IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Outflow (subsidised)

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Oct 2014 | Removal date: open ended
Still in force

Tax-based export incentive

On 1 October 2014, China extended the tax refund policy on leased vessels and marine structures nationwide. The policy was previously restricted to a pilot program in the Tianjin area (see related measure). Companies registered in China that export such vessels can now reclaim part of the expenditure on their inputs.
 
All vessel-leasing and marine structure contracts to foreign renters with a minimum duration of 5 years are entitled to the new national VAT refund policy. The eligible vessels include planes, engines, trains, etc. All exported goods purchased for leasing purposes can also benefit from consumption tax refund. 
 
For more detail definition and refund calculation, please refer to the Notice No. 50 of 2008 and Notice No. 39 of 2012, issued by State Administration of Taxation. 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

493 Ships
8901 Cruise ships, excursion boats, ferryboats, cargo ships, barges and similar vessels for the transport of persons or goods.
890110 Cruise ships, excursion boats and similar vessels principally designed for the transport of persons; ferryboats of all kinds
890120 Tankers
890190 Other vessels for the transport of goods and other vessels for the transport of both persons and goods

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