopo Energi Batubara - Indonesia
- Baramulti Group, Indonesia
- Vizag Seaport Private Limited - India
- Riau Bara Harum - Indonesia
- Meenaskhi Energy Private Limited - India
- Siam City Cement PLC, Thailand
- Salva Resources Pvt Ltd - India
- San Jose City I Power Corp, Philippines
- Eastern Coal Council - USA
- Coal and Oil Company - UAE
- Formosa Plastics Group - Taiwan
- Banpu Public Company Limited - Thailand
- Karaikal Port Pvt Ltd - India
- Holcim Trading Pte Ltd - Singapore
- New Zealand Coal & Carbon
- Simpson Spence & Young - Indonesia
- Petrochimia International Co. Ltd.- Taiwan
- Economic Council, Georgia
- Chamber of Mines of South Africa
- Australian Commodity Traders Exchange
- Electricity Generating Authority of Thailand
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Indogreen Group - Indonesia
- IHS Mccloskey Coal Group - USA
- Binh Thuan Hamico - Vietnam
- Posco Energy - South Korea
- AsiaOL BioFuels Corp., Philippines
- Xindia Steels Limited - India
- Madhucon Powers Ltd - India
- Bukit Baiduri Energy - Indonesia
- Mercator Lines Limited - India
- OPG Power Generation Pvt Ltd - India
- Aboitiz Power Corporation - Philippines
- Bulk Trading Sa - Switzerland
- Larsen & Toubro Limited - India
- Petron Corporation, Philippines
- The State Trading Corporation of India Ltd
- Tamil Nadu electricity Board
- Maharashtra Electricity Regulatory Commission - India
- Kepco SPC Power Corporation, Philippines
- Rio Tinto Coal - Australia
- Mintek Dendrill Indonesia
- Samtan Co., Ltd - South Korea
- ICICI Bank Limited - India
- Kaltim Prima Coal - Indonesia
- Leighton Contractors Pty Ltd - Australia
- Videocon Industries ltd - India
- Ministry of Transport, Egypt
- Africa Commodities Group - South Africa
- Jorong Barutama Greston.PT - Indonesia
- Bhoruka Overseas - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Parry Sugars Refinery, India
- SMC Global Power, Philippines
- Borneo Indobara - Indonesia
- Orica Australia Pty. Ltd.
- SMG Consultants - Indonesia
- Bhushan Steel Limited - India
- Barasentosa Lestari - Indonesia
- Independent Power Producers Association of India
- Semirara Mining Corp, Philippines
- Therma Luzon, Inc, Philippines
- GAC Shipping (India) Pvt Ltd
- Star Paper Mills Limited - India
- Kapuas Tunggal Persada - Indonesia
- Bukit Makmur.PT - Indonesia
- GVK Power & Infra Limited - India
- ASAPP Information Group - India
- Eastern Energy - Thailand
- Alfred C Toepfer International GmbH - Germany
- Orica Mining Services - Indonesia
- Commonwealth Bank - Australia
- Maheswari Brothers Coal Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Anglo American - United Kingdom
- Meralco Power Generation, Philippines
- Jindal Steel & Power Ltd - India
- Kartika Selabumi Mining - Indonesia
- Ambuja Cements Ltd - India
- Medco Energi Mining Internasional
- Energy Link Ltd, New Zealand
- Kalimantan Lumbung Energi - Indonesia
- Sindya Power Generating Company Private Ltd
- Krishnapatnam Port Company Ltd. - India
- Sojitz Corporation - Japan
- Gujarat Mineral Development Corp Ltd - India
- Makarim & Taira - Indonesia
- Intertek Mineral Services - Indonesia
- GMR Energy Limited - India
- London Commodity Brokers - England
- Sarangani Energy Corporation, Philippines
- Iligan Light & Power Inc, Philippines
- Chettinad Cement Corporation Ltd - India
- Mjunction Services Limited - India
- Globalindo Alam Lestari - Indonesia
- Ministry of Finance - Indonesia
- Bayan Resources Tbk. - Indonesia
- Siam City Cement - Thailand
- Coalindo Energy - Indonesia
- Indika Energy - Indonesia
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Malabar Cements Ltd - India
- Sree Jayajothi Cements Limited - India
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- TeaM Sual Corporation - Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Manunggal Multi Energi - Indonesia
- Electricity Authority, New Zealand
- South Luzon Thermal Energy Corporation
- Marubeni Corporation - India
- Lanco Infratech Ltd - India
- Minerals Council of Australia
- Ind-Barath Power Infra Limited - India
- Global Coal Blending Company Limited - Australia
- Asmin Koalindo Tuhup - Indonesia
- Dalmia Cement Bharat India
- Central Electricity Authority - India
- Gujarat Sidhee Cement - India
- Trasteel International SA, Italy
- Global Business Power Corporation, Philippines
- GN Power Mariveles Coal Plant, Philippines
- Goldman Sachs - Singapore
- The Treasury - Australian Government
- Aditya Birla Group - India
- Indian Energy Exchange, India
- Indonesian Coal Mining Association
- CIMB Investment Bank - Malaysia
- MS Steel International - UAE
- McConnell Dowell - Australia
- Interocean Group of Companies - India
- Oldendorff Carriers - Singapore
- Standard Chartered Bank - UAE
- Semirara Mining and Power Corporation, Philippines
- Cement Manufacturers Association - India
- Altura Mining Limited, Indonesia
- Pipit Mutiara Jaya. PT, Indonesia
- Bukit Asam (Persero) Tbk - Indonesia
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