ANNOUNCEMENT 01 Jan 2009

In January 2009, the government of China announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE



Notice on Suspension of Value-added Tax Refunds for Purchases of Domestic-made Equipment by Foreign Companies:
http://www.chinatax.gov.cn/n8136506/n8136593/n8137537/n8138502/8750612.html


Inception date: 01 Jan 2009 | Removal date: open ended
Still in force

Tax or social insurance relief

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.