According to the provisions of the above article, in order to support the development of certain industries and enterprises, China has formulated some preferential policies in respect of value-added tax (VAT), and in the preferential method, there are those who give tax exemption directly, and there are those who levy tax first and then return the tax.In 1998, this column had made a special introduction to the preferential policies of value-added tax, in view of the large adjustment of the tax policy in the recent years, some preferential policies have been invalidated, and new In view of the large adjustment of tax policies in recent years, some preferential policies have been invalidated and new preferential policies have been introduced one after another, in order to facilitate the taxpayers to understand and master the existing preferential policies of VAT, the contents are introduced as follows.
I. Preferential Policies for Civil Affairs Welfare Enterprises and School-run Enterprises
(1) Civil Affairs Welfare Enterprises. Welfare enterprises organized by the civil affairs departments, streets, townships, resettlement of four disabled persons accounted for more than 35% of the enterprise production staff, a sound management system, the establishment of a "four tables and a book", namely, the basic situation of the enterprise table, the disabled workers work arrangement table, the enterprise staff salary table, profit and tax use distribution table, disabled workers roster, and by the civil affairs, If the enterprise passes the inspection and acceptance of the tax authorities and is issued with a Certificate of Social Welfare Enterprise, it can enjoy the preferential policies on value-added tax granted by the State (civil welfare enterprises engaging in the wholesaling and retailing of commodities are not entitled to such preferential policies). The degree of preferential policies for enterprises with four disabled persons is different: if the four disabled persons account for more than 50% of the production staff of the enterprise, the enterprise shall first pay the VAT due to the tax authorities according to the provisions of the tax law, and then return all the VAT paid after the examination by the tax authorities; if the proportion of the four disabled persons is more than 35%, but not up to 50%, the enterprise may be granted partial VAT preferential policies if the enterprise incurs a loss, and the enterprise may also be granted partial VAT preferential policies for the four disabled persons. If the proportion of persons with four disabilities exceeds 35% but does not reach 50%, if the enterprise incurs a loss, it may be given a partial or full refund of the collected VAT, and the specific proportion shall be limited to the extent that it does not incur a loss. However, the following items of civil welfare enterprises are not entitled to the above tax concessions: production and sale of goods subject to consumption tax by civil welfare industrial enterprises, direct sale of purchased goods and commissioned processing of goods by foreign organizations, and sale of exported goods to foreign trade enterprises or other enterprises.
(ii) school-run enterprises. To be able to enjoy the following preferential policies for school-run enterprises, must be a school-run enterprises organized by the education sector under the general education category of schools, excluding private staff schools and various types of adult schools (e-learning universities, evening universities, industrial universities, enterprises organized by the staff school, etc.) organized by the school-run enterprises; the second school-funded by the school responsible for the operation and management of business income to the school all. The original taxpaying enterprises turned into school-run enterprises, schools absorbing outside investment on the basis of the original school-run enterprises organized by the joint venture, schools and other enterprises, units, individuals jointly organized by the enterprise, the school will be the school-run enterprises sublet or contracted to outside units, individuals, shall not be entitled to enjoy the preferential tax policies of the school-run enterprises. Taxable goods produced by school-run enterprises that are used in the teaching and scientific research of the school shall be exempted from value-added tax after strict examination and confirmation.
II. Prosthetic limbs, wheelchairs and orthopedic devices for the exclusive use of disabled persons are exempted from value-added tax. Individuals with disabilities are exempted from value-added tax on the provision of processing and repair and fitting services.
Thirdly, the production and distribution units of the national designated enterprises (see the annex to Cai Shui Zi No. 060 of 1994, "Circular of the Ministry of Finance and the State Administration of Taxation on Several Issues of Tax Policy on Value-added Tax") are exempted from value-added tax on the border teas which are exclusively for the consumption of the ethnic minorities. Border Tea refers to tightly pressed tea made of black tea, black tea, old green tea and green tea steamed, pressurized, fermented and pressed into different shapes, which is specially sold to the border ethnic minority areas. The preferential VAT policy was implemented until the end of 2005.
