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In order to do a good job in export tax refund (exemption) during the epidemic, the State Administration of Taxation issued a notice

Release Time: 2021-03-08

In order to do a good job in the export tax rebate (exemption) during the prevention and control of the novel coronavirus pneumonia epidemic, the State Administration of Taxation issued the "Noitce by the State Administration of Taxation of Doing a Good Job Respecting Export Tax Refund (Exemption) during the Period of Prevention and Control of the COVID-19 Outbreak" on February 20, 2020. The contents of the document are as follows:
Notice by the State Administration of Taxation of Doing a Good Job Respecting Export Tax Refund (Exemption) during the Period of Prevention and Control of the COVID-19 Outbreak
(Letter No. 28 [2020] of the State Administration of Taxation)
The offices of the State Administration of Taxation (“SAT”) in all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning; and all local special commissioner's offices of the SAT:
According to the relevant provisions of the Notice by the State Administration of Taxation of the Several Measures for Fully Maximizing the Functional Role of Taxation and Helping Win the Epidemic Prevention and Control Battle (No. 14 [2020], SAT) and the Announcement of the State Administration of Taxation on Matters concerning Tax Collection and Administration Supporting the Prevention and Control of Novel Coronavirus Epidemic (No. 4 [2020]), the relevant work of tax refund (exemption) during the period of prevention and control of the COVID-19 is hereby specified as follows:
I. Application for the “contactless” export tax refund (exemption) business
During the period of epidemic prevention and control, taxpayers may apply for recordation for export tax refund (exemption), issuance of certificates and declaration for tax refund (exemption) by “contactless” means. The paper materials to be submitted by taxpayers for handling the aforesaid taxation affairs may be submitted by the current methods in areas where visualized declaration of scanned paper materials is available; and in areas where declaration of scanned paper materials is not available, taxpayers are not required to submit them for the time being, and materials may be submitted in a supplementary manner after the end of the epidemic. For problems encountered by taxpayerx in declaration, the tax authorities at all levels shall flexibly use 12366 tax service hotline, WeChat, video and other “contactless” channels for counseling and answering.
II. Conducting “contactless” examination of export tax refund (exemption)   
During the period of the epidemic, after accepting a taxpayer's declaration, a tax authority shall only examine the electronic data. After the electronic data are examined to be correct and there is no suspected tax fraud or any other doubt, the relevant tax refund (exemption) may be handled. Where it is found there is any suspected fraud in the electronic data and other doubts, the taxpayer may be required to provide relevant image data by WeChat, email and other “contactless” channels, and the matter may be handled after the doubts are eliminated. Where a taxpayer is unable to provide image data through “contactless” channels, or a tax authority cannot rule out doubts through the image data, the relevant tax refund (exemption) shall not be handled for the time being, and after the end of the epidemic, the matters shall be verified and handled according to the provisions currently in force.
III. Carrying out “contactless” investigation and assessment 
1. Where, for the export tax refund (exemption) declared by a taxpayer, investigation and assessment need to be carried out according to the provisions currently in force by “contactless” methods, such as desk analysis, telephone interviews, and correspondence, and face-to-face interviews, on-site inspections and other “contacting” methods shall be prevented. Where suspected fraudulent obtaining of export tax refund and other major doubts are found in the investigation and assessment and doubts may be ruled out through “contactless” investigation and assessment, tax refund (exemption) shall be handled according to the regulations; and where the doubts are unable to be ruled out through “contactless” investigation and assessment, tax refund (exemption) shall not be handled for the time being.
2. Where the export tax refund (exemption) declared by a taxpayer shall only be handled after on-site inspection according to the provisions currently in force, during the period of epidemic prevention and control, it shall be handled separately under the following circumstances under the principle of “tolerating the incompleteness:”
(1) Where, for the tax refund (exemption) business declared by a taxpayer for the first time, the accumulative taxes to be refunded (exempted) do not exceed the limit, the tax refund (exemption) may be examined and handled in advance upon confirmation by the person in charge of the tax authority at the corresponding level; and where the accumulative taxes to be refunded (exempted) exceed the limit, tax refund (exemption) shall not be handled for the part exceeding the limit for the time being.
For the on-site inspection doubts indicated in the system, a tax authority shall, when examining and handling tax refund (exemption) and handling the relevant doubts in the On-site Inspection Report on Export Tax Refund (Exemption), select “passing inspection” in the inspection conclusions and indicate “epidemic” in the inspection conclusions. On-site inspection of a production enterprise entrusting tax refund shall be handled by analogy.
The specific scope of export tax refund (exemption) declared for the first time includes: tax refund (exemption) declared by foreign trade enterprises for the first time; tax refund (exemption) declared by production enterprises for the first time; tax refund (exemption) declared by foreign trade comprehensive service enterprises for the first time; production enterprises entrusting tax refund, but failing to conduct on-site inspection of the declaration for the first time; and tax refund (exemption) declared for the first time after a taxpayer changes the method of tax refund (exemption).
