(December 5,1998)
The Ministry of Foreign Economic Relations and Trade, the Ministry of Finance and General Administration of Taxation:
Your Request for Instructions on Issues of Tax Collection Policy on Foreign Investment Enterprises with Establishment Approved before December 31, 1993 was received. The official reply is hereby given as follows:
1. According to the Decision of the Standing Committee of the National People's Congress Regarding the Application of Provisional Regulations on Such Taxes as Value-added Tax, Consumption Tax and Business Tax to Enterprises with Foreign of the foreign investment enterprises with establishment approved before December 31, 1993 shall be implemented until the end of 1998, and there shall be no more extension thereafter.
2. Application of the policy of no imposition and no refund to the export of goods of foreign investment enterprises with establishment approved before December 31,1993, (namely: the measures to exempt from taxation export goods, to levy a domestic tax on raw materials procured domestically, to exempt from tax the last link of export, and not to deduct or refund for the tax amount on imported items) shall continue to be implemented up to the end of the year 2000.
3. The existing measures for export tax refund shall continue to be implemented with respect to the export goods of foreign investment enterprises with establishment approved after January 1, 1994.
4. You are to promulgate and organize implementation of specific measures.
