Circular on Matters Concerning Adjusting and Refining the Mechanism for Sharing Refundable Uncredited Value-added Tax by Local Governments and Budget Management
Circular on Matters Concerning Adjusting and Refining the Mechanism for Sharing Refundable Uncredited Value-added Tax by Local Governments and Budget Management
Circular on Matters Concerning Adjusting and Refining the Mechanism for Sharing Refundable Uncredited Value-added Tax by Local Governments and Budget Management
Cai Yu [2019] No. 205
December 4, 2019
Finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan, the Finance Bureau of Xinjiang Production and Construction Corps, all local regulatory bureaus of the Ministry of Finance, tax bureaus under the State Taxation Administration of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan, Shanghai headquarters, all branches, business management divisions of the People's Bank of China, as well as central sub-branches thereof in provincial capital cities and sub-provincial cities,
In accordance with relevant provisions of the Circular of the State Council on Issuing the Plan for Promoting the Reform of Adjusting the Distribution of Tax Revenues between the Central Government and Local Governments after the Implementation of Larger-scale Tax and Fee Cuts (Guo Fa [2019] No. 21), matters concerning adjusting and refining the mechanism for sharing refundable uncredited value-added tax by local governments and budget management are hereby notified as follows:
I. Sharing Mechanism for Local Governments
As of September 1, 2019, out of the 50% refundable uncredited value-added tax ("VAT") to be shared by a local government, 15% shall be shared by the local government of the place where a relevant enterprise is located, and the remaining 35% shall be subject to the sharing by the local government as per the proportion of the local government's VAT sharing amount in its total sharing amount, which shall be determined by the Ministry of Finance through calculation based on the VAT revenues actually shared by each local government in the previous year. In specific operations, the portion of 15% shall be refunded directly by government of the province where the relevant enterprise is located, the portion of 35% shall be paid in advance out of the provincial-level finance of the place where the enterprise is located first; if the payment in advance is less than that required to be shared, the difference shall be transferred by the mode of transfer of treasury funds from the provincial-level finance of the place where the enterprise is located to the central finance on a monthly basis; and if the payment in advance is more than that required to be shared, the difference shall be transferred by the mode of transfer of treasury funds from the central finance to the provincial-level finance of the place where the enterprise is located on a monthly basis.
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Cai Yu [2019] No. 205
December 4, 2019
Finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan, the Finance Bureau of Xinjiang Production and Construction Corps, all local regulatory bureaus of the Ministry of Finance, tax bureaus under the State Taxation Administration of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the State plan, Shanghai headquarters, all branches, business management divisions of the People's Bank of China, as well as central sub-branches thereof in provincial capital cities and sub-provincial cities,
In accordance with relevant provisions of the Circular of the State Council on Issuing the Plan for Promoting the Reform of Adjusting the Distribution of Tax Revenues between the Central Government and Local Governments after the Implementation of Larger-scale Tax and Fee Cuts (Guo Fa [2019] No. 21), matters concerning adjusting and refining the mechanism for sharing refundable uncredited value-added tax by local governments and budget management are hereby notified as follows:
I. Sharing Mechanism for Local Governments
As of September 1, 2019, out of the 50% refundable uncredited value-added tax ("VAT") to be shared by a local government, 15% shall be shared by the local government of the place where a relevant enterprise is located, and the remaining 35% shall be subject to the sharing by the local government as per the proportion of the local government's VAT sharing amount in its total sharing amount, which shall be determined by the Ministry of Finance through calculation based on the VAT revenues actually shared by each local government in the previous year. In specific operations, the portion of 15% shall be refunded directly by government of the province where the relevant enterprise is located, the portion of 35% shall be paid in advance out of the provincial-level finance of the place where the enterprise is located first; if the payment in advance is less than that required to be shared, the difference shall be transferred by the mode of transfer of treasury funds from the provincial-level finance of the place where the enterprise is located to the central finance on a monthly basis; and if the payment in advance is more than that required to be shared, the difference shall be transferred by the mode of transfer of treasury funds from the central finance to the provincial-level finance of the place where the enterprise is located on a monthly basis.
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