The State Council approves the export tax rebate policy for RMB settlement in border countries

According to Wang Zhenhua, deputy director of the Goods and Services Tax Department of the State Administration of Taxation, the export tax rebate policy for general trade exports settled in RMB to border and neighboring countries has been approved by the State Council, and relevant measures will be promulgated in the near future.

Wang Zhenhua made the above statement at the "Third Yangtze River Delta Financial Forum". He also said that the measure will benefit border enterprises and optimize the foreign trade environment.

Regarding the current cross-border trade RMB settlement pilot enterprises that can handle tax refunds without providing verification forms, Wang Zhenhua said: "Based on the principle of matching invoices and goods for export tax refunds, especially in the context of the continuous expansion of cross-border trade pilots that generally increase export tax refunds, there are also certain risks objectively."

Wang Zhenhua further stated, “Therefore, I remind the relevant government departments in the pilot areas to strictly control and include enterprises that do have cross-border trade RMB settlement needs and have not committed major violations of laws and disciplines in recent years into the pilot program.”

Wang Zhenhua also pointed out that it is necessary to rely on the information sharing mechanism established by the People's Bank of China and the tax department to monitor information on imported and exported goods, RMB, etc., and jointly strengthen supervision of the flow of RMB settlement funds for cross-border trade to reduce risks.

Source: China Business Network