- Starting September 2025, China will introduce a new VAT refund policy allowing eligible taxpayers to claim refunds on unused retained tax credits. Manufacturing, scientific research, software, IT services, and environmental management sectors can apply for monthly refunds. The real estate sector has stricter criteria, requiring positive retained credits for six months and at least RMB 500,000 in credits, with a 60% refund on credit increases. Other industries can apply if they have positive retained credits for six months and an increase of at least RMB 500,000, with refund rates of 60% for increases up to RMB 100 million and 30% for amounts over RMB 100 million. Real estate developers not meeting specific conditions can apply under general rules.
Source: vatcalc.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.
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