优化税收营商环境
Guidelines on the Preferential Tax Policies Supporting Green Development
I. Supporting environmental protection 4
(I) Tax preferences for environmental protection 4
4. Exemption of urban land use tax on public green land outside enterprise factory 7
(II) Tax preferences for water and land conservation 8
II. Promoting energy conservation and environmental protection 9
(I) Tax preferences for contract-based energy management projects 9
7. Exemption of VAT (goods) for the time being on contract-based energy management projects 9
8. Exemption of VAT (services) on contract-based energy management projects 10
(II) Tax preferences for heat supply enterprises 13
10. Exemption of VAT on the heating fee income obtained by heat supply enterprises 13
11. Exemption of property tax on plants used by heat supply enterprises supplying heat to residents 14
(III) Tax preferences for energy-saving and environment-friendly batteries and coatings 17
13. Exemption of consumption tax on energy-saving and environment-friendly batteries 17
14. Exemption of consumption tax on energy-saving and environment-friendly coatings 17
(IV) Tax preferences for energy and water conservation 18
15. Exemption of VAT on drip irrigation products 18
(V) Tax preferences for new-energy vehicles and vessels 21
18. Exemption of vehicle and vessel tax on new-energy vehicles and vessels 21
19. Reduction of vehicle and vessel tax by half on energy-saving vehicles 23
20. Exemption of vehicle acquisition tax on new-energy automobiles 25
(VI) Tax preferences for saving water resources 26
21. Exemption of water resource tax on the use of reclaimed wastewater 26
22. Exemption of water resource tax on the use of water for pumped-storage power generation 26
(VII) Tax preferences for reducing pollutant discharge 28
III. Encouraging comprehensive utilization of resources 29
(I) Tax preferences for comprehensive utilization of resources 29
27. Immediate refund upon payment of VAT on new-type wall materials 29
28. Immediate refund upon payment of VAT on products and labor services involving the comprehensive utilization of resources 30
29. Downsizing of the income generated from producing products by way of comprehensive utilization of resources in the calculation of the amount of taxable income 33
30. Exemption of consumption tax on pure biodiesel made from waste animal fat or vegetable oil 34
31. Exemption of consumption tax on industrial oil produced by using waste mineral oil 35
32. Exemption of deed tax on the use of unclaimed mountains, land and mudflats for agriculture, forestry, animal husbandry and fishery 37
33. Exemption of environmental protection tax on solid wastes comprehensively utilized 40
(II) Tax preferences for sewage treatment 38
34. Immediate refund upon payment of VAT or exemption of VAT on the reclaimed water produced by sewage treatment plants 38
35. Immediate refund upon payment of VAT or exemption of VAT on labor services of garbage disposal and sludge treatment 40
36. Immediate refund upon payment of VAT or exemption of VAT on labor services of sewage treatment 43
37. Exemption of VAT on polluted water treatment fees 45
(III) Tax preferences for the mining of mineral resources 46
38. Exemption of resource tax on the coal gas/coalbed methane (CBM) extracted by coal mining enterprises 46
39. Reduction of resource tax for mineral products exploited from mines at the stage of depletion 46
40. Reduction of Resource Tax on the Coal Replaced by Filling Mining 46
41. Exemption or reduction of resource tax for the mining of paragenic or associated minerals 47
42. Exemption or reduction of resource tax for the mining of low-grade ores 47
43. Exemption or reduction of resource tax on the mining of tailings 48
44. Reduction of resource tax on shale gas 48
(IV) Tax preferences for the construction of water conservancy projects 49
45. Exemption of urban maintenance and construction tax on the funds for the construction of major national water conservancy projects 49
46. Exemption of educational surcharges on the funds for the construction of major national water conservancy projects 49
47. Reduction of farmland occupation tax on the farmland occupied by water conservancy projects 50
IV. Promoting the development of low-carbon industry 50
(I) Tax preferences for the China Clean Development Mechanism Fund (CCDMF) and clean development mechanism projects 50
48. Exemption of enterprise income tax on the income obtained by the China Clean Development Mechanism Fund (CCDMF) 50
49. Reduction and exemption of enterprise income tax on the implementation of clean development mechanism projects 51
(II) Tax preferences for wind power generation, hydroelectric power generation, photovoltaic power generation and nuclear power industries 52
50. Immediate refund upon payment of VAT on wind power generation 52
51. Exemption of urban land use tax for part of the land used by hydropower stations 53
52. Exemption of the funds for the construction of major national water conservancy projects for self-generated and self-used electricity of distributed photovoltaic power 53
