Tax Refund Policy for 2022

Eligible small and micro enterprises (including individual industrial and commercial households)

Intensify the end-of-period VAT refund policy for small and micro enterprises, and fully refund the VAT for advanced manufacturing industries on a monthly basis The scope of the incremental retained tax credit policy has been expanded to qualifying small and micro enterprises (including individual industrial and commercial households, the same below), and the existing retained tax credits of small and micro enterprises will be refunded in one go.

1. Qualified small and micro enterprises can apply to the competent tax authorities for a refund of the incremental excess tax credit starting from the tax declaration period in April 2022.

2. Qualified micro-enterprises can apply to the competent tax authorities for a one-time refund of the existing retained tax credits starting from the tax declaration period in April 2022; qualified small enterprises can apply from May 2022 From the tax declaration period, apply to the competent tax authorities for a one-time refund of the existing tax credits.

Accelerate the implementation progress of the excess tax refund policy for small and micro enterprises, in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Further Strengthening the Implementation of the End-of-Period Value-Added Tax Credit Refund Policy" (Announcement of the Ministry of Finance and the State Administration of Taxation in 2022 No. 14 (hereinafter referred to as Announcement No. 14 of 2022) stipulates that the tax refund for small and micro enterprises should be processed as soon as possible. On the basis of voluntary application by taxpayers, the tax refund progress should be accelerated, and the existing tax credits for micro and small enterprises should be actively implemented. Tax refund policy for centralized refunds before April 30, 2022, and before June 30, 2022.

1. Before December 31, 2022, taxpayers must meet the following conditions to enjoy tax refunds:

(1) The tax credit rating is A or B;

(2) There has been no fraudulent use of retained tax refunds, export tax refunds or false VAT invoices in the 36 months before applying for tax refund;

(3) There has been no fraud in the past 36 months before applying for tax refund. Tax evasion has been punished by the tax authorities twice or more;

(4) From April 1, 2019, the tax evasion policy is not applicable to tax refunds and tax refunds (refunds after tax).

2. The incremental retained tax credit shall be determined according to the following circumstances:

(1) Before the taxpayer obtains a one-time refund of the existing retained tax credit, the incremental retained tax credit shall be the balance retained at the end of the current period. The tax credit amount is the newly increased amount of retained tax credit compared to March 31, 2019.

(2) After a taxpayer obtains a one-time refund of existing tax credits, the incremental tax credit amount shall be the closing tax credit amount of the current period.

3. The amount of the remaining tax credit shall be determined according to the following circumstances:

(1) Before the taxpayer obtains a one-time refund of the tax credit for the current period, the amount of the tax credit left at the end of the current period is greater than or equal to 2019 If the tax credit left at the end of March 31, 2019, the remaining tax credit is the tax credit left at the end of March 31, 2019; if the tax credit left at the end of the current period is less than the tax credit left at the end of March 31, 2019, the tax credit left in stock is the tax credit left at the end of March 31, 2019. The tax credit left at the end of the period.

(2) After a taxpayer obtains a one-time refund of the existing excess tax credit, the amount of the existing excess tax credit will be zero.

4. The taxpayer calculates the amount of refundable excess tax credit allowed according to the following formula:

The amount of incremental tax credit allowed to be refunded = the amount of incremental tax credit × input composition ratio × 100%

The amount of retained tax credits allowed to be refunded = the amount of retained tax credits Special VAT invoices that have been deducted in the period (including fully digitalized electronic invoices with the words "Special VAT Invoice", unified invoices for tax-controlled motor vehicle sales), electronic general VAT invoices for toll highway tolls, and special customs import VAT invoices The value-added tax amount stated in the payment letter and tax payment voucher accounts for the proportion of the total input tax deducted during the same period.

5. If taxpayers export goods and services and engage in cross-border taxable activities, and the tax exemption, offset and refund methods are applicable, they should first apply for tax exemption, offset and refund. After the tax exemption, credit and refund is completed, if the specified conditions are still met, you can apply for a refund of the retained tax credit; if the tax exemption and refund method is applicable, the relevant input tax shall not be used to refund the retained tax credit.

6. Taxpayers who have obtained excess tax refunds since April 1, 2019, may no longer apply to enjoy the policy of VAT refund immediately after collection, or VAT refund after collection (refund). Taxpayers can pay back all the excess tax refunds they have received in one go before October 31, 2022, and then apply to enjoy the policy of VAT refund immediately after collection, or VAT refund after collection (refund) in accordance with regulations.

Taxpayers who have enjoyed the VAT refund after collection, VAT collection first and refund (refund) policy since April 1, 2019, can return the VAT in one lump sum before October 31, 2022. The VAT shall be refunded as soon as it is collected, or refunded (refunded after it is collected). After all the tax has been paid, the refund of the excess tax credit shall be applied for in accordance with the regulations.

7. Taxpayers can choose to apply for a tax refund from the competent tax authorities, or they can choose to carry forward the tax deduction to the next period. Taxpayers should apply for a tax refund after completing the VAT return for the current period during the tax return period. The application time for excess tax refund from April to June 2022 will be extended to the last working day of each month.

Legal basis:

"Tax Collection and Management Law of the People's Republic of China"

Article 1 is to strengthen tax collection management, standardize tax collection and This law is formulated to ensure national tax revenue, protect the legitimate rights and interests of taxpayers, and promote economic and social development.

Article 2 This Law shall apply to the collection and management of various taxes collected by tax authorities in accordance with the law.

Article 3 The introduction and suspension of tax collection, tax reduction, tax exemption, tax refund, and tax repayment shall be implemented in accordance with the provisions of the law; where the law authorizes the State Council to stipulate it, it shall be implemented in accordance with the provisions of the administrative regulations formulated by the State Council.

No agency, unit or individual may violate the provisions of laws and administrative regulations by arbitrarily making tax levies, suspensions, tax reductions, tax exemptions, tax refunds, tax repayments, and other measures that conflict with tax laws and administrative regulations. Decide.

Article 4 Laws and administrative regulations stipulate that entities and individuals with tax obligations are taxpayers.

Laws and administrative regulations stipulate that entities and individuals with the obligation to withhold and pay, collect and remit taxes are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes, and collect and remit taxes in accordance with the provisions of laws and administrative regulations.