China's adjustment of equipment manufacturing equipment import tax policy

On the 12th, it was learned from the Ministry of Finance of the People's Republic of China that the Ministry of Finance, the National Development and Reform Commission, the General Administration of Customs and the State Administration of Taxation issued a notice recently to adjust the import tax policy for some equipment manufacturing equipment and its key components.

According to the notice, since January 1, 2008 (based on the time of import declaration), China has imported key components for the development and manufacture of ultra-high-voltage power transmission and transformation equipment, large-scale petrochemical equipment and large-scale coal chemical equipment. The import tariffs and import value-added tax paid by raw materials are subject to pre-requisition and retreat. The tax refunds are treated as state investment and converted into state capital, which is mainly used for the research and production of new products and the building of independent innovation capabilities.

The notice also specifies the conditions for the equipment and enterprises that enjoy the above import tax policy.

At the same time, since September 1, 2008, China has stopped importing tax exemption policies on some of the newly approved domestic and foreign investment projects (subject to the approval, approval or filing date of the project, the same below).

For domestic and foreign-funded investment projects approved before September 1, 2008, the equipment mentioned in the preceding paragraph shall continue to be implemented in accordance with the relevant provisions of the “Notice of the State Council on Adjusting the Tax Policies for Imported Equipment” before March 1, 2009; After March 1st (including March 1st), the import of the above-mentioned import tax will be suspended, and the import tax exemption policy will be suspended.

Since September 15, 2008, foreign-funded enterprises' own-funded projects and processing trade enterprises have imported the above-mentioned self-use equipment that has been subject to import tax retreat by means of non-valuable equipment provided by foreign companies under the processing trade, and will cease to implement import tax exemption. policy.