“Export tax rebate is an important part of the new round of tax reform. The specific operational details and adjustment ratio have been in the feasibility study. After the plan is completed, it will be reported to the State Council.†On June 15, an official of the Department of Planning and Finance of the Ministry of Commerce Disclosed on the phone.
The reporter learned from unofficial sources that the core content of the export tax rebate policy adjustment is to reduce the average tax rate by 2%, mainly involving light industry, textile, metallurgy, steel, machinery and other resource-based export industries, and some projects export tax rebates and even Will be cancelled. Although the proportion of “2%†seems to be insignificant, a large part of the profits of foreign trade enterprises will be swallowed up. Some domestic companies have begun to consider adjusting their strategies to change their exports into overseas investments.
The tax reform plan is coming out. According to the data released by the State Administration of Taxation, during the 10th Five-Year Plan period, China’s total export tax rebate was 1,194.447 billion yuan, a 2.8-fold increase over the total tax rebate during the “Ninth Five-Year Plan†period. In 2005, China’s export tax rebate was more than 300 billion yuan, accounting for 1.8% of GDP.
“Export tax rebate is the most unreasonable tax policy at present. The average tax rebate rate for China’s export commodities is as high as 13%. Export enterprises are mainly labor-intensive and low value-added, and low-cost dumping of exports has occurred from time to time.†Beijing Industry and Commerce Professor Ji Zhu, director of the University World Economic Research Center, said.
According to the reporter's understanding, the Ministry of Commerce is currently focusing its attention on industries with low volume and low prices, such as textiles and some low value-added mechanical and electrical products. Regarding the issue of proportion, government departments such as the National Development and Reform Commission and the Ministry of Finance are indeed studying. Relevant persons from the Import and Export Tax Administration Department of the State Administration of Taxation told reporters that the relevant departments will hold a consultation meeting to hear the voice of the industry organization.
Cao Xinyu, vice president of the China Chamber of Commerce for Import and Export of Textiles, said: "The previous government departments and chambers of commerce discussed the issue of export tax rebate adjustment at the daily work meeting. However, no official documents have been received from the higher authorities."
Zhang Qingzeng, chairman of Guangdong Silk International Group Clothing Co., Ltd., has clearly felt that the tax authorities have strengthened the management of tax rebates in the near stage. "This should be a precursor to the reduction in tax rates." Zhang Qingzeng said that he also received news from unofficial sources that the textile industry tax rebate ratio will be reduced from 13% to 11%.
The adjustment ratio of export tax rebates for individual industries will be relatively large. Relevant persons from the Beijing Municipal Bureau of Commerce have judged that industries such as steel are likely to be adjusted from the current 11% to 6%.
It is reported that in order to implement the spirit of the Prime Minister’s Office to limit the export of “high investment, high energy consumption, high pollution and low value-added products and resource productsâ€, the State Administration of Taxation’s documents mentioned the “two high and one capital†export tax rebate adjustment. It is likely to be greatly reduced or cancelled in full, and there may even be a possibility of adding environmental taxes and resource taxes.
“2%â€, the pain of foreign trade enterprises “The foreign trade business is difficult to do.†The person in charge of the casting department of Hunan Arts and Crafts Import and Export Corporation said that this was the “first reaction†when he heard the statement that the export tax rebate would be lowered. The company exported more than 20 million US dollars last year. It is an old-fashioned foreign trade company in Hunan Province, specializing in ceramics, shoes and paper products.
Many textile export enterprises are even puzzled by adjusting export tax rebates. Zhou Xiaonan, deputy general manager of Ningbo Dunhuang Import and Export Co., Ltd., calculated the account for the reporter. Now the gross profit of the textile industry is about 3% to 4%. Excluding various expenses, the net profit is less than 1%. Therefore, the export tax rebate is reduced. 2% will cause “zero profit†for many companies.
Zhou Xiaonan said that the previous export tax rebate was reduced from 15% to 13%. Most overseas buyers are not willing to bear the increased costs. Some domestic textile companies are dealing with the practice of cutting costs by cutting corners, so customers find product quality. Immediately after the decline, the price is lowered.
