A new version of the Guidelines on Stabilizing Foreign Trade and Foreign Investment Tax Policies was released


Published:

2024-01-19

In order to give full play to the function of tax support to stabilize foreign trade and foreign investment, the State Administration of Taxation has reviewed and updated the current effective relevant tax support policies and collection and management service measures, formed a new version of the "Stable Foreign Trade and Foreign Investment Tax Policy Guidelines" and released it on January 15, so as to facilitate taxpayers to better understand the policy and apply the policy, and create a good tax environment for the development of foreign trade and foreign investment.

In order to give full play to the function of tax support to stabilize foreign trade and foreign investment, the State Administration of Taxation has reviewed and updated the current effective relevant tax support policies and collection and management service measures, formed a new version of the "Stable Foreign Trade and Foreign Investment Tax Policy Guidelines" and released it on January 15, so as to facilitate taxpayers to better understand the policy and apply the policy, and create a good tax environment for the development of foreign trade and foreign investment.

The relevant person in charge of the Department of Policies and Regulations of the State Administration of Taxation introduced that the new version of the "Stable foreign trade and stable foreign investment tax policy Guidelines" is divided into two major areas of stable foreign trade policy and stable foreign investment policy, including 51 specific contents. Among them, the stable foreign trade related tax policies include export goods and services tax policy, cross-border taxable behavior value-added tax policy, foreign trade new business tax policy, export rebate (exemption) tax service facilitation measures 19. Stabilizing foreign investment related tax policies include 32 tax policies to encourage foreign investment.

"Foreign trade and foreign investment is a link between the domestic and international double cycle, and is an indispensable force for stability and promoting economic and social development." In recent years, in accordance with the arrangements of the Party Central Committee and The State Council, the tax authorities, together with relevant departments, have issued a series of policies to stabilize foreign trade and foreign investment tax support and facilitation measures to promote the steady development of import and export, support the development of new forms and models of foreign trade, and encourage foreign investors to invest in China." Li Ping, deputy director of the Institute of Tax Science of the State Administration of Taxation, believes that these policy measures will be catalogued and updated in a timely manner, not only to facilitate taxpayers to systematically grasp and convenient to enjoy the policy, but also to release a positive signal of continued expansion of opening up to the outside world, vigorously consolidate the basic disk of foreign trade and foreign investment, and further boost confidence in market development.

At present, the new version of the "Stable Foreign trade and stable Foreign Investment Tax Policy Guidelines" has been published on the official website of the State Administration of Taxation, taxpayers can log in to inquire, control operation, apply tax support policies suitable for their own development, and fully enjoy the policy dividend.

"Stable Foreign trade stable Foreign Investment tax policy Guidelines Compilation" directory

