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Tax exemption for Chinese company
31 Dec 2018 at 18:46hrs | Views
Finance and Economic Development minister Mthuli Ncube said government will refund and exempt China Jiangsu International from Value added Tax (Vat) and income tax dating back to 2012.
China Jiangsu international, a Chinese company, completed the upgrading of Victoria Falls International Airport in 2016.
The Chinese company consequently won another bid to remodel the Robert Gabriel Mugabe International Airport under a $153 million concessional loan facility from China Eximbank.
President Emmerson Mnangagwa commissioned the Chinese-funded face lift at the Robert Gabriel Mugabe International Airport.
Vat is based on a taxpayer's consumption and every purchase while income tax levies greater taxes on higher-level earners.
In a recent Statutory Instrument 272 of 2018, Ncube alluded government will process VAT refunds and income tax exemptions exclusively for the development of Victoria Falls as claimed by China Jiangsu International.
"The refund of tax shall be made to China Jiangsu ETCC or to its agent or its contractor in respect of goods or services purchased by China Jiangsu ETCC or its agent in respect of goods or services used exclusively for the development of the Victoria Falls international Airport, the statutory Instrument read.
"The commissioner shall process and refund the amounts claimed by China Jiangsu ETCC through the normal administrative process."
He added that the exemption regulations predicated on Section 78 on the VAT Act 6 [Chapter 23:12], will be deemed to have come into effect on April 5, 2012.
"Finance and economic development minister in terms of subparagraph (f) of paragraph (3) of the third schedule to the income Tax Act [Chapter 23:06], hereby makes the following notice…
"With effect from April 5, 2012, the receipts and accruals of China Jiangsu ETCC are exempted from income tax.
"The exemption will be applicable only to receipts and accruals of China Jiangsu ETCC emanating from the Victoria Falls International Airport project."
Meanwhile Chinese investors have been trickling in the country, although many observers have been sceptical about the investments, citing resource looting allegations, externalisation and human rights violations by most Chinese investors across the African continent.
The renovations at Victoria Falls International Airport by China Jiangsu International have improved the number of tourists flocking to Victoria Falls from all over the world, as the airport can now accommodate larger planes.
China Jiangsu international, a Chinese company, completed the upgrading of Victoria Falls International Airport in 2016.
The Chinese company consequently won another bid to remodel the Robert Gabriel Mugabe International Airport under a $153 million concessional loan facility from China Eximbank.
President Emmerson Mnangagwa commissioned the Chinese-funded face lift at the Robert Gabriel Mugabe International Airport.
Vat is based on a taxpayer's consumption and every purchase while income tax levies greater taxes on higher-level earners.
In a recent Statutory Instrument 272 of 2018, Ncube alluded government will process VAT refunds and income tax exemptions exclusively for the development of Victoria Falls as claimed by China Jiangsu International.
"The refund of tax shall be made to China Jiangsu ETCC or to its agent or its contractor in respect of goods or services purchased by China Jiangsu ETCC or its agent in respect of goods or services used exclusively for the development of the Victoria Falls international Airport, the statutory Instrument read.
"The commissioner shall process and refund the amounts claimed by China Jiangsu ETCC through the normal administrative process."
He added that the exemption regulations predicated on Section 78 on the VAT Act 6 [Chapter 23:12], will be deemed to have come into effect on April 5, 2012.
"Finance and economic development minister in terms of subparagraph (f) of paragraph (3) of the third schedule to the income Tax Act [Chapter 23:06], hereby makes the following notice…
"With effect from April 5, 2012, the receipts and accruals of China Jiangsu ETCC are exempted from income tax.
"The exemption will be applicable only to receipts and accruals of China Jiangsu ETCC emanating from the Victoria Falls International Airport project."
Meanwhile Chinese investors have been trickling in the country, although many observers have been sceptical about the investments, citing resource looting allegations, externalisation and human rights violations by most Chinese investors across the African continent.
The renovations at Victoria Falls International Airport by China Jiangsu International have improved the number of tourists flocking to Victoria Falls from all over the world, as the airport can now accommodate larger planes.
Source - dailynews
