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Pursuing Tax Refunds

Q: Ours is a foreign-funded research and development institution headquartered in Beijing, and we have established a branch institution in Shanghai. Should our domestic equipment purchases for the branch institution be approved in Beijing or Shanghai?

A: According to the Proposed Management Methods for Tax Refund to Foreign-funded Enterprises for Their Domestic Equipment Purchases (State Administration of Taxation issue, No. 111 [2006]), the foreign-funded company and their branch should apply to the local administrative department for the domestic equipment purchases to activate the tax refund process.

Q: Ours is a foreign-funded company in the milk production industry. We have bought some equipment; now, may we apply for a value-added tax refund?

A: According to the rules, a foreign-funded company belonging to the value-added tax general taxpayer class should go to the administrative tax department to get an attestation within 30 days after the opening of the Special Invoice of Value-Added Tax of the domestic equipment purchase. Companies that fail to get an attestation cannot obtain a refund.

The foreign-funded company should complete an Application Form for Tax Refund to Foreign-funded Enterprises for Their Domestic Equipment Purchases within 90 days after opening a Special Invoice of Value-Added Tax for an equipment purchase, and it should get the domestic equipment purchase tax refund processed at their local administrative department.

Q: Ours is a foreign-funded enterprise established in 2002 with the approval of the Beijing Municipal Development and Reform  Commission and engages in automobile parts manufacturing. For additional development, we need to add more capital, but the foreign party won’t supply the added registered capital. Can this programme qualify for a refund?

A: You cannot get a refund under current policies. Only foreign registered capital invested by an enterprise’s Sino-foreign joint ventures, Sino-foreign cooperative enterprise and foreign-funded enterprise can qualify for a refund under the capital-added programme.

Q: Ours is a Sino-Japanese joint venture biopharmaceutical company in Beijing. Under the tax refund policy, we have noticed that domestic equipment purchases for “encouraged” programmes in the Catalogue for the Guidance of Foreign Investment Industries and foreign-funded programmes in the Foreign Invested Superior Industry Contents in Middle and Western China only may qualify for the value-added tax refund policy. Can a company that is in line with both of these two categories, or even just one, qualify for a tax refund under these policies?

A: Foreign Invested Superior Industry Contents in Middle and Western China are some of the “encouraged” articles for development programmes in Central and West China that involve the use of foreign funds. The foreign-funded companies in Beijing purchasing the equipment that operate in line with the Catalogue for the Guidance of Foreign Investment Industries and not listed in the Catalogue of Import Commodities for Domestic Investment Projects with No Tax Exemption can enjoy the tax refund policy.

Q: I am American and am planning to open a restaurant and bar (less than 200,000 yuan start-up capital) in the Sanlitun area. But I do not have a business already established in the United States. How does this affect my registration process? Do I still follow the same procedures as a foreign investment enterprise? Who do I contact to get help with the registration process?

A: An individual foreign investor can open a programme in Beijing. According to the approval purview, your programme should be approved by the development and reform department of the district or county in which your business is to be located. You also can go to the commercial bureau of the district or county for processing of your application. Sanlitun is administered by Chaoyang District; so please consult the Beijing Chaoyang District Bureau of Commerce.

Tel: +86 10 8468 1109

WWW: http://swj.bjchy.gov.cn

外商投资项目中采购国产设备问题解答

问：我们是一家总部设在北京的外资研发机构，已在上海设立一家研发分支机构，请问分支机构采购国产设备在北京还是在上海报批？

答：按照《外商投资项目采购国产设备退税管理试行办法》（国税发[2006]111号）外商投资企业以其分公司（分厂）的名义采购的自用国产设备，由该分公司（分厂）向所在地主管退税机关申请办理退税。

问：我们是一家从事乳制品生产的外资企业，已经采购了部分设备，请问还能办理退增值税？

答：按照规定，属于增值税一般纳税人的外商投资企业购买国产设备后,应自购买设备开具增值税专用发票的开票之日起30日内 ,到其主管征税机关认证，未经过认证或认证未通过的一律不予办理退税。

外商投资企业应自购买设备开具增值税专用发票的开票之日起90日内，填写《外商投资项目采购国产设备退税申请表》,向其所在地主管退税机关申请办理国产设备的退税手续。

问：我们是一家汽车零部件生产外资企业，2002年经发改委立项成立。现在由于发展需要想增资，但外方并没有增加注册资本。请问这样的项目能够享受退税政策吗？

答：不能享受退税政策。按照规定，只有中外合资企业、中外合作企业和外商独资企业通过增加外方注册资本扩大项目投资总额的增资项目才能享受政策优惠。

问：我们是一家在京的中日合资生物制药企业，看到退税政策中规定：属于《外商投资产业指导目录》中鼓励类和《中西部地区外商投资优势产业目录》的外商投资项目所采购的国产设备才能享受增值税退税政策。请问，是必须都符合上述两个目录、还是只需符合其中一个目录就可以享受退税政策？

答：《中西部地区外商投资优势产业目录》是针对外商向中西部地区投资的项目适用的鼓励类条目。在京设立的外资企业只需要符合《外商投资产业指导目录》中鼓励类条目，采购设备且不在《外商投资项目不予免税的进口商品目录》中就可以享受增值税退税政策。