First, we will stabilize the foreign trade tax policy

(1) Tax policies on goods and services

1. Export goods labor refund (exemption) tax policy

2. Tax exemption policy for export goods and services

3. Export goods and services tax policy provisions are not applicable to VAT refund (exemption) and exemption policies

4. Pilot policy of general VAT taxpayer qualification in the comprehensive bonded area

5. Export tax rebate policy for financial leasing goods

6. Tax refund policy at the port of departure

7. Small border trade tax policy

(2) Value-added Tax policy on cross-border taxable activities

8. Zero VAT rate policy applies to cross-border taxable activities

9. VAT exemption policy applies to cross-border taxable activities

(3) Tax policy for new forms of foreign trade

10. Cross-border e-commerce retail exports apply VAT and consumption tax refund (exemption) tax policy

11. Cross-border e-commerce retail exports are exempt from value-added tax and consumption tax

12. Cross-border e-commerce comprehensive pilot zone retail export ticket-free policy

13. Approved tax collection policy for retail export enterprises in cross-border e-commerce comprehensive pilot zone

14. Market purchase trade mode export goods are exempt from VAT policy

15. Foreign trade comprehensive service enterprises agent tax refund policy

16. Tax policy on goods returned from cross-border e-commerce exports

(4) Measures to facilitate export tax rebate (exemption) services

17. Simplify and optimize export tax refund (exemption) submission materials and procedures

18. Continue to accelerate the progress of export tax refund (exemption)

19. Continue to improve the level of export tax rebate (exemption) services

Second, we will stabilize the tax policy on foreign investment

(1) Tax policies to encourage foreign investment

20. Withholding income tax is not levied on foreign investors' direct investment with distributed profits

21. Eligible non-resident taxpayers shall enjoy contractual treatment

22. Chinese-foreign cooperation in running schools is exempt from value-added tax

23. Taiwan shipping companies engaged in direct maritime services across the Taiwan Straits are exempt from VAT

24. Taiwan shipping companies engaged in direct maritime services across the Taiwan Straits are exempt from enterprise income tax

25. Taiwan Airlines engaged in direct air services across the Taiwan Straits are exempt from value-added tax

26. Taiwan airlines engaged in direct air services across the Taiwan Straits are exempt from enterprise income tax

(2) Tax policies to attract overseas people

27. Preferential individual income tax policy for foreign individual subsidies

28. Preferential personal income tax for overseas talents in high demand in the Guangdong-Hong Kong-Macao Greater Bay Area

29. Hengqin Guangdong-Macao Deep Cooperation Zone personal income tax incentives for high-end talents in short supply at home and abroad

30. Individual income tax concessions for Macao residents working in Hengqin Guangdong-Macao In-depth Cooperation Zone

31. Individual income tax concessions for residents of Hong Kong and Macao in Nansha, Guangzhou

32. Individual income tax concessions for Taiwan residents in Fujian Pingtan Comprehensive Experimental Zone

(3) Supporting the opening of financial markets to the outside world tax policy

33. QFII and RQFII entrusting domestic companies to engage in securities trading business in China are exempt from VAT

34. QFII and RQFII gains from the transfer of equity investment assets such as stocks in China are temporarily exempted from corporate income tax

35. QFII and RQFII are exempt from VAT on the transfer difference income of CDR of innovative enterprises

36. QFII and RQFII obtain the enterprise income tax exemption provisions for the transfer difference income of CDR of innovative enterprises and the dividend income

37. Income from the transfer of financial commodities obtained by foreign institutions investing in the inter-bank local currency market is exempt from VAT

38. Foreign institutions are temporarily exempt from VAT on interest income from investment in domestic bonds

39. Corporate income tax will be temporarily exempted from the interest income of foreign institutions investing in domestic bonds

40. The transfer price difference obtained by Hong Kong market investors investing in A-shares listed on the Shanghai Stock Exchange is exempt from VAT

41. Investors in the Hong Kong market are temporarily exempted from income tax on the transfer difference earned by investing in A-shares listed on the Shanghai Stock Exchange

42. Dividend income tax policy for Hong Kong market investors who invest in A-shares listed on the Shanghai Stock Exchange

43. The transfer price difference obtained by Hong Kong investors investing in A shares listed on the Shenzhen Stock Exchange is exempt from VAT

44. Investors in the Hong Kong market are temporarily exempted from income tax on the transfer difference earned by investing in A-shares listed on the Shenzhen Stock Exchange

45. Dividend income tax policy for Hong Kong market investors who invest in A shares listed on the Shenzhen Stock Exchange

46. The securities (stock) transaction stamp duty is temporarily exempted from the stock borrowing and rescheduling involved in the short selling of stock guarantee by investors in the Hong Kong market

47. The transfer difference obtained by investors in the Hong Kong market from trading Mainland fund shares is exempt from VAT

48. Investors in the Hong Kong market are temporarily exempt from income tax on the transfer difference earned from the trading of Mainland fund shares

49. Income tax policy for Hong Kong market investors on gains from distribution of Mainland funds

50. Foreign institutional investors engaged in crude oil futures trading in China will not be subject to corporate income tax temporarily

51. Individual income tax will be temporarily exempted for overseas individual investors who invest in crude oil and other commodity futures in China.

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