The Ministry of Finance and the State Taxation Administration recently released the Circular about Value-added Tax Rebate Policies for International Transport Ships at the Hainan Free Trade Port. The circular will take effect from October 1, 2020 until December 31, 2024.
According to the circular, domestic shipbuilders can apply for value-added tax rebates if they sell ships to companies operating shipping services on the international market and in Hong Kong, Macau and Taiwan. The tax rebate applications shall be filed by ship buyers, and the tax rebates shall be equivalent to the amount of value-added tax bills when the ships were purchased. The circular also specified document requirements for tax rebate applications.