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Circular on Preferential Policy of Business Tax Imposed on Agricultural Loan by Agricultural Development Bank of China

Document No.:Cai Shui [2016] No. 3

Taxes:Business Tax

Date of Promulgation:2016-01-01

IssueDepartment:Ministry of Finance,State Administration of Taxation

Date of Implementatio:2016-01-18


Circular on Preferential Policy of Business Tax Imposed on Agricultural Loan by Agricultural Development Bank of China


Issued by: Ministry of Finance Sate Administration of Taxation

Document No.: Cai Shui [2016] No. 3

Date of Issuance: 2016-1-18

Finance Departments (Bureaus), Local Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state budgetary plan, State Taxation Bureaus of Beijing, Tibet, Ningxia, Qinghai Province (autonomous regions and municipality directly under the Central Government) and Finance Bureau of Xinjiang Production and Construction Corps, 

To implement the Written Reply from the State Council on Agreeing on the Overall Scheme of the Implementation of Reform Proposed by the Agricultural Development Bank of China (Guo Han [2014] No. 154), the business tax policy concerning the agricultural loan provided by the Agricultural Development Bank of China is hereby notified as follows:

I. From January 1st, 2016 to December 31st, 2018, the business tax imposed on the interest income, earned by the Agricultural Development Bank of China and its branches via provision of agricultural loans (for the specific agricultural loan business list, please see the attachment), shall be levied and collected at a reduced tax rate of 3%.

II. The taxpayers who enjoy the above-mentioned preference shall, pursuant to Article IX of the Provisional Regulations of the People’s Republic of China on Business Tax (Decree No. 540 of the State Council) and other relevant regulations, separately calculate the interest income derived from the loans which enjoy the business tax reduction policy; if they do not separately calculate the interest income, they shall not enjoy the business tax policy as prescribed in Article I of the circular.


Ministry of Finance State Administration of Taxation

January 18th, 2016



Business List of the Agricultural Loans Which Enjoy the Preferential Business Tax Policy

I. Loans used to purchase and stock, regulate and control and sell grains, cotton, oil seeds, sugar, meat, fertilizers, wool and other principle agricultural products (inclusive of farm and sideline products)

II. Loans used to establish the agricultural and rural infrastructure and water conservancy projects

III. Loans used for rural land transfer and the scale operation of rural farmland

IV. Loans used to build farmers’ collective housing, to establish the rural residential environment and to reconstruct the rural shanty towns

V. Loans used to establish the rural circulation system

VI. Loans used for agricultural production materials, technical innovation and science and technology

VII. Loans used for comprehensive agricultural development

VIII. Loans borrowed by the leading enterprises in agricultural industrialization

IX. Loans used for the warehouse facilities of agricultural products (inclusive of farm and sideline products)

X. Loans used to construct county towns (exclusive of the loans used in real estate industry and used to build urban infrastructures)

XI. Loans used to resettle residents of poor areas in another place, to build the infrastructure of poor areas and to develop the characteristic industries of poor areas and other special poverty alleviation loans

XII. Loans borrowed by small agricultural enterprises


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