- The article discusses how advanced manufacturing companies in China can apply for an additional VAT deduction in 2025.
- The policy allows eligible companies to reduce their VAT payable by an additional five percent on deductible input VAT from 2023 to 2027.
- Companies must apply annually, and eligibility is determined by local industry and tax authorities.
- On May 28, 2025, guidelines for the 2025 application process were issued by MIIT, MOF, and STA.
- Specific regional guidelines, such as those from Shanghai, were released subsequently.
- Eligibility criteria include having HNTE status in 2025 and meeting specific R&D and sales requirements.
- At least 50 percent of total sales revenue must come from manufacturing activities, excluding VAT.
- Outsourced production sales do not count, but processing fees can be included.
Source: china-briefing.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
Latest Posts in "China"
- China’s E‑Fapiao System: A Comprehensive Guide to Digital VAT Invoicing and Compliance
- China’s New VAT Rules: Key Compliance Changes and Deadlines for Businesses from 2026
- China Updates VAT Administration: New Law, SME Enforcement, E-Commerce Relief, Import Incentives Extended
- EPPO Raids in Germany Over Suspected €1.6 Million Aluminium Customs Fraud from China
- China Clarifies SME Tax Preference Rules: New Tests Target Artificial Revenue Splitting and Abuse