53. Exemption of the surcharges on electricity generated from renewable energy sources on self-generated and self-used electricity of distributed photovoltaic power 54
54. Exemption of the funds for follow-up support for large- and medium-sized reservoir-induced resettlement on self-generated and self-used electricity of distributed photovoltaic power 55
55. Exemption of the funds for rural power grid loan repayment on self-generated and self-used electricity of distributed photovoltaic power 55
56. Exemption of urban land use tax for part of the land used by nuclear power stations 62
(I) Tax preferences for environmental protection
1. Regular reduction and exemption of the enterprise income tax on the income generated from engaging in qualified environmental protection projects
[Subjects]
Enterprises engaging in qualified environmental protection projects
[Preferences]
For the income generated from engaging in qualified environmental protection projects, the enterprise income tax shall be exempted from the first to third year as of the taxable year in which the first production and operation income of such projects is attributable, and shall be levied by half from the fourth to sixth year since the aforesaid taxable year.
[Qualifications]
Qualified environmental protection projects, including public sewage treatment, public garbage treatment, comprehensive development and utilization of biogas, etc. The specific requirements and scope of those projects are specified in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version).
Where an enterprise engaging in any energy and water conservation project within the scope specified in the Notice of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on Promulgation of the Catalogue for Enterprise Income Tax Preferences for Environmental Protection and Energy and Water Saving Programs (Trial) (No. 166 [2009] of the Ministry of Finance and the State Taxation Administration) and the Notice by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission of Including Power Generation with Landfill Biogas in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (for Trial Implementation) (No. 131 [2016] of the Ministry of Finance and the State Taxation Administration) has entered the preferential period before December 31, 2021, it may continue to enjoy relevant preferences according to the former policies until the expiration of the preferential period. Where an enterprise engaging in any project within the scope specified in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version) has obtained its first production and operation income before December 31, 2020, it may enjoy preferential policies during the remaining period until the expiration of the preferential period.
[Policy Basis]
1. Paragraph 3, Article 27, Enterprise Income Tax Law of the People's Republic of China
2. Article 88, Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
3. Notice of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on Promulgation of the Catalogue for Enterprise Income Tax Preferences for Environmental Protection and Energy and Water Saving Programs (Trial) (No. 166 [2009] of the Ministry of Finance and the State Taxation Administration)
4. Notice by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission of Including Power Generation with Landfill Biogas in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (for Trial Implementation) (No. 131 [2016] of the Ministry of Finance and the State Taxation Administration)
5. Article 1 and Article 2, Announcement of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Ecology and Environment on Issuing the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version) and the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences (2021 Version) (No. 36 [2021])
2. Deduction of the amount of an enterprise’s investment in the purchase of special equipment for environmental protection from enterprise income tax amount at a certain rate
[Subjects]
Enterprises purchasing special equipment for environmental protection
[Preferences]
If an enterprise purchases and actually uses the special equipment of environmental protection, as prescribed in the Catalogues of the Special Equipment for Environmental Protection Eligible for Enterprise Income Tax Preferences, 10
of the money invested on the aforesaid equipment may be counteracted from the enterprise's enterprise taxable income in the current year when the aforesaid equipment is purchased; and if the enterprise taxable income is not sufficient for counteraction, the remaining part of the aforesaid 10% of the money invested may be counteracted in the following five taxpaying years.
[Qualifications]
The enterprise actually purchases and uses the equipment specified in the Catalogues of the Special Equipment for Environmental Protection Eligible for Enterprise Income Tax Preferences. If the enterprise transfers or leases the equipment mentioned above within 5 years after purchasing the aforesaid equipment, it shall no longer enjoy the preferential enterprise income tax, and shall repay the amount of enterprise income tax that has been counteracted.
