Ministry of Finance and State Administration of Taxation, Relevant Tax Issues Concerning Exports of Production Enterprises whose Tax is not Refunded or whose Tax Rebate Rates are Lowered Circular

财政部、国家税务总局关于生产企业出口不退税和调低退税率货物有关问题的通知

March 31, 2004 | BY

clpstaff &clp articles

Producers now has to bear the burdens for the tax portion that is not refunded.

Clp Reference: 3220/04.03.03 Promulgated: 2004-03-03

Issued: March 3 2004

Main contents: The Circular states that after cancellation of export tax rebates or lowering of export tax rebate rates of certain goods from January 1 2004, production enterprises (including foreign-invested enterprises) should bear the burdens for the tax portion that is not refunded. Exports on which tax is not refunded should be deemed as domestically sold and subject to value-added tax and consumption tax. Exports of which tax rebate rates are lowered should have the amount of tax that is not exempted or offset transferred to cost from value-added tax on purchases. Value-added tax should be paid if the amount of value-added tax on purchases is less than the amount of tax not exempted or offset.
Related legislation: State Council, Reform of the Current Export Tax Rebate Mechanism Decision, Oct 13 2003, CLP 2003 No.10 p12

clp reference:3220/04.03.03
promulgated:2004-03-03

This premium content is reserved for
China Law & Practice Subscribers.

  • A database of over 3,000 essential documents including key PRC legislation translated into English
  • A choice of newsletters to alert you to changes affecting your business including sector specific updates
  • Premium access to the mobile optimized site for timely analysis that guides you through China's ever-changing business environment
For enterprise-wide or corporate enquiries, please contact our experienced Sales Professionals at +44 (0)203 868 7546 or [email protected]