New Regulation for tax refund system

Under the prerequisite of co-sharing export tax refund by central government and local government, The State Council confirmed to modify the existing system as followings:

1. The sharing proportion of export tax refund between central government and local government is adjusted. The basis amount of tax refund remains unchanged but central government will take over 92.5% of the amount over the basis amount and local government will take over the remaining 7.5%.

2. Details of the sharing method of tax refund: Each province (district, city) could establish their own sharing method (below provincial level) as according to their actual situation. However, local government is not allowed to shift the burden to town government and local enterprises nor impose any quota.

3. The repayment method of tax refund has been improved. All tax refund will be centralized and to be repaid by the central government.

中華人民共和國國務院
國發[2005]25號
2005年8月2日

國務院決定, 在堅持中央與地方共同負擔出口退稅的前提下對現有機制作如下完善:

一、 對中央與地方的出口退稅分擔比例作出調整。各地出口退稅基數保持不變，超基數部分中央分擔92.5%,地方分擔7.5%。

二、 進一步明確地方出口退稅分擔辦法。各省（區、市）根據自己的實際情況，制定省級以下出口退稅分擔辦法，但不得將出口退稅負擔分解到鄉鎮和企業；不得採取限制外購產品出口等干預外貿正常發展的措施。

三、 改進出口退稅退庫方式。出口退稅改為由中央統一退庫。