[Policy Basis]
1. Article 34, Enterprise Income Tax Law of the People's Republic of China
2. Article 100, Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
3. Notice of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and Other Departments on Issuing the Catalogues of the Special Equipment for Energy and Water Conservation and Environmental Protection Eligible for Enterprise Income Tax Preferences (2017 Version) (No. 71 [2017] of the Ministry of Finance and the State Taxation Administration)
3. 15% reduction in enterprise income tax on third-party enterprises engaging in pollution prevention and control
[Subjects]
Enterprises entrusted by pollutant-discharging enterprises or governments to operate environmental pollution control facilities (including automatic continuous monitoring facilities)
[Preferences]
The enterprise income tax on eligible third-party enterprises engaging in pollution prevention and control (hereinafter referred to as “third-party pollution prevention and control enterprises”) shall be levied at the reduced rate of 15
from January 1, 2019 to December 31, 2023.
[Qualifications]
Eligible third-party enterprises shall meet the following conditions:
1. They shall be resident enterprises legally registered in China (excluding Hong Kong, Macao and Taiwan);
2. They shall have more than 1 year’s experience of continuously engaging in the operation of environmental pollution control facilities and be capable of ensuring their normal operation;
3. They shall have at least 5 technicians working in the field in question and with intermediate or higher technical titles in environmental protection-related disciplines, or at least 2 technicians working in the field in question and with senior or higher technical titles in environmental protection-related disciplines;
4. Their annual operating income of environmental protection facilities accounts for no less than 60
of the gross income;
5. They shall be capable of conducting tests and have self-owned laboratories and instruments that can detect normal pollutants within the operation service scope;
6. They shall be capable of ensuring the normal operation of the environmental protection facilities they own, and that the pollutant discharge indicators meet the national or local discharge standards consecutively;
7. They shall have good tax credit and have not been rated Grade C or D in terms of tax credit in the past three years.
[Policy Basis]
1. Announcement of the State Taxation Administration, the National Development and Reform Commission and the Ministry of Ecology and Environment on Issues Concerning the Implementation of Enterprise Income Tax Policies for Third-Party Enterprises Engaged in Pollution Prevention and Control (No. 60 [2019])
2. Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Implementation Period of Certain Preferential Tax Policies (No. 4 [2022])
4. Exemption of urban land use tax on public green land outside enterprise factory
[Subjects]
Taxpayers of urban land use tax on public green land outside the enterprise factory (including production, office and living area) and public park land open to the public
[Preferences]
The public green land outside the enterprise factory (including production, office and living area) and public park land open to the public shall be exempt from land use tax.
[Qualifications]
Public green land outside the enterprise factory (including production, office and living area) and public park land open to the public.
[Policy Basis]
Article 13, Notice of the State Taxation Administration on Issuing the Supplementary Provisions on Some Specific Issues about the Urban Land Use Tax (GSDZ No. 140 [1989])
(II) Tax preferences for water and land conservation
5. Exemption of compensation fees for water and soil conservation on the construction of municipal infrastructure projects for the protection of the ecological environment
[Subjects]
Taxpayers of compensation fees for water and soil conservation on the construction of municipal infrastructure projects for the protection of the ecological environment
[Preferences]
The compensation fees for water and soil conservation are exempted from the construction of municipal infrastructure projects to protect the ecological environment.
[Qualifications]
The taxpayer engages in the construction of municipal infrastructure projects to protect the ecological environment.
[Policy Basis]
Paragraph 4, Article 11, Notice of the Ministry of Finance, the National Development and Reform Commission, the Ministry of Water Resources, and the People's Bank of China on Issuing the Administrative Measures for the Collection and Use of Compensation Fees for Water and Soil Conservation (CZ No. 8 [2014])
6. Exemption of compensation fees for water and soil conservation on water and soil loss control projects carried out according to soil and water conservation plans
[Subjects]
Taxpayers of compensation fees for water and soil conservation on water and soil loss control projects carried out according to soil and water conservation plans
[Preferences]
The compensation fees for water and soil conservation are exempted on water and soil loss control projects carried out according to soil and water conservation plans.
[Qualifications]
Water and soil loss control projects are carried out according to soil and water conservation plans.
