Tax Refund Policy for Domestic Equipment

Article 1 In order to standardize the management of value-added tax refund for the procurement of domestically produced equipment by research and development institutions (R&D institutions), this Article 2

Article 2 Eligible research and development organizations (hereinafter referred to as R&D organizations) purchasing domestically produced equipment shall refund the full amount of value-added tax (hereinafter referred to as the refund for purchasing domestically produced equipment) in accordance with these Measures.

Article 3 The specific conditions and scope of R&D organizations and domestically produced equipment referred to in Article 2 of these Measures shall be implemented in accordance with the provisions of Announcement No. 91.

Article 4 The tax authorities in charge of R & D institutions tax rebates (hereinafter referred to as the competent tax authorities) is responsible for handling R & D organizations to purchase domestic equipment tax rebates for the record, audit and follow-up management.

Article V R & D institutions to enjoy the procurement of domestic equipment tax rebate policy, should be the first time to declare the tax rebate, with the following information to the competent tax authorities for the tax rebate filing procedures:

(a) in line with the provisions of Article I, Article II of Announcement No. 91 of the R & D institutions qualification information.

(b) fill in the content of the true and complete "export tax rebate (exemption) for the record". The filing form is published in the "Announcement of the State Administration of Taxation on Issues Related to Export Refund (Exemption) Tax Declaration" (No. 16 of 2018). Among them, "enterprise type" is "other units"; "export tax refund (exemption) management type" is "domestic R&D organization" or "domestic R&D organization" based on the qualification materials. Institutions" or "foreign-funded R & D center"; other columns according to the instructions for filling out the form to fill in.

Before the issuance of these measures, has been for the procurement of domestic equipment for the record of the R & D institutions, do not need to apply again for the record.

Article 6 The R & D institutions complete information for the record, "export refunds (exemptions) tax filing form" fill in the content to meet the requirements, signatures, seals complete, the competent tax authorities shall be filed. Filing information or fill in the content does not meet the requirements, the competent tax authorities shall inform the R & D organization, to be corrected and then filed.

Article VII has been filed for the R & D institutions, "export refunds (exemption) tax filing form" in the content of the change, should be changed within 30 days from the date of change, with the relevant information to the competent tax authorities for the record change.

Article VIII of the R & D institutions in the event of dissolution, bankruptcy, withdrawal, and other law should terminate the procurement of domestic equipment tax rebate matters, should hold the relevant information to the competent tax authorities for the record withdrawal. The competent tax authorities shall, in accordance with the provisions of the settlement of tax refunds, for the record withdrawn.

Research and development organizations for the cancellation of tax registration, should be the first to the competent tax authorities for the withdrawal of tax rebates for the record.

Article IX foreign-funded R & D centers due to changes in their own conditions no longer meet the conditions set out in Article II of Announcement No. 91, should be withdrawn from the date of the change in conditions within 30 days of the tax rebate filing, and from the date of the change in conditions, to stop enjoying the procurement of domestically produced equipment rebate policy. Not in accordance with the provisions of the withdrawal of the tax rebate filing, and continue to declare the procurement of domestic equipment tax rebates, in accordance with the provisions of Article XIX of these measures.

Article 10 of the new R & D institutions, change or withdrawal, the competent tax authorities should be based on the approved R & D institutions to provide the list of the lead department and the relevant qualifications indicated the start and end of the time, to deal with the relevant tax rebate matters.

Article 11 The declaration period for the tax rebate of R&D institutions for the procurement of domestic equipment shall be from the first day of the month following the date of procurement of domestic equipment (based on the date of invoice issuance) to April 30 of the following year for each VAT declaration period.

If the research and development organization fails to declare the tax refund within the specified period, it can declare the tax refund after collecting all the relevant certificates and electronic information according to Article 4 of the Announcement of the Ministry of Finance and the State Administration of Taxation on the Clarification of VAT Policies on the Leasing of State-owned Agricultural Land and Other Policies (No. 2 of 2020).

