The State Taxation Administration ("STA") recently released its Announcement on Facilitating Handling of Export Tax Rebates to Promote Stable Growth of Foreign Trade, in order to implement the supporting measures for export tax rebates as unveiled in the STA No.36 document in 2022.
The Announcement refined the required materials and items for streamlined claims of export tax rebates, simplified the tax handling process, and optimized the tax refund management and reminder services for taxpayers to comply with. It also improved the export tax rebate policy for processing trade, saying that processing trade firms entitled to tax exemption, deduction and refunds may convert the carried-over taxes that cannot be exempted, deducted or refunded due to the levying and refund tax rates previously into the corresponding amount of input VAT for rebates after the country implements consistent levying and refund tax rates for export products.
It is stressed that efforts would be made to strengthen the linkage of export credit insurance and export tax rebate policies. Specifically, if, for an export business for which an enterprise declares tax rebates, the enterprise has got export credit insurance payment due to failure to receive the foreign exchange, the export rebates should be processed by regarding the export credit insurance payment as the foreign exchange. It is also clarified that joint efforts would be made to combat illegal and criminal acts such as false exports and fraudulent acts for export rebates to create a better business environment for exporters.