Foreign investors in foreign-invested enterprises have invested capital must reach 25% (inclusive) or more of the capital already in place by the investing parties of the enterprise. Article 4 The scope of equipment entitled to tax rebate: refers to the equipment purchased domestically in line with the "State Council on the adjustment of tax policy on imported equipment notice" (Guo Shui Fa [1997] No. 37) in the provisions of the "Industrial Guidance Catalog for Foreign Investment" (Encouragement and Restriction of Category B), as well as the "current national key to encourage the development of the industry, products and technology directory" of the investment project.
For projects in line with the above provisions, some plastic parts, rubber parts, ceramic parts and pipes for petrochemical projects purchased with the equipment listed in the purchase contract are also eligible for tax rebates.
The equipment listed in the State Council's "Catalogue of Imported Commodities Not Exempted from Duty for Foreign Investment Projects" and "Catalogue of Imported Commodities Not Exempted from Duty for Domestic Investment Projects" purchased domestically is not entitled to the tax rebate tax incentives. Article 5 The equipment enjoying tax rebate must have the following two conditions at the same time:
(1) it must be the unused domestic equipment purchased in money, excluding the investor's investment in kind and investment in intangible assets;
(2) it must be the domestic equipment within the total amount of the investment approved by the tax authorities for tax rebate and purchased after September 1, 1999;
Domestic equipment refers to the Chinese People's Republic of China*********************************************************************************************. equipment refers to the equipment produced by enterprises within the territory of the People's Republic of China*** and the State.
The total amount of investment approved for tax rebate shall be calculated according to the following formula:
Total amount of investment approved for tax rebate = total monetary investment of the investing parties - total value of the purchased tax-free imported equipment Chapter III - Registration and Management Article 6 Any foreign-invested enterprise which is eligible for the scope of tax rebate shall hold the "Registration of Foreign-Invested Enterprises for Purchasing of Domestically-Manufactured Equipment" prior to the fulfillment of the purchase of domestically-made equipment for the first time for each domestic equipment purchasing contract. Registration Manual for the Purchase of Domestic Equipment by Foreign-Invested Enterprises" (the format is attached, hereinafter referred to as the "Registration Procedures", printed by the State Tax Bureau of each province, autonomous region, municipality directly under the central government and municipality with a separate plan), together with the following information, and apply for the registration and filing procedures for the purchase of domestically produced equipment with the competent tax rebate tax authorities:
(i) A copy of the business license of the enterprise legal person;
(ii) a copy of the tax registration certificate of the enterprise;
(iii) a copy of the registration certificate of export tax rebate;
(iv) a copy of the feasibility study report of the enterprise and a copy of the contractual statute agreement;
(v) a copy of the approval letter of the project of the Ministry of Foreign Trade and Economic Cooperation;
(vi) a list of imported equipments;
(vii) a copy of the investor's original certificate of physical investment;
(viii) a copy of the contract for supply of domestically produced equipment;
(ix) capital verification report. Article 7 After receiving the application from the enterprise, the tax authorities in charge of tax rebate shall, according to the application of the enterprise, faithfully fill in the registration manual and hand it over to the foreign-invested enterprise after stamping the official seal. Article 8 The tax authorities in charge of export tax rebate shall set up accounts, register the total investment of the foreign-invested enterprise, the name, quantity and amount of domestic equipment to be purchased, and enter the relevant information into the computer. Article 9 If a foreign-invested enterprise fails to execute the purchase and sales contract for any reason, it shall go to the tax authority in charge of tax rebate with the original registration manual to go through the cancellation procedure. The tax authorities shall cancel the corresponding account records. Chapter IV Management of Purchase and Sale Article 10 When a foreign-invested enterprise purchases domestically produced equipment, the supplying enterprise shall be allowed to issue VAT invoice according to the copy of page 1 of the registration manual and the supply contract provided by the purchasing enterprise. Article 11 The competent taxing authority of the supplying enterprise shall issue the tax (special for export goods) payment book according to the regulations after reviewing and approving the copy of the first page of the registration manual, the copy of the supply contract and the relevant information provided by the supplying enterprise. The issuance of tax (special for export goods) payment book, in accordance with the current relevant provisions. Article XII of the purchasing enterprise and the supplier enterprises to settle payments for domestically produced equipment, foreign exchange or RMB settlement, settlement in foreign exchange, in accordance with the relevant provisions of the foreign exchange management department. Chapter V Tax Refund and Supervision Article 13 After purchasing the domestically produced equipment, the foreign-invested enterprises shall fill in the "Declaration Form for Tax Refund (Exemption) for Exported Goods" according to the domestically produced equipment purchased under each contract, and at the same time, attach the following information to apply to the tax authorities in charge of tax refund to apply for the tax refund of the domestically produced equipment:
(1) VAT invoice;
(2) tax (special for exported goods) payment letter
(iii) payment vouchers;
(iv) registration manuals;
(v) copies of supply contracts for domestically produced equipment. Article 14 The competent tax refund tax authorities shall keep the registration manual for inspection after processing the tax refund of domestically produced equipment. Article 15 The refundable tax amount of the purchased domestic equipment shall be calculated according to the following formula:
Refundable tax amount = the amount stated in the VAT invoice×applicable VAT rate Article 16 The domestic equipments purchased by the foreign-invested enterprises shall be supervised by the competent tax rebate tax authorities for a period of five years. If the transfer of ownership of the equipment, such as transfer, gift, etc., or the leasing or reinvestment of the equipment occurs during the supervision period, the competent tax refund (tax authorities) shall make up the tax refunded into the central treasury according to the following formula:
The tax to be made up = Amount stated on the special invoice for VAT × (depreciated value of the equipment ÷ original value of the equipment) × the applicable value-added tax rate.
Depreciated value of equipment = original value of equipment - accumulated depreciation
The original value of equipment and depreciation are calculated according to the accounting data of enterprises.