"Most foreign companies have also adopted a strategy of not moving." Chen Shuangrong, a partner of Ernst & Young Hua Ming Certified Public Accountants, said, "At present, more than 50% of China's exports are exported by foreign-invested enterprises, and a large part of them are sold to the parent company. It will be resold to other countries and regions. If the tax rebate is reduced or cancelled, the increased cost will have a great impact on the competitiveness of the goods produced in China. In particular, the products of foreign-invested enterprises may not be sold to the final consumption point. It’s a bit unfair to bear the extra tax costs."
Should we give the company an adaptation period? The Ministry of Finance said that it is not clear at the moment. Long Guoqiang, deputy director of the Foreign Economic Research Department of the Development Research Center of the State Council, believes that according to international practice, enterprises should be given an appropriate preparation period, and this adaptation period should be more suitable from three months to six months.
"Past policies are often announced in the current or after the event, and corporate decision-making needs to bear a lot of risks. To ensure the profit of the enterprise, the adjustment of the export tax rebate rate must allow the enterprise to have sufficient preparation." Long Guoqiang said.
Change exports to overseas investment?
Faced with the adjustment of the export tax rebate policy, some flexible companies have begun to plan ahead.
Gui Mingjun, the boss of Ningbo Tonghui Trading Co., revealed: "Now many enterprises in Jiangsu and Zhejiang are more willing to register with the EU and enjoy the same market treatment as EU enterprises. The export tax rebate rate will be greatly reduced, which will make this trend more obvious. ."
"The EU has no restrictions on Chinese investment," EU Trade Commissioner Peter Mandelson said during a recent visit to China. It is reported that the EU single market has no internal border restrictions, companies can freely choose the best business base, and the EU countries are also trying their best to attract foreign investment.
Zhang Bin, who is busy preparing for the company in the Netherlands, is more aware of the local macro situation. He introduced that the Dutch tax environment has always been competitive in the EU countries, and certain characteristics of its tax system are very conducive to the international tax planning of multinational companies.
Zhang Bin's trading company has a wide range of business, including municipal facilities, energy development, and technology trade. "As long as the Western countries eliminate the obstacles artificially set in trade, the prospects for Chinese products in the European market are quite optimistic. It seems that instead of exporting, it is better to invest directly in foreign investment."
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
The reporter learned from unofficial sources that the core content of the export tax rebate policy adjustment is to reduce the average tax rate by 2%, mainly involving light industry, textile, metallurgy, steel, machinery and other resource-based export industries, and some projects export tax rebates and even Will be cancelled. Although the proportion of “2%†seems to be insignificant, a large part of the profits of foreign trade enterprises will be swallowed up. Some domestic companies have begun to consider adjusting their strategies to change their exports into overseas investments.
The tax reform plan is coming out. According to the data released by the State Administration of Taxation, during the 10th Five-Year Plan period, China’s total export tax rebate was 1,194.447 billion yuan, a 2.8-fold increase over the total tax rebate during the “Ninth Five-Year Plan†period. In 2005, China’s export tax rebate was more than 300 billion yuan, accounting for 1.8% of GDP.
“Export tax rebate is the most unreasonable tax policy at present. The average tax rebate rate for China’s export commodities is as high as 13%. Export enterprises are mainly labor-intensive and low value-added, and low-cost dumping of exports has occurred from time to time.†Beijing Industry and Commerce Professor Ji Zhu, director of the University World Economic Research Center, said.
According to the reporter's understanding, the Ministry of Commerce is currently focusing its attention on industries with low volume and low prices, such as textiles and some low value-added mechanical and electrical products. Regarding the issue of proportion, government departments such as the National Development and Reform Commission and the Ministry of Finance are indeed studying. Relevant persons from the Import and Export Tax Administration Department of the State Administration of Taxation told reporters that the relevant departments will hold a consultation meeting to hear the voice of the industry organization.
Cao Xinyu, vice president of the China Chamber of Commerce for Import and Export of Textiles, said: "The previous government departments and chambers of commerce discussed the issue of export tax rebate adjustment at the daily work meeting. However, no official documents have been received from the higher authorities."
