Notice of on small and medium enterprise credit guarantee agencies exempted from business tax related issues

Gong-Xin-Bu-Lian-Qi-Ye No. [2009] 114

 

The provinces, autonomous regions, municipalities and cities, Xinjiang production and construction corps, economic and trade commission (Economic commission), small and medium-sized management (general office, bureau, office) local tax bureau:

 

    According to the spirits of “Office of the State Council on strengthening small and medium enterprise credit guarantee system construction opinions notice" ( Guo-Ban-Fa No. [2006 ] 90) and" General Office of the State Council on the current financial and promoting economic development opinions" (Guo-Ban-Fa No. [2008 ] 126), in order to better cope with the international financial crisis, support and guide the small and medium-sized enterprise credit guarantee agencies provide loan guarantees and financing services for small and medium enterprises especially small enterprises, efforts to alleviate SME loan difficulty in financing, help medium and small enterprises from predicament. We will continue to do a good job of SME credit guarantee agencies business tax exemption notice regarding the relevant issues as follows:

 

    Firstly, conditions of the credit guarantee agencies for tax exemption

    (1) As agreed by the government Authorized departments (small and medium-sized management), to legally register as enterprises (institutions) industry legal representative, and engaged mainly in providing guarantee services for small and medium enterprises. Paid-in capital in excess of 20 Million Yuan.

    (2) Not for profit purpose, guarantee business fees are no higher than 50% of the corresponding period loan rates.

    (3) With at least two years experiences of sustainable development experience, funds is mainly used for the guarantee business, have a sound internal management system and have the ability to provide guarantees for SMEs, outstanding operational performance, has perfect beforehand evaluation, monitoring, follow-up recovery and disposal mechanism for the insured guarantee projects.

    (4) For industrial, agricultural, trade and small and medium-sized enterprises provide secured loans accounted for more than 80% of the total cumulative two-year guarantee business, the cumulative guarantee amount of the single business 8 Million Yuan and below accounted for more than 50% of the total cumulative guarantee business amount.

    (5) To provide guarantee balance for a single insured enterprises security does not exceed 10% of the total amount of the paid-in capital of the guarantee agency, and the average single guarantee liability amount up to no more than 30 Million Yuan.

    (6) The guarantee fund and the loan guarantee amplification ratio is no less than 3 times, and the compensation amount and secured funding ratio is no more than 2%.

    (7) Under the supervision of the local government’s small and medium enterprises supervision department, according to the requirements, to submit guarantee business and financial accounting reports to small and medium enterprise management departments.

    Enjoy three years of business tax reduction and exemption policy, when it is expired, if the guarantee agencies still meet the above conditions, may continue to apply for.

 

    Secondly, tax-exempt procedure

    The qualified SMEs credit guarantee agencies can make the voluntary application, after checked and recommended by the provincial small and medium-sized enterprise supervision departments and the Provincial Local Taxation Department, by the Ministry of industry and information technology and the State Administration of Taxation for approval and issuing the tax-exempt list, the institutions listed need bring relevant documents to tax authority to proceed the tax exemption, all local tax authorities according to the list issued by the Ministry of industry and information technology and State Administration of Taxation, to make approval and proceed duty-free procedures, guarantee agencies may enjoy the exemption of business tax policy.

 

    Thirdly, tax-exempt policy period

    The revenue of guarantee mechanism within three years shall be exempted from business tax, which is generated from the credit guarantee or re-guarantee business for of small and medium enterprises engaged in (excluding credit rating, consulting, training and other income), the exemption period is calculated from the date when guarantee agencies got tax exemption approval from tax authority.

 

    Fourthly, the provinces, autonomous regions, municipalities directly under the central government and cities small and medium-sized enterprise management authorities and the Local Taxation Bureau, in accordance with the requirements of this notice, since the date of the notice issued, in accordance with the openness and" when one batch is ready, report it together " principle, conscientiously do a good job on acceptance, review and recommendation work for local small and medium enterprises credit guarantee organization, the Ministry of industry and information technology and the State Administration of Taxation will according to schedule, issued qualified the guarantee agencies name list for tax exemption.

 

    Fifthly, the provinces, autonomous regions, municipalities directly under the central government and cities small and medium-sized enterprise management authorities and the Local Taxation Bureau, in accordance with the actual situation, to carry out supervision and inspection to the implementation situation of tax exemption for the credit guarantee agencies which already got the approval, to make a dynamic supervision for SME credit guarantee agencies which already enjoyed tax exemption policy. In violation of the provisions, do not accord with derate condition guarantee agencies, once found that the guarantee agencies break the provisions or are not qualified for this policy, need to report it to the Ministry of industry and information technology and the State Administration of Taxation, and cancel its membership to continue to enjoy the tax exemptions.

 

    Sixthly, the provinces, autonomous regions, municipalities directly under the central government and cities small and medium-sized enterprise management authorities shall, in conjunction with the local tax authorities, earnestly review the recommendation and the relevant work strictly following the provisions, the following materials in written form in two copies ( including electronic edition ) submitted to the Ministry of industry and information technology department of small and medium-sized enterprise and the State Administration of Taxation, goods and service tax department.

    (1) To provide an initial work, problems and suggestions for annual SME credit guarantee agencies’ business tax exemption work.

    (2) As reviewed by expert and the announced tax name list of qualified SME credit guarantee agencies.

    (3) Eligible for tax exemption’s " small and medium enterprise credit guarantee agency registration form" (see Annex ), the recent audited 1 years complete annual financial report ( including balance sheet, profit form, cash flow form, guarantee balance change sheet, and report data related to the notes and instructions), copy of business license and the articles of association, recent one year completed guaranty business schedules which is confirmed and sealed by cooperative bank ( the indicators in the submitted Schedules should contain: cooperative bank name, enterprise name, the amount of guarantee, guarantee guarantee fee income, guarantee enterprise name, guarantee amount, guarantee income, contract number of guarantee agencies and guaranteed enterprise, contract number of loaning bank and the loaned enterprise, guarantee liability effective date, warranty guarantee liability release date ).

    (4) Already obtained tax-exempt status, but is not eligible for tax exemption after review, will cancel the SME credit guarantee agencies’ name in the list.

 

  The Ministry of industry and information technology

State Administration of Taxation

March 19 2009