Article 12 The filed R&D organizations shall, within the tax rebate declaration period, apply for tax rebate for purchasing domestically produced equipments to the competent tax authorities with the following information:

(1) Tax Refund Declaration Form for the Purchase of Goods for Self-use. The declaration form is published in the Announcement of the State Administration of Taxation on Matters Relating to Optimization and Integration of the Export Tax Refund Information System to Better Serve Taxpayers (No. 15 of 2021). When filling out the form, you should fill in the remarks column "scientific and technological development, scientific research, teaching equipment".

(B) procurement of domestic equipment contracts.

(C) VAT invoices, or issued from January 1, 2021 to the release of this approach before the ordinary VAT invoices (excluding ordinary VAT invoices in the roll, the same below).

(d) Other information required by the competent tax authorities.

The above VAT invoices should have been recognized as "for export tax rebate" through the comprehensive service platform for VAT invoices.

Article 13 The research and development organizations which are general taxpayers of VAT shall declare the tax rebate for the procurement of domestic equipment, and the competent tax authorities shall handle the tax rebate in accordance with the provisions if they are in compliance with the regulations after examination.

If the R&D organization declares the tax rebate for the procurement of domestic equipments, and it belongs to one of the following cases, the competent tax authority shall take the investigation by letter or other ways to confirm that the VAT invoice is true, and the equipments listed in the invoice have been declared for tax payment in accordance with the regulations, then the tax rebate can be processed:

(1) Doubtfulness is found in the audit, and doubt can not be ruled out by the verification.

(ii) General VAT taxpayers using ordinary VAT invoices to declare tax refund.

(3) Non-general VAT taxpayers declaring tax refund.

Article 14 The tax refundable amount for the procurement of domestic equipment by R&D organizations shall be the tax amount stated in the VAT invoice.

Article 15 The VAT invoices obtained by research and development organizations for the procurement of domestically produced equipment shall not be declared for tax rebate if they have been used for input tax credit, and shall not be used for input tax credit if they have been used for tax rebate.

Article 16 The competent tax authorities shall establish R & D institutions to purchase domestic equipment tax rebate account, record the model of domestic equipment, invoice issuance time, price, the amount of tax refunded and so on.

Article 17 The domestic equipment for which VAT refund has been processed, within 3 years from the date of VAT invoice issuance, if the ownership of the equipment is transferred or moved to other uses, the R&D organization shall pay the refunded tax to the competent tax authorities in accordance with the following formula.

The amount of tax to be paid = the amount of tax specified in the VAT invoice × (depreciated value of the equipment ÷ original value of the equipment)

Depreciated value of the equipment = the amount specified in the VAT invoice - accumulated depreciation

Accumulated depreciation is calculated in accordance with the relevant provisions of the Law on Enterprise Income Tax.

Article 18 The R&D organization involved in major tax violations and breach of trust cases, in accordance with the "State Administration of Taxation on the issuance of "major tax violations and breach of trust cases of information publication methods" of the announcement" (No. 54 of 2018) to be published information, R&D organizations should be from the date of the publication of the case information to stop enjoying the procurement of domestic equipment tax rebate policy, and within 30 days for the tax rebate filing withdrawn. R & D institutions illegal breach of trust case information to stop the publication and withdrawn from the bulletin board, since the date of withdrawal of information, R & D institutions can re-apply for the procurement of domestic equipment tax rebate filing, its procurement of domestic equipment can continue to enjoy the tax rebate policy. Not in accordance with the provisions of the tax rebate for the record withdrawn, and continue to declare the procurement of domestic equipment tax rebate, in accordance with the provisions of Article XIX of these measures.

Article 19 The research and development organizations to take fake procurement of domestic equipment tax rebate qualifications, fictitious procurement of domestic equipment business, VAT invoices declared both credit and tax rebate declaration, provide false tax rebate declaration information and other means to fraudulently procurement of domestic equipment tax rebate, the competent tax authorities shall recover the refunded tax, and in accordance with the relevant provisions of the Law on Taxation Collection and Management.

Article 20 This approach is not clear on other matters of tax rebate management, cf. the implementation of the relevant provisions of the export tax rebate.

Article 21 The implementation period of these Measures is from January 1, 2021 to December 31, 2023, subject to the date of issuance of VAT invoices.