Four, on the waste materials recycling business units to sell their acquisition of waste materials exempt from value-added tax. Waste materials, refers to all kinds of waste materials produced in the process of social production and consumption, including after selection, organization and other simple processing of all kinds of waste materials. Products processed and produced with waste materials do not enjoy the policy of VAT exemption for waste materials. The waste materials recycling business unit shall account for the waste materials and other goods separately, and those who cannot accurately account for them separately shall not enjoy this benefit.
V. Exemption of value-added tax for some products of comprehensive utilization of resources. Since January 1, 2001 onwards, the following goods to implement the policy of value-added tax refund: 1. The use of coal mining process associated with the abandonment of mother-of-pearl shale production and processing of shale oil and other products. 2. In the production of raw materials mixed with not less than 30% of waste asphalt concrete production of regenerative asphalt concrete. 3. The use of municipal garbage produced by the power. 4. In the production of raw materials mixed with not less than 30% of coal gangue, coal gangue, stone, and other goods. 5. 4. In the production of raw materials mixed with not less than 30% of the gangue, coal, fly ash, coal-fired boiler slag (excluding blast furnace slag) and other waste cement production. The following goods to implement the policy of halving the value-added tax payable: 1. the use of coal gangue, coal sludge, oil shale and wind power production of electricity. 2. some of the new wall materials products.
Sixth, the enterprise to three leftovers and the second small payroll as raw materials for the production and processing of comprehensive utilization of products, by the end of 2005 by the tax authorities to implement the immediate refund method.
Three leftovers refer to: logging residue (refers to branches, tree tops, bark, leaves, roots and rattan, shrubs, etc.); timber residue (refers to timber cut-off); processing residue (refers to the board veneer, slats, wood and bamboo cut-off, sawdust, crushed veneer, wood cores, shavings, wood, edging residue, etc.).
Small fuelwood including: sub-processed timber (refers to the material is lower than the minimum grade of coniferous and broadleaf tree processing logs but has a certain value of sub-processed logs, of which the Northeast, Inner Mongolia according to the ZB B68009-89 standard, the South and other regions according to the ZB B68003-86 standard); small diameter timber (refers to the length of less than 2 meters or the diameter of less than 8 centimeters of the small original); wood, pine poles, foot, and other wood. (refers to the length of less than 2 meters or the diameter grade of less than 8 centimeters of small logs, pine poles, scaffolding poles, miscellaneous wood poles, short logs, etc.); fuelwood.
Comprehensive utilization products include: 1. wood and bamboo fiber boards; 2. wood and bamboo particle boards; 3. blockboards; 4. wood and bamboo chips; 5. floor slabs; 6. wood spinning products; 7. hydrolyzed alcohol; 8. furfural; 9. fodder yeast; 10. coniferous fodder; 11. charcoal; 12. activated charcoal; 13. quebracho extractives; 14. boards and squares of a length of less than 2 meters (excluding 2 meters) (only those processed from timber making) Cut-offs and board skins processed from the board square timber); 15. wood, bamboo beads, wood, bamboo toothpicks, small plywood, ash strips, wood miscellaneous parts, wood and bamboo veneer, leaf roots, sawdust and its comprehensive utilization of products (oxalic acid, sawdust, charcoal sticks, etc.), ice lollies and ice-cream sticks, ice-cream scoops, bamboo crumbled boards, pressed and scraped boards.
But the above preferences do not include the portion exported by enterprises on their own account or commissioned and sold to exporters and foreign trade enterprises in cities and counties.
VII. Weapons and their spare parts, ammunition, military training equipments, troop equipments (referring to the human quilts, ordnance equipments and horse equipments) produced by the units of army system for the troops are exempted from value-added tax (VAT); clothing of civilian police produced by the munitions factories, material supply and marketing units and allocated to the public security system and the national security system are exempted from VAT; products produced by the munitions factories for the purpose of production of military products in collaboration with each other are exempted from VAT; and products of the units of army system engaged in processing, repairing and repairing of military products are exempted from VAT. units of the military system are exempted from value-added tax on business income from processing, repairing and mending of weapons and their parts, ammunition, military training equipment and troop equipment.