Zhang Qingzeng, chairman of Guangdong Silk International Group Clothing Co., Ltd., has clearly felt that the tax authorities have strengthened the management of tax rebates in the near stage. "This should be a precursor to the reduction in tax rates." Zhang Qingzeng said that he also received news from unofficial sources that the textile industry tax rebate ratio will be reduced from 13% to 11%.
The adjustment ratio of export tax rebates for individual industries will be relatively large. Relevant persons from the Beijing Municipal Bureau of Commerce have judged that industries such as steel are likely to be adjusted from the current 11% to 6%.
It is reported that in order to implement the spirit of the Prime Minister’s Office to limit the export of “high investment, high energy consumption, high pollution and low value-added products and resource productsâ€, the State Administration of Taxation’s documents mentioned the “two high and one capital†export tax rebate adjustment. It is likely to be greatly reduced or cancelled in full, and there may even be a possibility of adding environmental taxes and resource taxes.
“2%â€, the pain of foreign trade enterprises “The foreign trade business is difficult to do.†The person in charge of the casting department of Hunan Arts and Crafts Import and Export Corporation said that this was the “first reaction†when he heard the statement that the export tax rebate would be lowered. The company exported more than 20 million US dollars last year. It is an old-fashioned foreign trade company in Hunan Province, specializing in ceramics, shoes and paper products.
Many textile export enterprises are even puzzled by adjusting export tax rebates. Zhou Xiaonan, deputy general manager of Ningbo Dunhuang Import and Export Co., Ltd., calculated the account for the reporter. Now the gross profit of the textile industry is about 3% to 4%. Excluding various expenses, the net profit is less than 1%. Therefore, the export tax rebate is reduced. 2% will cause “zero profit†for many companies.
Zhou Xiaonan said that the previous export tax rebate was reduced from 15% to 13%. Most overseas buyers are not willing to bear the increased costs. Some domestic textile companies are dealing with the practice of cutting costs by cutting corners, so customers find product quality. Immediately after the decline, the price is lowered.
"Most foreign companies have also adopted a strategy of not moving." Chen Shuangrong, a partner of Ernst & Young Hua Ming Certified Public Accountants, said, "At present, more than 50% of China's exports are exported by foreign-invested enterprises, and a large part of them are sold to the parent company. It will be resold to other countries and regions. If the tax rebate is reduced or cancelled, the increased cost will have a great impact on the competitiveness of the goods produced in China. In particular, the products of foreign-invested enterprises may not be sold to the final consumption point. It’s a bit unfair to bear the extra tax costs."
Should we give the company an adaptation period? The Ministry of Finance said that it is not clear at the moment. Long Guoqiang, deputy director of the Foreign Economic Research Department of the Development Research Center of the State Council, believes that according to international practice, enterprises should be given an appropriate preparation period, and this adaptation period should be more suitable from three months to six months.
"Past policies are often announced in the current or after the event, and corporate decision-making needs to bear a lot of risks. To ensure the profit of the enterprise, the adjustment of the export tax rebate rate must allow the enterprise to have sufficient preparation." Long Guoqiang said.
Change exports to overseas investment?
Faced with the adjustment of the export tax rebate policy, some flexible companies have begun to plan ahead.
Gui Mingjun, the boss of Ningbo Tonghui Trading Co., revealed: "Now many enterprises in Jiangsu and Zhejiang are more willing to register with the EU and enjoy the same market treatment as EU enterprises. The export tax rebate rate will be greatly reduced, which will make this trend more obvious. ."
"The EU has no restrictions on Chinese investment," EU Trade Commissioner Peter Mandelson said during a recent visit to China. It is reported that the EU single market has no internal border restrictions, companies can freely choose the best business base, and the EU countries are also trying their best to attract foreign investment.
Zhang Bin, who is busy preparing for the company in the Netherlands, is more aware of the local macro situation. He introduced that the Dutch tax environment has always been competitive in the EU countries, and certain characteristics of its tax system are very conducive to the international tax planning of multinational companies.
Zhang Bin's trading company has a wide range of business, including municipal facilities, energy development, and technology trade. "As long as the Western countries eliminate the obstacles artificially set in trade, the prospects for Chinese products in the European market are quite optimistic. It seems that instead of exporting, it is better to invest directly in foreign investment."
The authenticity of this information has not been confirmed by the international electrical network, for your reference only.
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