ANNOUNCEMENT 01 Sep 2014
September 1st, 2014 - China announced that it would implement a scheme whereby certain goods leased to overseas lessees for a term of more than five years would be eligible for export VAT and consumption tax refunds on those goods.
NUMBER OF INTERVENTIONS
PRC State Administration of Taxation, September 1st 2014. (财税〔2014〕62号—关于在全国开展融资租赁货物出口退税政策试点的通知)
On the 1st of September 2014, China's State Administration of Taxation announced a policy that was piloted in the Dongjiang Free Port Trade Zone of Tianjin was to be implemented nationally.
The policy allowed exporters leasing certain equipment to overseas lessees for periods of more than five years to be eligible for export tax VAT and consumption tax refunds on those goods.
The equipment to which the announcement refers can be seen in Order of the PRC Ministry of Finance and State Administration of Taxation No.50, article 21:
'Fixed assets referred to in the preceding paragraph refer to machines, machinery, means of transport and other equipment, tools and appliances related to operation and production that have a useful life of more than 12 months.'
In addition, any oil and gas exploration equipment detailed in Circular No. 39/2012 is also eligible (see related measure for more info on this announcement). This refers to the HS codes included in this intervention.
The announcement was a direct response to the State Council's Guobanfa 19 of 2014 - see related measure.