Notice of the State Council on Issues concerning the Improvement of the Export Tax Refund Bearing Mechanism

· Document Number：No. 10 [2015] of the State Council

· Area of Law： Taxation

· Level of Authority： Regulatory Documents of the State Council

· Date issued：02-16-2015

· Effective Date：01-01-2015

· Status： Effective

· Issuing Authority： State Council

Notice of the State Council on Issues concerning the Improvement of the Export Tax Refund Bearing Mechanism
(No. 10 [2015] of the State Council)
The people's governments of all provinces, autonomous regions, and municipalities directly under the Central Government; all ministries and commissions of the State Council; and all institutions directly under the State Council:
To deepen the reform of fiscal and taxation systems, rationalizethe allocation of revenues between the central treasury and local treasuries, and promote the stable development of foreign trade, the State Council has decided to further improve the export tax refund bearing mechanism between the central treasury and local treasuries, and adjust the consumption tax return policies, which shall come into force on January 1, 2015. You are hereby notified of the relevant issues as follows:
I. Export tax refund (including refunded value-added tax (“VAT”) on export goods and export tax refund of VAT levied in lieu of business tax) shall be entirely borne by the central treasury, and the base amount of export tax refund originally borne by a local treasury in 2014 shall be turned over to the central treasury in a fixed amount.
II. Incremental return ofconsumption tax from the Central Treasury to local treasuries will no longer be implemented. Instead, return ofconsumption tax in a fixed amount will be implemented, with the amount of consumption tax returned in 2014 as the base amount.
III. The specific base amountof export tax refund to be turned over to the central treasury and the specific base amount of consumption tax to be returned shall be ratified by the Ministry of Finance.
State Council
February 16, 2015