Military factories belonging to the military-industrial system are exempted from value-added tax on military products which are included in the military production plan of the competent military-industrial department and are sold to the army, the People's Armed Police Force and the military factories according to the price of the military products; military factories are exempted from value-added tax on the production and sale of weaponry and equipment to public security, judicial and national security systems; military factories provide each other with goods for the production of military products and special non-standardized non-standardized goods provided by each other for the manufacture of military products. The special non-standard equipments, tools, molds, gauges, etc. provided by military factories to each other for the production of military products are exempted from value-added tax; the military products produced by general industrial enterprises are exempted from value-added tax only for the guns, cannons, mines, bullets, military ships, airplanes, tanks, radars, radios, diesel engines for ships, various kinds of artillery sights and sights, and are exempted from value-added tax for finished products in the assembly enterprises; special equipments, instruments and meters imported by military factories are exempted from value-added tax for the special equipments, instruments and meters imported by military factories with approval of the Ministry of General Logistics and the Commission of Science and Technology for National Defense. Imported special equipment, instruments and meters and their spare parts shall be exempted from import VAT. Military products and goods produced by munitions factories or allocated by munitions departments exported by units of the military system are exempted from value-added tax at the production stage.
VIII. Income from confiscated goods is not subject to VAT. For the confiscated goods investigated and dealt with by the penalty-enforcement departments and units, whether they are publicly auctioned off, handed over to the state to designate the sales unit for sale, or some belong to the management of the franchised authorities or franchised enterprises, such as gold and silver (excluding gold and silver jewelry), foreign currencies, securities and non-prohibited export of cultural relics, are handed over to the franchised authorities or franchised enterprises to collect or acquire, as long as the revenue obtained by the penalty-enforcement departments and units as the income from the confiscation The value-added tax shall not be levied as long as the departments and units enforcing the penalties pay the revenues obtained as confiscated revenues to the Treasury.
IX. No value-added tax shall be levied on the income derived from the cost of licenses, permits and related certificates issued by the state management authorities in the exercise of their management functions.
X. The maintenance fee of the rural power grid, which is collected from the users by the rural power management stations together with the tariff, is exempted from value-added tax (VAT).
XI. Sewage treatment fees collected with water tariffs by waterworks (companies) entrusted by governments and authorities at all levels are exempted from value-added tax (VAT).
XII. Taxpayers selling used goods (including sales of used goods by used goods business units and sales of used taxable fixed assets by taxpayers) shall be subject to VAT at a reduced rate of 4%. Taxpayers selling used motor vehicles, motorcycles and yachts subject to consumption tax shall be subject to a 50% reduction of value-added tax at a rate of 4% if the selling price exceeds the original value, and shall be exempted from value-added tax if the selling price does not exceed the original value. Used motor vehicle business units selling used motor vehicles, motorcycles and yachts shall levy VAT at a reduced rate of 4%. Units and individual operators are temporarily exempted from VAT on the sale of other fixed assets belonging to goods that they have used.
Thirteen, before the end of 2010, the general taxpayers of VAT selling their self-developed and produced software products, and the general taxpayers of VAT selling their self-produced integrated circuit products (including monocrystalline silicon wafers) will be subjected to the policy of immediate refund of the part of VAT with the actual tax burden of VAT exceeding 3% after the VAT is levied at the statutory tax rate of 17%. The refunded tax will be used by the enterprises for research and development of software products and expansion of reproduction, and will not be regarded as taxable income for enterprise income tax and will not be subject to enterprise income tax.
General VAT taxpayers will redesign, improve, convert and other localization modifications of the imported software (excluding purely Chinese characterization of the imported software) and then sell it to the outside world, and the software it sells can enjoy the policy of instant VAT refund in accordance with the relevant provisions of self-developed software products.
Enterprises exporting on their own or entrusting or selling software products to export enterprises for export shall not be subject to VAT refund.
