Laws of the People's Republic of China

The State Administration of Taxation

The Supplementary Circular of the State Administration of Taxation on the Administration of Tax Refund (Exemption) of Export Goods

Guo Shui Fa [2004] No.64

Recently, the State Administration of Taxation issues the following supplementary circular on the administration of tax refund (exemption) of export goods:

1.

Where an export enterprise has any of the following circumstances, it shall fall within the special reasons stated in Article 3 of the document of Guo Shui Fa [2004] No. 64:

(1)

Failing to obtain the relevant documents of export tax refund (exemption) or to declare tax refund (exemption) during the prescribed period due to force majeure;

(2)

Failing to obtain the relevant documents of export tax refund (exemption) during the prescribed period due to the adoption of special means of customs declaration such as the centralized customs declaration, etc. or;

(3)

Failing to obtain the relevant documents of export tax refund (exemption) during the prescribed period due to other reasons caused by special operation modes.

Where an export enterprise is under one of the above circumstances, it shall submit the written application for extending declaration to the taxation authority in the prescribed period, and declare tax refund (exemption) during the approved period after the approval of the taxation authority superior to the prefecture and municipality level (including the prefecture and municipality level).

2.

Where a manufacturing enterprise, in exporting goods, fails to make declaration to go through the formalities of tax refund (exemption) within 90 days from the date of export declaration prescribed in Article 3 of the document of Guo Shui Fa [2004] No. 64, and its expiration date exceeds the declaration period of tax exemption, deduction and refund in the current month, the taxation authority may temporarily suspend collection of taxes as domestic sale goods stated in Article 7 of the document of Guo Shui Fa [2004] No. 64. However, the manufacturing enterprise shall declare tax exemption, deduction and refund during the declaration period of tax exemption, deduction and refund of the next month, and taxation authorities shall levy taxes as domestic sale goods if it still fails to declare.

3.

Paragraph 4 of Article 2 of the document of Guo Shui Fa [2004] No. 64 refers to: Where the export enterprise which handles the registration of export tax refund (exemption) after June 1, 2004, declares export tax refund (exemption) within two years from the date of the first declaration of export tax refund (exemption), shall provide the form for verification and writing-off of export proceeds in foreign exchange. Where the export enterprise which is established newly and re-registers export tax refund (exemption) because of transformation, reorganization, merger and division etc., declares tax refund (exemption), it may not provide the form for verification and writing-off of export proceeds in foreign exchange after approval of the taxation authority at provincial level if the former export enterprise is not under any circumstance listed in Article 2 of the document of Guo Shui Fa [2004] No. 64, and the post examination shall be adopted pursuant to the relevant provisions of the document of Guo Shui Fa [2004] No. 64.

4.

As to the export enterprise which does not go through the appraisal of taxation credit rating, the tax refund department of the national taxation bureau at provincial level may formulate the interim measures for taxation credit rating of export enterprises, and carry out the appraisal of taxation credit rating accordingly, or the tax refund department may determine whether the form for the verification and writing-off of export proceeds in foreign exchange shall be provided in the declaration of the export enterprise pursuant to the other circumstances as listed in Paragraph 3 of Article 2 in the document of Guo Shui Fa [2004] No.64.