Laws of the People's Republic of China

State Administration of Taxation

The Official Reply of the State Administration of Taxation on the Issues concerning the Tax Reimbursement for Linseed Oil and other Exported Goods

Guo Shui Han [2005] No. 974

The National Tax Bureau of Liaoning Province,

We have acknowledged the receipt of your letter Asking for Instruction on the Issues concerning the Tax Reimbursement for Linseed Oil and other Exported Goods, a document of your Bureau (Liao Guo Shui Fa [2005] No. 120). After study, we hereby give an official reply as follows:

I.

The linseed oil, a kind of dry oil made from the pressed or solvent-distilled linseed, does not belong to the "Agricultural Products" regulated in the Explanatory Notes on the Levying Scope of Agricultural Products, and the applicable value-added tax rate shall be 17%. With regard to those exporting enterprises on which the export value-added tax has been levied on a tax rate of 13%, your Bureau shall require them to go to the supply enterprises to change to value-added tax invoice levied on a tax rate of 17%. Otherwise, the tax shall not be refunded.

II.

Zirconium silicate, a hoary powder produced with zirconium ore undergoing grinding, purification and other processing techniques, does not belong to the "Metal Mineral Dressing Products" regulated in the Notice of the Ministry of Finance and the State Administration of Taxation on the Issues concerning the Adjustment of the Value-added Tax Rate of the Metal Mineral and Non-metal Mineral Dressing Products (Cai Shui Zi [1994] No.22), and the applicable value-added tax rate shall be 17%. With regard to those exporting enterprises on which the export value-added tax has been levied on a tax rate of 13%, your Bureau shall deal with it by applying mutatis mutandis the provisions in Article I.

State Administration of Taxation

October 14, 2005