ANNOUNCEMENT 01 Jan 2009In January 2009, the government of China announced a targeted tax change.
NUMBER OF INTERVENTIONS
Notice on Suspension of Value-added Tax Refunds for Purchases of Domestic-made Equipment by Foreign Companies:
In January 2009, Chinese authorities published a notice on the "Suspension of Value-added Tax Refunds for Purchases of Domestic-made Equipment by Foreign Companies".
According to the notice, the value-added tax refund system for foreign companies purchasing domestic-made equipment was abolished. As a result, the same treatment was reserved to foreign companies as to domestic ones, and the trade-distortive incentive for foreign companies to buy Chinese products was reduced.