The recognized software production enterprises shall be exempted from customs duties and tariffs on the import of equipment for their own use, as well as on the import of technology (including software) and ancillary parts and spare parts along with the equipment in accordance with the contract, without the issuance of a confirmation letter or taking up of the total amount of investment, except for the "Catalogue of Imported Commodities Not Exempted from Duty for Foreign-invested Projects" and "Catalogue of Imported Commodities Not Exempted from Duty for Domestic-invested Projects" as stipulated in the Document No. 37 of the State Council [1997]. Except for the commodities listed in the Catalogue of Imported Commodities for Foreign Investment Projects and the Catalogue of Imported Commodities for Domestic Investment Projects which are not exempted from tax, they are exempted from tariffs and import-related VAT.
Investment of more than 8 billion yuan or integrated circuit line width of less than 0.25 μm integrated circuit production enterprises, the import of production raw materials for their own use, consumables, exemption from customs duties and import-related value-added tax.
Fourteenth, before the end of 2005, the county-level state-owned private trade enterprises and supply and marketing societies in ethnic trade counties to sell goods, according to the actual amount of VAT paid first and then return 50%; the above enterprises restructuring of the nature of the change in ownership, you can still enjoy this preference. However, this policy is not applicable to the above enterprises exporting on their own or commissioning and selling goods exported by export enterprises and foreign trade enterprises of cities and counties. Sales of goods by state-owned national trade enterprises and grass-roots supply and marketing societies below the county (excluding the county) are exempted from VAT.
Fifteen, before 2005, the following publications shall be subject to VAT refund after levy: 1. the organs and publications of the Chinese **** Producer's Party and the organizations of the democratic parties at all levels; 2. the organs and publications of the people's governments at all levels; 3. the organs and publications of the people's congresses, the Chinese People's Political Consultative Conference (CPPCC), the labor unions, the **** Youth League, and the women's federation at all levels; 4. the organs and publications of the military; 5. the organs and publications of the new Chinese Communist Party and the Chinese Communist Party; and 6. The organs and publications of military departments; 5. 6 organs and publications of Xinhua News Agency: Reference News, Half-Moon Talk, Hope, Selected Internal References, International Internal References, Reference Materials; 6. Student textbooks of schools and universities, as well as newspapers and publications specially published for children and teenagers; 7. Science and technology books and journals. The VAT refundable link for the above publications is the publishing link. Among them, 1-4 items of newspapers and periodicals of organs at all levels, the scope of VAT refunded after the first levy is within one unit of one newspaper and one periodical.
Before the end of 2005, publications sold by Xinhua bookstores and rural supply and marketing cooperatives in counties (including county-level cities) and below will be subject to VAT refund. The refunded tax is earmarked for the construction of distribution outlets and information systems, and is no longer recognized as current profit and loss. Xinhua bookstores in counties (including county-level cities) and below include Xinhua bookstores at the prefecture and county (including county-level cities) levels combined into one, but excludes Xinhua bookstores established at the county level in cities.
Before 2005, revenues from the sale of movie prints by movie studios approved and established by the State Council were exempted from value-added tax.
Sixteen, state-owned grain purchasing and marketing enterprises must sell grain according to the principle of selling at parity. State-owned grain purchasing and marketing enterprises that undertake the task of grain storage are exempted from value-added tax on the sale of grain. Exemption from value-added tax state-owned grain purchasing and marketing enterprises, by the county (city) State Taxation Bureau in conjunction with the same level of finance, food departments to determine the audit. The following items operated by other grain enterprises are exempted from VAT: (1) grain for military use: grain supplied to the Chinese People's Liberation Army and the Chinese People's Armed Police Force at military prices on the basis of military grain stamps and military grain supply certificates. (2) Disaster Relief Grain: Grain approved by the people's government at or above county level and supplied to disaster victims in need of assistance at the stipulated selling price on the basis of the Disaster Relief Grain Tickets (Certificates). (3) Reservoir immigrant rations: food approved by the people's government of the county (including) or above, and supplied to reservoir immigrants at the prescribed sales price with the reservoir immigrant ration tickets (certificates). Except for these three items, all other grains operated by other grain enterprises are subject to VAT. For the business of selling edible vegetable oil, the sale of edible oil from government reserves is exempted from VAT, while the sale of other edible vegetable oils is always subject to VAT. State-owned grain enterprises undertaking grain collection and storage tasks and other grain enterprises operating the above tax-exempted items, as well as enterprises having the business of selling edible vegetable oil from government reserves, are required to be examined and recognized as tax-exempted by the competent tax authorities; and shall not be exempted from tax without being reported to and examined and recognized by the competent tax authorities.
