Declaration of Export Tax Refunds Allowed to be Postponed

Declaration of Export Tax Refunds Allowed to be Postponed

To deepen the Spring Breeze Campaign for More Convenient Taxation Services, the State Administration of Taxation (SAT) recently released a circular, specifying that exporters or other companies who fail to collect all the documents to apply for export tax refunds (exemption) on time due to 7 special reasons can apply for an extension of the application period before July 31, 2015, which can further optimize the services for export tax refunds and maximize convenience for taxpayers.

According to head of the SAT Goods and Services Taxation Department, since the beginning of this year, some exporters have failed to apply for export tax refunds (exemption) within the deadline for application due to their negligence, and will face rejection of their application for export tax refunds or have to pay tax like those conducting domestic sales, and thus will suffer huge losses. But the fact that some government departments issue the evidencing materials for export tax refunds (exemption) after the deadline for application also partially causes companies' failure to make a timely application. To better support the development of exporters, the SAT released a circular, specifying that the deadline for application will be extended from April 15, 2015 to July 31 for exporters fail to apply on time due to special causes.

The special causes, according to the circular, include force majeure such as natural diseases and emergencies; application certificates for export tax refunds (exemption) being stolen, robbed, or lost or miscarried by mail; application proof for export tax refunds (exemption) being kept by a judicial or an administrative authority for certain business activities or inspections; failure to obtain the application proof for export tax refund (exemption) on time due to economic disputes; failure to provide the application proof for export tax refunds (exemption) due to injuries, or catastrophic diseases infected by persons handling tax matters in the company or resignation of persons handling tax matters in the company without going through handover procedures; failure of the Customs to complete the modification of the Customs Declaration for Exports before the deadline for application for export tax refunds (exemption), as requested by the company, and to provide the Customs Declaration for Exports on time; issuance of the proof necessary for application for export tax refunds (exemption) by relevant government departments after the deadline for application.

"Streamlining administration and delegating power is another key part of the circular." According to the head, to further implement the requirements of the State Council on functional transformation, streamlining administration and delegating power, and combination of regulation and deregulation, the circular delegates the power to verify the extension of the application period for export tax refunds (exemption) from the provincial state tax bureaus to the state tax bureaus with the authority to approve export tax refunds (exemption), with the verification efforts to be completed within 20 working days following the acceptance of the application to offer further convenience to taxpayers. Provincial state tax bureaus are required to take measures to closely monitor the verification of the application with the deadline postponed and randomly review the verification results to guard against tax risks.

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