China Supports Export Rebates
The State Taxation Administration ("STA") and nine other authorities have jointly released the Circular on Further Enhancing Support for Export Rebates to Promote Steady Growth of Foreign Trade (the "Circular").
The Circular sets out 15 measures, including strengthening the connection between export credit insurance and export rebate policies, perfecting export rebate policies for processing trade, and unleashing the potential of exit rebate policies, in three aspects, such as further increasing the policy support for enterprises, making tax refund procedures more convenient, and optimizing the business environment for export enterprises. According to the Circular, the processing time for export rebates will be shortened, from seven working days for normal export rebates in 2021 on average to within six working days in 2022. Efforts should be made to fully realize the paperless return, and raise the efficiency of tax refund. The Circular also calls for strengthening the sharing of credit rating information among the customs, taxation, foreign exchange and other departments, introducing market-oriented credit rating agencies, providing high-quality rating services, improving the timeliness of the dynamic adjustments to the enterprise category under export rebates, and lawfully giving incentives for honest behaviors and punishments for dishonest behaviors.