ANNOUNCEMENT 21 Apr 2014

On 21 April 2014, the Ministry of Finance issued Notice No. 8 to extend a similar notice published in 2011 (Notice No. 39 of that year) to provide conditional relief for selected domestic LNG companies. The meausre is announced to be in force until 2020.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

PRC State Council Tariffs and Tax Standards Commission, April 21st, 2014. (财关税[2014]8号 关于调整享受税收优惠政策的天然气进口项目的通知)
http://gss.mof.gov.cn/zhengwuxinxi/zhengcefabu/201405/t20140521_1081979.html

Ibid., (via State Taxation Administration), August 1st, 2011. (财关税[2011]39号 关于对2011—2020年期间进口天然气及2010年底前“中亚气”项目进口天然气按比例返还进口环节增值税有关问题的通知)
http://www.chinatax.gov.cn/n810341/n810765/n812156/n812474/c1186477/content.html

Inception date: 01 Jan 2011 | Removal date: 29 Dec 2020
Still in force

Import tariff

When import prices are above domestic wholesale prices, 11 enumerated Chinese importers will benefit from a VAT reduction to compensate for the difference.

AFFECTED SECTORS

 
Inception date: 01 Jan 2011 | Removal date: 29 Dec 2020
Still in force

Tax or social insurance relief

According to the Notice, as long as the import price is higher than the local wholesale market price between 2011 and 2020, the imported liquefied natural gas for Central Asian Pipeline, Shanghai, Jiangsu, Guangdong, and Fujian projects can benefit from import VAT refund. With the new notice, also selected companies in Hainan may apply for the benefit.