Anhui Hefei Released VAT Exemption Policy to Encourage Enterprise Export

Recently, Anhui Hefei released and officially implemented the 30 Opinions on Promoting the Development of the Municipal Industries to encourage enterprise export, technical reform and emission reduction. Among them, enterprise export may be exempt from the VAT and consumption tax, with the income tax of small low-profit enterprises levied at the tax rate of 20%.

The Opinions prescribes that in case an enterprise exports or entrusts others to export self-produced goods, it may be exempt from the VAT, consumption tax and be simultaneously allowed to offset or refund the VAT for the raw materials; and the self-produced goods delivered to export processing zones and bonded logistics parks are taken as exported goods and enjoy export rebates.

The Opinions also prescribes that prior to late 2010, the enterprise income tax may be levied at the tax rate of 20% for the income of small low-profit enterprises with the annual taxable amount of less than RMB30,000 calculated 50% of taxable amount. In addition, old equipment used by an enterprise as fixed assets or bought-in components for overseas investment may also enjoy export rebates.