Seventeen, the State Material Reserve Bureau system sales of reserve materials, take the first levy and then return the method, by the tax department in accordance with the collection of value-added tax, the financial sector will have been levied tax returned to the taxpayer.
Eighteen, feed production enterprises, with provincial tax authorities recognized by the feed quality testing institutions issued by the feed product qualification certificate, approved by the provincial tax authorities, its feed products can be exempted from value-added tax. The scope of tax-free feed products includes:
(1) Single bulk feed. It refers to the products or their by-products made from one kind of animals, plants, microorganisms or minerals. Its scope is limited to bran, lees, fish meal, grass feed, feed grade calcium phosphate and meal products other than soybean meal such as canola meal, cottonseed meal, sunflower meal and peanut meal.
(ii) Mixed feed. Refers to more than two kinds of single bulk feed, grain, grain by-products and feed additives in accordance with a certain proportion of configuration, in which the single bulk feed, grain and grain by-products of the participation ratio of not less than 95% of the feed.
(c) Combined feed. Refers to different feeding objects, feeding objects of different stages of growth and development of the nutritional needs of a variety of feed ingredients according to the feed formula by industrial production, the formation of feed to meet all the nutritional needs of feeding animals (in addition to water) of the feed.
(d) composite premix. Refers to the amount of feed products in accordance with national standards to provide a comprehensive animal feeding the corresponding stage of the required trace elements (4 or more), vitamins (8 or more), by trace elements, vitamins, amino acids and non-nutritive additives in any two or more categories of components and carriers or diluents in a certain proportion of the configuration of a homogeneous mixture.
(v) Concentrated feed. Means a homogeneous mixture of proteins, compound premixes and minerals configured in a certain proportion.
nineteen, the following agricultural production materials are exempted from value-added tax.
(i) agricultural films;
(ii) the production and sale of nitrogenous fertilizers other than urea, phosphorus fertilizers other than diammonium phosphate, potash fertilizers and compound fertilizers with tax-exempted fertilizers as the main raw material (the cost of tax-exempted fertilizers used by an enterprise for the production of compound fertilizers is higher than 70% of the cost of all the fertilizers used in the raw material). The term "compound fertilizer" refers to chemical fertilizers made by chemical or physical processing of at least two of the three nutrients of nitrogen, phosphorus and potassium in marked amounts, including compound fertilizers made by chemical methods only and mixed fertilizers made by physical methods only (also known as blended fertilizers).
(3) The production and sale of abamectin, aminopyralid, chlorothalonil, phenothiazoxystrobin, bensulfuron, oxacillin, imidacloprid, allyl chrysanthemum, pyridaben, diclofop, diclofop, diclofop, aminopyralid, amidacloprid, doxycycline, doxycycline, dimetryn, diazinphos-methyl, fluazinphos, fluridone, high efficiency chlorpyrifos, pynargite, meadowlachlor, methiocarb, methyl thiomyl, methametryn, methyl isofluron, methyl(beta) chlorpyrifos, methoxychlorothionin, methionine, methionine, methionine, methionine, methyl chlorphenolate Tick, Methyl(ethyl)pyrimethanil, Fenoxaprop, Quizalofop, Iguanamycin, Imidacloprid, Methomyl, Mirex, Alfalfa silver-striped nightshade nucleopolyhedrovirus, Thifensulfuron, Cyfluthrin, Triazophos, Triadimefon, Monocrotophos, Difenocrotophos, cis-Cypermethrin, Aldicarb, Alizarin, Phorate, Phosmet, Cyclanocarbophos, Cyclanocobalamonitrile, Isofluoroethyl, B-alpha-combination, Ethopropanocarbamidon, Aminomethylphosgene, Atrazine. The following is a list of the most popular products in the world.
(iv) Wholesale and retail seeds, seedlings, fertilizers, pesticides, agricultural machinery.
