LEHMAN LEE&XU
The Ministry of Finance published the
Circular about Relevant Tax Issues of the Insurance Coverage Fund on Sep.6 2010
presents as follows: (a) Insurance Coverage Fund Corporations can be exempted from business income taxes and the scope of the exemption includes: insurance protection funds paid by domestic insurance companies by law; income from donations; interest income from bank savings; interest income from purchasing government bonds and bonds issued by central banks, central enterprises and central financial institutions. (b) Insurance coverage funds paid by domestic insurance companies by law, compensation income from the liquidation properties of liquidated or insolvent insurance companies and recovery gains from relevant responsible parties can be exempted from turnover taxes. (c) The circular also exempts the relevant tax payment receipts of insurance coverage fund companies from stamp duty. The period of exemption starts from 1
st
Jan 2009 and ends on 31
st
Dec 2011.
“This is a protecting regulation to insurance companies which aims to help them go on the track of sound progress,” commented Edward E. Lehman, managing Director of Lehman, Lee & Xu.