The Ministry of Finance announced yesterday that with the approval of the State Council, the Ministry of Finance and the State Administration of Taxation issued the "Notice on Raising the Tax Rebate Rates for Certain Products Exports", specifying that some labor-intensive and high-tech contents should be appropriately raised from the next month. The export tax rebate rate for high-value-added goods is to prevent a passive situation that will affect China's economic development due to a sharp drop in exports. The announcement pointed out that the export tax rebate adjustment involved a total of 3486 items, accounting for 25.8% of the total number of items in the customs tariff.
The Ministry of Finance announced that it had decided to increase the export tax rebate rate of certain textiles, clothing and toys to 14%; raise the export tax rebate rate for daily use and art ceramics to 11%; raise the export tax rebate rate for some plastic products to 9%; and use some furniture. Export tax rebate rate increased to 11% and 13% respectively; AIDS drugs, genetic freeze-dried powder, yellow collagen, toughened safety glass, capacitor reeling, marine anchor chain, sewing machine, fan, CNC machine tool hard The export tax rebate rate for such products as quality alloy knives increased to 9%, 11% and 13%, respectively.
3,000 articles involved in the total 25%
For this time raising the export tax rebate rate, an expert from the Development Research Center of the State Council stated that the export tax rebate is not a subsidy for export products. Instead, it considers that the product must also collect value-added tax in the importing country. Therefore, it will refund the local value-added tax when exporting. An international practice of repeated taxation should not be used as a policy measure to regulate the scale of exports. The government should strengthen the stability and coherence of foreign trade policies. On the other hand, the State Administration of Taxation has recently conducted research and improvement on the adjustment plan for the collection of enterprise income tax, and has officially solicited opinions from various local governments. The Letter of the State Administration of Taxation on the Opinions on the Adjustment of the Scope of the Collection of Enterprise Income Tax Management has clearly stated that the corporate income tax of banks (credit agencies) and insurance companies is regulated by the national taxation authority, and the corporate income tax of other types of financial enterprises is managed by the local taxation department.
Corporate Income Tax Collection and Management Adjustment The basic plan for the adjustment of the scope of the enterprise income tax collection of the State Administration of Taxation is to use â—‹8 year as the base year, and the actual management households will not make adjustments in â—‹8. â—‹ After nine years of new management, enterprises that are liable to pay value-added tax shall have their corporate income tax regulated by the state taxation department; for enterprises that are liable to pay business tax, the enterprise income tax shall be regulated by the local taxation department.
At the same time, special provisions are made for the following newly added enterprises: Enterprises whose income tax income is fully attributable to the central government and those that are subject to business tax at the national tax department are subject to corporate taxation. The corporate income tax of banks (credit agencies) and insurance companies is managed by the national tax authority, and the corporate income tax of other types of financial enterprises is managed by the local tax department. The corporate income tax of foreign-invested enterprises is still managed by the national tax department.
June 18, 2019
Editor's note: According to the announcement of the Ministry of Finance, the export tax rebate rate for some textiles and garments has been raised. This will undoubtedly have a great impact on textile and apparel industries. The change in policy will drive the reform of the industry.