Twentieth, exemption from value-added tax for the business of repairing wagons for the system by units within the railroad system.
Twenty-one: From January 1, 2001 to December 31, 2002, some of the enterprises of numerically controlled machine tools (the list of which is annexed to Cai Shui [2001] No. 119, "Circular of the Ministry of Finance and the State Administration of Taxation on the Issues of Return of Value-added Tax on Numerically Controlled Machine Tool Products") shall be subject to the return of value-added tax on the products manufactured and sold by the enterprises of numerically controlled machine tools (see the annex of the product catalog above), and the returned tax shall be used for the exclusive use of the enterprises of numerically controlled machine tools. The refunded tax shall be used exclusively for the research and development of CNC machine tools.
22. Before the end of 2005, the imported seeds (seedlings), breeding animals (poultry), fish seeds (seedlings) and non-profit breeding sources of wild animals and plants for breeding purposes, which are included in the annual import plan and are closely related to the production of agriculture and forestry {see Cai Shui [2001] No. 130, "Imported Seeds (Seedlings), Breeding Animals (Poultry), Fish Seeds (Fryers) and Non-Profit Breeding Sources of Wild Animals and Plants for the Period of the "Tenth Five-Year"," for the list of the specific items. The Ministry of Finance, State Administration of Taxation on the "Tenth Five-Year Plan" period imported seeds (fry) breeding livestock (poultry) fish seeds (fry) and non-profit breeding wildlife seed sources of tax issues attached to the "VAT exemption in the import process. Pets and other ornamental objects imported for ornamental use are not entitled to this benefit.
Twenty-three, from January 1, 2001 to December 31, 2002, on the Cai Shui [2001] No. 132 "Ministry of Finance, State Administration of Taxation on the VAT on mold products first levied and then returned to the issue of the notice" listed in the 144 professional mold production enterprises production and sales of mold products to implement the provisions of the first levy of value-added tax, and then according to the actual payment of value-added tax returned 70% of the amount of approach! The refunded tax shall be specially used for the research and development of mold products. The above mentioned mold enterprises exporting or commissioning, selling to export enterprises and foreign trade enterprises of cities and counties exporting goods are not applicable to the above method of collecting VAT first and then returning it.
Twenty-four, from January 1, 2001 to December 31, 2002, the 221 professional casting and forging enterprises listed in the Annex to the Circular of the Ministry of Finance and the State Administration of Taxation on the Issues of Value-added Tax on Casting and Forging Products to be Collected and Returned after the Collection of Value-added Tax (Cai Shui [2001] No. 141) will implement the implementation of the method of collecting value-added tax according to the regulations and returning value-added tax according to the actual amount of value-added tax paid after the collection of value-added tax. According to the actual payment of value-added tax amount of 35% of the method of return, the return of tax specifically for the research and development of casting and forging products. The casting and forging enterprises' self-export or commissioned and sold to the export enterprises and the city and county foreign trade enterprises to export the goods are not applicable to this preference.
Twenty-five, the aircraft maintenance services VAT effective tax burden exceeds 6% of the part of the implementation of the tax authorities that is refunded.
Twenty-six, for the university logistics economic entities established by divesting themselves from the former university logistics departments for independent accounting and legal personality, the revenues derived from grain, edible vegetable oil, vegetables, meat, poultry, eggs, condiments and canteen tableware provided for the canteens of teachers and students of the universities, as well as the revenues derived from the provision of fast food to other universities, will be exempted from VAT until the end of 2002.
XXVII. The value-added tax (VAT) is exempted on the clinical blood supplied to medical institutions by blood stations, which are public welfare organizations approved by the State Council or the provincial people's government's administrative departments of health and engaged in the collection and supply of clinical blood without profit-making purposes.
Twenty-eight, the food sector to return farmland to forests and grassland subsidized food, where in line with the national standards, compared with the "disaster relief food" exempt from value-added tax.
Twenty-nine non-profit medical institutions are exempted from value-added tax on preparations produced for their own use; and for-profit medical institutions, if their income is directly used to improve medical and health conditions, they are exempted from value-added tax on preparations produced for their own use for a period of three years from the date of their obtaining the registration to practise medicine.