Cancel the tax refund of foreign equipment how to grasp the transition period

VAT in 2009 began a comprehensive transformation, the purchase of domestic equipment rebate policy canceled, has become the focus of foreign investment enterprises.

to stop the equipment tax additional transitional period

"Notice of the Ministry of Finance and the State Administration of Taxation on the national implementation of the VAT reform of certain" (tax [2008]170) article seventh: "since January 1, 2009, the VAT exemption policy on import equipment and foreign invested enterprises purchasing domestic equipment to stop the implementation of VAT tax refund policy." At the same time, "Notice of the Ministry of Finance and the State Administration of Taxation on foreign investment enterprises to stop tax refund policy for the purchase of domestic equipment" (tax [2008]176) document also stipulates that "since January 1, 2009, the foreign investment enterprises within the total amount of investment of domestic equipment purchases of domestic equipment shall be refunded value-added tax policy to stop execution." However, in order to ensure a smooth transition of policy adjustments, fiscal [2008]176 document also provides an additional 6 months of tax rebate transitional period. Namely: the foreign invested enterprises to obtain "before November 9, 2008 with foreign investment projects of the national industrial policy before confirmation" and December 31, 2008 by the competent tax authorities for the record, and before June 30, 2009 (including the day) to buy "list" items included in the purchase of domestic equipment has special VAT invoices equipment, according to the original provisions continue to apply the provisions of the original tax rebate, and is divided into two kinds of tax rebate policy.

the difference between the two tax rebate policy

implementation of different policies. Before July 1, 2006, according to the Circular of the State Administration of Taxation on Issuing the measures for the administration of tax refund for domestic equipment purchased by foreign funded enterprises ([1999]171). After July 1, 2006 this policy is cancelled, "according to the State Administration of Taxation, the national development and Reform Commission on the issuance of the" rebate "Trial Measures for the administration of foreign investment projects to purchase domestic equipment notice" (Guoshuifa No. [2006]111) document regulations. Two different policy is mentioned for the tax rebate of foreign enterprises purchasing domestic equipment "foreign investment projects" list and confirm the book is the approval of the foreign economic and Trade Commission, and the authorities prescribed examination and approval to the provincial development and reform commission.

procurement of domestic equipment to enjoy the tax rebate of foreign companies in different areas. Document [2006]111 document provisions, scope of foreign-invested enterprises can enjoy the purchase of domestic equipment rebate, mainly refers to the foreign investment enterprise is recognized as a general taxpayer of value-added tax and non VAT general taxpayers engaged in the transportation, ordinary residential development enterprises with foreign investment and foreign cooperative enterprises engaged in production of offshore oil exploration and development. Do not include foreign-funded enterprises, small scale. The document [1999]171 document to clear foreign tax rebate range, foreign-invested enterprises including VAT general taxpayers or small-scale taxpayers, does not include non VAT general taxpayers engaged in the transportation.

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