Tax Exemption Qualification Recognition Procedure

In order to support the development of China’s major technic al equipment manufacturing industry, the Ministry of Industry and Information Technology, the General Administration of Customs and the Energy Bureau of the General Administration of Taxation issued the Notice on Printing and Distributing the Administrative Measures of Tax Policies on Import of Major Technical Equipment (Financial Tax [2020] No.2), and the Ministry of Industry and Information Technology, the Ministry of Finance, the General Administration of Customs, the General Administration of Taxation and the Energy Bureau formulated the Implementation Rules of Tax Policies on Import of Major Technic al Equipment, which will be implemented on August 1.

Origin of Detailed Rules

Major technical equipment and products added and retained in the Catalogue of Major Technical Equipment and Products Supported by the State shall conform to the direction of Industry development and the fields specified in the catalogue. The key components and raw materials added and retained in the Catalogue of Imported Key Components and Raw Materials for Major Technical Equipment and Products shall be the key components and raw materials that are really necessary to be imported for the production of major technic al equipment and products supported by the state. The major technic al equipment and products added in the Catalogue of Major Technical Equipment and Products Not Exempted from Import shall be the major technic al equipment and products that have been produced in China.

Catalogue Revision

The Ministry of Industry and Information Technology, together with relevant departments, shall supervise, inspect and evaluate the implementation of policies by enterprises and owners of nucIear power projects in a timely manner.

Enterprises enjoying the policy and owners of nuclear power projects may be held criminally liable for unauthorized transfer, diversion or other disposal of parts and raw materials imported duty-free; Enterprises enjoying the policy and owners of nuclear power projects, if they are included in the list of joint disciplinary actions for dishonesty, will be studied by the Ministry of Industry and Information Technology in conjunction with relevant departments whether enterprises can continue to enjoy the tax exempt on policy.

Stop Enjoying Tax Exemption Qualification

The newly applied enterprise can send an application for tax exemption qualification to the provincial industrial and information technology department and the central enterprise group in August each year; After being identified, inspected and reviewed by the government departments, the provincial industrial and information technology departments  and the central enterprise groups shall inform the relevant enterprises of the new enterprises enjoying the policy  and the list of nuclear power project owners. Enterprises on the list will enjoy the policy from January 1st next year.