China’s Ministry of Finance and the State Taxation Administration issued guidance (Announcement [2024] No. 15) on 15 November 2024 that sets out adjustments made to the export tax rebate policies for aluminum and other products. The new policies apply as from 1 December, with the rebate rate based on the export date indicated on the customs declaration.
The export tax rebate is long-standing trade policy instrument used by the Chinese government to assist exporters and generally enhance the competitiveness of exported goods. Under this policy, which the authorities update periodically, exporters can obtain a refund of VAT and consumption tax paid during the production and distribution process.
The salient points in the November announcement are as follows:
Considering the impact of the above products on the environment, the Chinese government intends to regulate them to achieve sustainable development. However, at the same time, the reduction in tax rebate subsidies will raise the export costs of exporters, which may lead to a decrease in the volume of exports. Finally, the tax authorities impose strict requirements for exporters seeking to benefit from the export tax rebate and the documentation required for the rebate declaration. Affected enterprises should ensure they adhere to the requirements and are able to support rebate applications with robust documentation.
Gordon Gao
Jack Shen
BDO in China
The export tax rebate is long-standing trade policy instrument used by the Chinese government to assist exporters and generally enhance the competitiveness of exported goods. Under this policy, which the authorities update periodically, exporters can obtain a refund of VAT and consumption tax paid during the production and distribution process.
The salient points in the November announcement are as follows:
- The export tax refund for aluminum and copper products, and chemically modified animal, vegetable or microbial oils and fats is eliminated.
- The export tax refund rate for certain finished oils, photovoltaic products, batteries and certain non-metallic mineral products is reduced from 13% to 9%.
BDO Insight
Considering the impact of the above products on the environment, the Chinese government intends to regulate them to achieve sustainable development. However, at the same time, the reduction in tax rebate subsidies will raise the export costs of exporters, which may lead to a decrease in the volume of exports. Finally, the tax authorities impose strict requirements for exporters seeking to benefit from the export tax rebate and the documentation required for the rebate declaration. Affected enterprises should ensure they adhere to the requirements and are able to support rebate applications with robust documentation.Gordon Gao
Jack Shen
BDO in China