Following a series of measures to stabilize foreign trade, the State Council once again showed a favorable foreign trade policy. This time, the focus of the deployment was on improving the export tax rebate policy and speeding up the tax rebate.
The State Council executive meeting held on October 8 pointed out that the implementation of export tax rebates is in line with the rules of the World Trade Organization. Further improving the export tax rebate policy and speeding up the export tax rebate will help deepen the structural reform of the supply side and promote the cost reduction of the real economy. It will also help to cope with the current complicated international situation and maintain stable growth of foreign trade.
The meeting decided that from November 1, 2018, in accordance with the principle of structural adjustment, with reference to international common practice, the current export tax rebate rate for goods is 15% and part of 13% is raised to 16%; 9% is raised to 10%. Some of them were raised to 13%; 5% were raised to 6%, and some were raised to 10%. The export tax rebate rate for products with high energy consumption, high pollution, resource products and tasks facing de-capacity remains unchanged. Further simplifying the tax system, the tax rebate rate has been reduced from the original seven to five.
This is the second time this year to increase the export tax rebate rate. At the beginning of September, the Ministry of Finance and the State Administration of Taxation jointly issued a notice to clarify that in order to improve the export tax rebate policy, the VAT export tax rebate rate will be increased for products such as electromechanical and cultural products. Among them, the multi-component integrated circuit, non-electromagnetic interference filter, books, newspapers and other products export tax rebate rate increased to 16%; bamboo, wood fan and other products export tax rebate rate increased to 13%; basalt fiber and its products, security The export tax rebate rate for products such as pins has increased to 9%.
The meeting also confirmed that in order to further accelerate the progress of tax rebates, the export enterprises with high credit ratings and good tax records will simplify the procedures and shorten the time for tax refunds, and fully implement the paperless tax refund declaration to improve the efficiency of tax refund review. Optimize the tax refund service, help enterprises to collect the documents and declare the tax refund in time, and realize the full coverage of the electronic return network as soon as possible. Encourage foreign trade integrated service enterprises to provide tax refund services for small and medium-sized enterprises.
The meeting made it clear that by adopting the above measures, the average time for tax refunds will be reduced from the current 13 working days to 10 working days before the end of this year.
According to the principle of VAT, in order to avoid double taxation in international trade, the destination (consumption place) principle is used to levy taxes, that is, the exporting country exports goods at a price that does not include tax, and the importing country will use the goods at the destination (consumption). Land) is taxed at the same tax rate as local goods. In order to realize the export of goods at a price not including tax, the tax on goods sold in the exporting country is exempt from tax, and the input tax is refunded.
In theory, if the goods are exported at a price that does not include tax, the tax rebate rate and the tax rate should be the same, that is, how much is refunded. However, taking into account factors such as tax refund management, the tax rebate rate will usually be lower than the tax rate. The greater the difference between the tax rebate rate and the tax rate, the higher the tax cost of export enterprises.
Li Xuhong, director of the Institute of Finance and Taxation and Application at the Beijing National Accounting Institute, said that the purpose of raising the export tax rebate rate is to encourage exports. However, while raising the export tax rebate rate, it is also necessary to pay attention to tax fraud, because the increase in tax rebate rate can enable enterprises to obtain more tax rebates, and it is possible to breed tax fraud under the benefit of profit.
Lai Yongling, director of the E-Commerce Research Center of Shanghai University of Finance and Economics, believes that from the time of compressing customs clearance, simplifying customs clearance procedures, and improving the export tax rebate policy, the export tax rebate rate will be accelerated. This is a set of combined punches that reduce the customs clearance costs as a whole, especially for foreign trade enterprises. For SMEs, it is quite a big plus.
It is worth mentioning that this meeting made it clear that the export tax rebate rate for products with high energy consumption, high pollution, resource products and tasks facing de-capacity remains unchanged. In this regard, Zhuang Wei, deputy dean of the Institute of International Economics of the University of International Business and Economics, will help deepen the supply-side structural reforms, boost the optimization structure, transformation and upgrading of Chinese enterprises, and better move from quantitative growth to quality development. .
Observing the past three executive meetings of the State Council, it is not difficult to find that whether it is to reduce the number of regulatory documents to be verified in the import and export process from 86 to 48, or to reduce the import tariff rate of 1585 tax items such as industrial products, or the latest export The core of the new tax rebate policy is to reduce the burden on enterprises and maintain stable growth of foreign trade.
“Since this year, China has taken the initiative to launch a series of practical foreign trade measures based on its own economic development needs. This will not only help achieve a higher level of opening up, but also inject a warm current into the healthy development of global trade.” China International Economic Exchange Center Lead researcher Zhang Yansheng said.
Post time: Oct-18-2018