November 5, 2018: The Chinese government has announced a new policy to help foreign trade firms see additional benefits from the tax rebate and better prepare against external risks. According to the notice of Finance and Taxation (2018) No.123, this update went into effect on November 1st.
As you may recall, China announced a previous tax rebate in September which applied to electromechanical, cultural and other products.
Some points to note with this update:
- The export tax rebate of applicable items will be increased as listed in the provided table.
- The export tax rebate of HTS 23040010 & 23040090 will be abolished.
- Unless otherwise specified, the export tax rebate rates will be as follows:
- Original rate of 15% will increase to 16%
- Original rate of 9% will increase to 10%
- Original rate of 5% will increase to 6%
Please click here for the original notice from the Chinese government.
Please click here for a translated version.
Should you have any questions or concerns with this new regulation, please reach out to BDP's Corporate Compliance Team.
Source: BDP International
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