New Export Rebates Rules May 2022
The State Taxation Administration ("STA") has recently issued the Announcement on Relevant Matters Concerning Further Facilitating the Handling of Export Rebate to Promote Steady Growth of Foreign Trade (the "Announcement"), in which articles one to three have initially taken effect since May 1, 2022.
The Announcement involves improving the classified administration of enterprises eligible for export tax rebate (exemption), optimizing the record-filing documentation for export tax rebate (exemption), perfecting the export rebate policy for processing trade, simplifying the materials submission for export tax rebate (exemption), and expanding the reminders for export tax rebate (exemption). Among others, the Announcement adjusts the classified administration of enterprises eligible for export tax rebate (exemption) in two aspects: (1) requiring taxation authorities to timely complete the assessment work for the administration category; (2) facilitating the re-assessment for enterprises subject to tax payment credit repair. The Announcement specifies that enterprises subject to circumstances of tax payment credit repair may timely apply to taxation authorities for re-assessment of their respective administration category, without regard to the restriction set by the Measures for the Classified Administration of Enterprises Eligible for Export Tax Rebate (Exemption), that is, "a Class 4 export enterprise shall not be assessed as another administration category within 12 months upon its assessment".