What are the purposes of tax "exemptions, set-offs and refunds" for exports of production enterprises (PE)?
In order to make China's exports more competitive on the international market and relieve that Value Added Tax (VAT) burden imposed on exporters, China has implemented a system of exemptions, set-offs and refunds.
This system in its current form is described in the Notice on Measures for Further Promoting Implementation of Tax "Exemptions, Setoff and Refunds" for Exports, issued by Ministry of Finance and the State Administration of Taxation on January 23, 2002, and which became effective on January 1, 2002.
The Notice sets forth the various formulas required for calculating the tax payable, the amount of the exemptions, setoff and refunds and amounts that may not be exempted or set off. It also outlines the basic procedures that must be followed as well as various administration rules.
Back