The limit for the accumulative taxes to be refunded (exempted) as declared: 1 million yuan for foreign trade enterprises (including foreign trade comprehensive service enterprises declaring self-support export business); 2 million yuan for manufacturing enterprises; and 1 million yuan for manufacturing enterprises entrusting tax refund. A taxpayer changing the methods of tax refund (exemption) shall be determined according to the aforesaid standards on the basis of the type of the changed enterprise. Under special circumstances, the tax authorities at the provincial level may raise the limit depending on the actual circumstances and report to the State Administration of Taxation (Department of Goods and Labor Tax) for recordation.
(2) For other export tax refund (exemption) matters that can only be handled after passing on-site inspections according to the provisions currently in force, except export enterprises determined as Class IV in the categorized administration and under the circumstances that the suspected tax fraud doubts are unable to be ruled out upon examination, with the consent of the tax authorities at the provincial level, the matters may be handled, mutatis mutandis to, the provisions of item (1).
(3) For tax refund (exemption) declared by export enterprises determined as Class IV in the categorized administration and examined to be unable to rule out the suspected tax fraud, upon confirmation by the person in charge of the tax authorities at the corresponding levels, on-site inspection is not required to be conducted for the time being and corresponding tax refund (exemption) shall not be handled for the time being.
IV. Reply to be given during the period of epidemic   
During the period of the epidemic, the investigation letters for which inspection has been completed before the epidemic shall be replied according to the provisions. For an investigation letter for which the inspection has not been completed before the epidemic, upon confirmation of the person in charge of the tax authority at the corresponding level, the on-site inspection for reply may be suspended. Where reply is unavailable as scheduled due to the impact of the epidemic situation, the Instructions for Delayed Reply shall be delivered to the taxpayer within the prescribed time limit.
From February 3, 2020 to the end of the epidemic, overdue tax refund (exemption) handled by or overdue replies of the tax authorities across the country due to the impact of the epidemic shall not be deemed overdue.
V. Feedback on “contactless” results   
During the period of the epidemic, the tax authorities shall notify taxpayers of the results of the tax-related matters concerning export refund (exemption) by online feedback. Where a taxpayer does need a paper certificate, the tax authority may serve it on the taxpayer by mail.
VI. Post-event examination after the end of the epidemic   
The tax authorities shall notify taxpayers of submitting paper declaration forms and materials to be submitted in a supplementary manner according to the provisions currently in force, before the end of the second value-added tax declaration period after the end of the epidemic.
The competent taxation authorities shall, according to the provisions currently in force, examine the paper declaration forms and materials submitted by taxpayers in a supplementary manner. Where a taxpayer is found to fail to submit the materials in a supplementary manner or submit materials that do not meet the provisions, the taxpayer shall be notified of making supplements and corrections within the prescribed time limit; and where a taxpayer fails to make supplements and corrections within the prescribed time limit or the supplements and corrections still fail to meet the provisions, it shall be handled according to the following requirements:
(1) Where recordation has been completed or changed, recordation or change in recordation shall be revoked; and where tax refund (exemption) has been handled, the taxes refunded (exempted) shall be recovered. Where recordation has not been completed or changed, it shall be handled according to the provisions currently in force.
(2) Where a certificate has been issued, the certificate shall be invalidated according to the provisions; and where the tax refund (exemption) has been handled, the taxes refunded (exempted) shall be recovered. Where no relevant certificate has been issued, it shall be handled according to the provisions currently in force.
(3) Where the tax refund (exemption) has been handled, the taxes refunded (exempted) shall be recovered. Where tax refund (exemption) is not handled and a taxpayer is suspected of fraudulently obtaining export tax refund (exemption), it shall be handled according to the provisions currently in force.
VII. Undergoing the inspection and assessment formalities in a supplementary manner after the end of the epidemic   
For the export tax refund (exemption) declaration business that cannot be verified on the spot due to the impact of the epidemic, after the end of the epidemic, the tax authorities shall conduct on-site inspections or hold face-to-face interviews, and conduct other investigation and assessment work, and handle the matters on the basis of the inspection and assessment according to the provisions currently in force. Where the tax refund (exemption) business to be handled by a taxpayer after passing the on-site inspection has been handled according to Article 3 of this Notice, but tax refund (exemption) should be disapproved as prescribed after on-site inspection, the taxes refunded (exempted) shall be recovered.
For investigation letters for which inspections have not been completed due to the impact of the epidemic, after the end of the period of the epidemic, the tax authorities shall spare no effort of conducting on-site inspection in an orderly manner and reply thereto on the basis of the inspection results in a timely manner.
 
State Administration of Taxation
February 20, 2020
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