Laws of the People's Republic of China

Circular of the State Administration of Taxation concerning Strict Examination of Export Tax Refund and Acceleration of the Progress of Export Tax Refund

Guo Shui Han [2006] No.1128

The state taxation bureaus of each province, autonomous region, municipality directly under the central government and city specifically designated in the state plan:

In light of the statistics, the export taxes refunded for the whole country has reached 225.475 billion Yuan (not including tax exemption, same as below) by the end of October, which accounts for 81.3% of the export tax refund plan which has already been distributed by the State Administration of Taxation. Although the progress of export tax refund is basically normal from the overall perspective, it is still somewhat slow in certain localities,. In order to carry out the spirit of the State Council in reforming export tax refund mechanism and do well in export tax refund before the end of the year, all localities shall further accelerate the progress of export tax refund on the basis of examining export tax refund in a more strict way. The specific matters are hereby notified as follows:

1.

Each locality shall earnestly implement the spirit of the State Council in reforming the export tax refund mechanism, further improve the working efficiency of export tax refund, optimize services, and shall effectively accelerate the progress of export tax refund and put an end to the occurrence of tax refund offences under the precondition of strict examination and approval and preventing the occurrence of tax fraud cases. At present, the localities where the progress of export tax refund is relatively slow shall earnestly analyze the reasons and promptly take steps.

2.

Further cutting down the amount of the unsettled tax refund which has been examined and approved. In accordance with the Monthly Statement on the Progress of Export Tax Refund (Exemption) as reported by the tax refund departments of each locality, by the end of October, the amount of the unsettled tax refund which has been examined and approved nationwide (which refers to the amount of the taxes refunded each month which have been examined and approved by the tax refund departments but have not been refunded yet by the end of the month) increases in comparison with that of September, of which the amount is 5.584 billion Yuan by the end of September, while it has increased to 7.119 billion Yuan by the end of October. Therefore, all localities shall intensify the coordination and cooperation with the local treasury departments, adopt practical and effective measures to timely withdraw the taxes which shall be refunded as examined and approved from the treasury.

3.

The localities whose export tax refund plan is not sufficient by the end of the year shall timely contact the State Administration of Taxation (the Import-export Taxation Department) for applying for additional export tax plan.

The State Administration of Taxation

November 27, 2006