China Taxation Service
Hotline: 86-755-82143348, Email:anitayao@citilinkia.com
Finance refers to the monetary and financing activities， including loan， financial lease， financial commodity transfer， financial brokerage and other financial operations.
1) Loan refers to the business of lending money to others for use， including loans lent with funds at one's own disposal and on-lending.Loans lent with funds at one's own disposal refer to the operations to loan the self-owned capital or the attracted institutional and personal deposits to others for use. On-lending refers to the operations to loan the borrowed capital to others for use.The mortgage loan operations of the pawn industry are treated as the loan lent with funds at one's own disposal in tax collection， irrespective of their sources.The loan operations of the people's bank are exempt from tax collection.
2). Financial lease refers to the equipment-leasing operations with the characteristics of financing and ownership transfer. In other words， the leasor purchases equipment and leases it to the leasee in accordance with the specifications， models， properties and other conditions required by the leasee； the ownership of the equipment belongs to the leasor and the right of its use belongs to the leasee during the term of contract； the leasee has the right to purchase the equipment at the residual value so as to have the ownership of the equipment upon the expiration of the contract and after the rental is fully paid. Financial lease is treated as this tax item in tax collection， no matter whether the leasor has sold the residual value of the equipment to the leasee.
3). Financial commodity transfer refers to the transfer of the ownership of foreign exchanges， securities or non-goods futures.Non-goods futures refer to the futures other than commodity futures and precious metal futures， such as foreign exchange futures.
4). Financial brokerage refers to the operations to work as the agents for financial operations.
5). Other financial operations refer to the financial operations other than those mentioned above， such as bank settlement and bill discount. The acts of making deposits or purchasing financial commodities are exempt from business tax.
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