Laws of the People's Republic of China

Notice of the State Administration of Taxation and the State Administration of Foreign Exchange on Enlarging the Scope of Export Enterprises under the Piloting Exemption from Submitting any Paper Verification and Writing-off Form on Export Proceeds of Foreign Exchange in Claiming Tax Refund for Export

Guo Shui Fa [2006] No. 91

The state taxation administrations of all provinces, autonomous regions, municipalities directly under the Central Government and the cities under separate state planning, the branches and management departments of foreign exchange of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, and the municipal branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen and Ningbo:

According to the Notice of the State Administration of Taxation and the State Administration of Foreign Exchange on Piloting Exemption from Submitting any Paper Verification and Writing-off Form on Export Proceeds of Foreign Exchange in Claiming Tax Refund for Export (No. 1051 [2005] of the State Administration of Taxation), the piloting work on export enterprises being exempted from submitting any paper verification and writing-off form on export proceeds of foreign exchange in claiming tax refund for export has been carried out in Beijing, Guangdong and Liaoning, and certain achievements have been made. At present, the state taxation administrations and the branches and management departments of foreign exchange of the State Administration of Foreign Exchange (hereinafter referred to as the foreign exchange bureaus) in these three places have submitted a written request for further enlarging the scope of the piloting export enterprises. With a view to promoting the work of " system of Online Reporting to be examined of the Verification and Writing-off of Export Proceeds of Foreign Exchange", facilitating the trade and optimizing the services of tax refund for export, the State Administration of Taxation and the State Administration of Foreign Exchange decide, upon deliberation, to promote the piloting work by enlarging the scope of export enterprises exempted from submitting any paper verification and writing-off form on export proceeds of foreign exchange in their claims on tax refund for export, and thus notice the relevant matters as follows:

1.

As of June 1, 2006 (the export date as indicated on the declaration form of exported goods of export enterprises (exclusively used for tax refund for export) shall prevail), the scope of the export enterprises exempted from submitting any paper verification and writing-off form on export proceeds of foreign exchange in their claims for tax refund for export shall be further enlarged in Beijing, Guandong and Liaoning, namely:

(1)

all the export enterprises of Bejing Municipality;

(2)

all the export enterprises of Guangzhou, Zhongshan and Meizhou City in Guandong Province; and

(3)

all the export enterprises of Shenyang in Liaoning Province.

2.

Guangdong Province and Liaoning Province may, in light of the progress of the piloting work, further enlarge the scope of the piloting export enterprises by the end of 2006, namely, all the export enterprises of Zhuhai, Foshan, Jiangmen, Dongwan, Huizhou and Zhaoqing City of Guangdong Province, and all the export enterprises of Liaoning Province. The state taxation bureaus and foreign exchange bureaus of Guangdong Province and Liaoning Province shall, before the implementation of the said policies, report the relevant situation to the State Administration of Taxation and the State Administration of Foreign Exchange for archival filing.

3.

The piloting plans of Guangdong Province and Liaoning Province shall be modified, and unless it is under any special circumstance, the relevant foreign exchange bureau may semi-annually submit to the state taxation bureau at the provincial level a paper Electronic Data Checklist of Export Proceeds of Foreign Exchange that Have been Verified and Written off for archival filing.

The piloting export enterprises of Liaoning Province are not required to submit to the administrative tax authority any paper Electronic Data Checklist of Export Proceeds of Foreign Exchange that Have been Verified and Written off when claiming for tax refund (exemption) of exported goods. In the case of no electronic data on the verification and writing-off of export proceeds of foreign exchange, it shall be coped with in accordance with the provisions of Article 5 of the attachment to the Letter of the State Administration of Taxation No. 1051 [2005].

4.

The state taxation bureaus and the state foreign exchange bureaus in the piloting regions shall, in accordance with the relevant provisions of Document No. 1051 [2005] of the State Administration of Taxation, do a good job in enlarging the pilot work. Both parties shall further enhance the cooperation and collaboration, and guarantee the safety of the electronic data on the verification and writing-off of export proceeds of foreign exchange. The state taxation bureaus at all levels shall strengthen the internal transfer, utilization and management of the electronic data. The state taxation bureaus at the provincial level of the piloting regions shall formulate relevant measures for re-verifying, supervising and managing the electronic data on the verification and writing-off of export proceeds of foreign exchange.

5.

Other regions where the "System of Online Reporting to be examined of the Verification and Writing-off of Export Proceeds of Foreign Exchange" has been applied, shall actively study the specific measures for the export enterprises within their regions being exempted from submitting any paper verification and writing-off form on export proceeds of foreign exchange in the claim for tax refund for export. Those regions with mature conditions may apply for the piloting work with the State Administration of Taxation and the State Administration of Foreign Exchange. Without the approval of the State Administration of Taxation and the State Administration of Foreign Exchange, no region may unlawfully alter the present measures for administrating the verification and writing-off form on export proceeds of foreign exchange for tax refund for export.

State Administration of Taxation

State Administration of Foreign Exchange

June 19, 2006