Document: Explanation of Finance by Business Tax Regulations
Notice of State Taxation Administration of The People's Republic of China on Printing and Distributing Notes on Business Tax Items (Trial Draft) Guo Shui Fa [1993] No.149
(1) Finance
Finance refers to businesses engaged in monetary fund financing activities, including loans and loans.
1. Loan refers to the business of lending funds to others, including self-owned funds loans and reloans.
self-owned capital loan refers to lending self-owned capital or absorbed deposits of units and individuals to others for use.
lending refers to lending borrowed funds to others for use.
the mortgage loan business of the pawnbroker, regardless of its source of funds, is taxed according to its own funds.
the loan business of the people's bank of China is not taxed.
2. financial leasing refers to the equipment leasing business with the characteristics of financing and ownership transfer. That is, the lessor purchases the equipment and leases it to the lessee according to the specifications, models, performance and other conditions required by the lessee. During the contract period, the ownership of the equipment belongs to the lessor, and the lessee only has the right to use it. After paying the rent at the expiration of the contract, the lessee has the right to purchase the equipment according to the residual value to own the ownership of the equipment. All financial leasing, whether the lessor sells the residual value of the equipment to the lessee or not, shall be taxed according to this tax item.
3. The transfer of financial commodities refers to the transfer of ownership of foreign exchange, securities or non-goods futures.
Non-goods futures refer to futures other than commodity futures and precious metal futures, such as foreign exchange futures.
4. The financial brokerage industry refers to the business entrusted to conduct financial activities on behalf of others.
5. Other financial services refer to various financial services other than those listed above, such as bank settlement and bill discount. No business tax shall be levied on deposits or purchases of financial commodities.