Newsletter
INVOICES FOR MRT LAND RIGHTS COMPENSATION
On 19 October 2004, the Ministry of Finance (MOF) issued an interpretation as to whether businesses should issue uniform invoices on receipt of compensation payments for the gov-ernment's acquisition of land use rights for the construction of mass rapid transit systems over or under their land. The MOF stated that when compensation in accordance with the Regula-tions Governing the Treatment and Review of Mass Rapid Transit System Construction Works Over or Under Land is paid to a business for the acquisition, whether by negotiation or by expropriation, of the right of superficies over land owned by the business, such compensation is not consideration for a sale of goods or services by the business, and therefore the business is not required to issue a uniform invoice, and the amount is not subject to business tax.