Global Trade Alert

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.