Notice of the Ministry of Finance and State Administration of Taxation on the Issuance of "Rules on Several Issues Related to the Scope Expansion of VAT Pledging and Deduction in the Northeast RegioN"

Notice of the Ministry of Finance and State Administration of Taxation on the Issuance of "Rules on Several Issues Related to the Scope Expansion of VAT Pledging and Deduction in the Northeast RegioN"

Cai Shui [2004] No. 156

September 14, 2004

Departments (bureau) of finance and State Administration of Taxation of Liaoning province, Jilin province and Heilongjiang province and Dalian city:

In accordance with the spirit of Several Opinions on Carrying out the Strategy of Revitalizing Traditional Industrial Bases in Northeast Region issued by the Central Committee of the Communist Party of China and the State Council (Zhong Fa [2003] No. 11), and with the approval by the State Council, the Ministry of Finance and the State Administration of Taxation formulate the Provision on Several Issues concerning Extending Value-added Tax (hereafter referred to as VAT) Credit Scope in Northeast Region (hereafter referred to as the Provision), we hereby print and distribute it to you, please abide by it.

In case that normal VAT-payers, engaged in manufacturing of military and hi-tech products, which are beyond the scope listed in the Provision on the industries of equipment-manufacturing, petrochemistry, metallurgy, ship-building, automobile-manufacturing, agro-product processing, intends to claim the tax credit prescribed in the Provision, concrete conditions applicable to military and hi-tech products shall be forwarded by the Provincial finance and taxation authorities, then they shall be submitted to the Ministry of Finance and the State Administration of Taxation to be examined and to be formulated separately.

Selecting several industries in Northeast region to extend VAT credit scope as a trial is an important measure of the Central Government to revitalize Northeast traditional industrial bases, it also can accumulate experience for the future VAT reform to be conducted nationwide. Departments in the concerned region shall enhance the management and coordinate the implementation seriously; the Ministry of Finance and the State Administration of Taxation shall be informed of the possible problems emerging from the implementation process.

Annex: the Provision on Several Issues concerning Extending Value-added Tax Credit Scope in Northeast Region

I. This Provision is formulated in accordance with the Several Opinions on Carrying out the Strategy of Revitalizing Traditional Industrial Bases in Northeast and other Regions (Zhong Fa [2003] No.11) issued by the Central Committee of the Communist Party of China and the State Council.

II.
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