New tax rebate policy in China

On 08-oct,Premier Li Keqiang presided over an executive meeting of the state council to determine measures to improve the export tax rebate policy and speed up the tax refund process,aimed to reduce the burden on enterprises and maintain steady growth in foreign trade.

The meeting pointed out that the implementation of export tax rebates is in line with the world trade organization rules.We need further improve the export tax refund policy and speed up the process of export tax rebate, which will help deepen supply-side structural reform and drive down costs in the real economy.It is also conductive to addressing the current complex international suitation and maintain steady growth in the foreign trade. In accordance with the principle of structural adjustment and in line with international prevailing practices,the meeting decided to raise the current export rebate rate of 15% and some 13% to 16% ,raise 9% to 10% and some to 13%,raise 5%to 6%,and some to 10%.This policy will be acted from November 1, 2018.Meanwhile, export rebate rates for products with high energy consumption, high pollution, resource properties and facing the task of capacity reduction will remain unchanged. To simplify the tax system,We will reduce the tax rebate rate from seven to five .The meeting also confirmed that in order to further accelerate the progress of tax refund, export enterprises with high credit rating and good tax payment records should simplify procedures and shorten the time of tax refund, fully implement paperless tax refund declaration and improve the efficiency of tax refund examination.Optimize the tax refund service, help enterprises to timely collect documents to declare tax refund, as soon as possible to achieve the full network coverage of electronic tax rebate.We will encourage foreign trade comprehensive service enterprises to provide tax refund services for small and medium-sized enterprises.We will resolutely crack down on fraudulent export tax rebates.By adopting the above measures, the average tax refund time will be shortened from the current 13 working days to 10 working days before the end of this year.