[Policy Basis]
Paragraph 6, Article 11, Notice of the Ministry of Finance, the National Development and Reform Commission, the Ministry of Water Resources, and the People's Bank of China on Issuing the Administrative Measures for the Collection and Use of Compensation Fees for Water and Soil Conservation (CZ No. 8 [2014])
(I) Tax preferences for contract-based energy management projects
7. Exemption of VAT (goods) for the time being on contract-based energy management projects
[Subjects]
Energy services companies implementing eligible contract-based energy management projects
[Preferences]
Energy services companies shall be exempted from VAT for the time being for transferring goods subject to value-added tax involved in contract-based energy management projects to energy-consuming enterprises.
[Qualifications]
1. Technologies adopted by energy services companies in contract-based energy management projects shall conform to the technical requirements of the General Technical Rules for Contract-based Energy Management (GB/T24915-2010) as promulgated by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration (already replaced by the General Technical Rules for Contract-based Energy Management (GB/T24915-2020), the same below).
2. The format and contents of the Contract on the Sharing of Savings from Energy Conservation as concluded by and between energy services companies and energy-consuming enterprises shall conform to the Contract Law, the General Technical Rules for Contract-based Energy Management (GB/T24915-2010) as promulgated by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration and other relevant provisions.
[Policy Basis]
Paragraphs 2 and 3, Article 1, Notice of the Ministry of Finance and the State Taxation Administration on Issues Concerning the Value-added Tax, Business Tax and Enterprise Income Tax Policies for Promoting the Development of the Energy Services Sector (No. 110 [2010] of the Ministry of Finance and the State Taxation Administration)
8. Exemption of VAT (services) on contract-based energy management projects
[Subjects]
Energy services companies implementing eligible contract-based energy management services
[Preferences]
Energy services companies shall be exempted from VAT for implementing eligible contract-based energy management services.
[Qualifications]
1. Technologies adopted by energy services companies in contract-based energy management projects shall conform to the technical requirements of the General Technical Rules for Contract-based Energy Management (GB/T24915-2010) as promulgated by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration.
2. The format and contents of the Contract on the Sharing of Savings from Energy Conservation as concluded by and between energy services companies and energy-consuming enterprises shall conform to the Contract Law of the People's Republic of China, the General Technical Rules for Contract-based Energy Management (GB/T24915-2010) and other relevant provisions.
[Policy Basis]
Paragraph 27, Article 1, Annex III, Notice of the Ministry of Finance and the State Taxation Administration on Implementing the Pilot Program of Replacing Business Tax with Value-Added Tax in an All-round Manner (No. 36 [2016] of the Ministry of Finance and the State Taxation Administration )
9. Regular reduction and exemption of enterprise income tax on the income generated by energy services companies from implementing contract-based energy management projects
[Subjects]
Energy services companies implementing eligible contract-based energy management projects
[Preferences]
Since January 1, 2011, for enterprises implementing eligible contract-based energy management projects according to relevant provisions in the Enterprise Income Tax Law, the enterprise income tax shall be exempted from the first to third year as of the year in which the first production or operation income is attributable, and shall be levied by half at the statutory tax rate of 25
from the fourth to sixth year since the aforesaid taxable year.
[Qualifications]
1. For energy services companies which meet the prescribed conditions and energy-consuming enterprises that have signed the Contract on the Sharing of Savings from Energy Conservation with the aforesaid energy services companies, the enterprise income tax on relevant assets for the implementation of contract-based energy management projects shall be subject to the following provisions:
（1） Reasonable expenses actually paid by the energy-consuming enterprises to energy services companies according to the energy management contract may be deducted from the amount of taxable income for the current period when it is calculated, and service fees and asset prices are no longer separated in tax treatment;
（2） Upon the expiration of the energy management contract, the assets that are transferred from energy services companies to energy-consuming enterprises and are generated from the implementation of contract-based energy management projects shall be subject to tax treatment as if they are assets whose depreciation or amortization is due; the tax base for relevant assets received by energy-consuming enterprises from energy services companies shall also be determined as if they are assets whose depreciation or amortization is due;
（3） Upon the expiration of the energy management contract, the prices of relevant assets already paid by energy-consuming enterprises when energy services companies are transferring the ownership of such assets to energy-consuming enterprises shall not be further counted in the revenue of energy services companies.
2. The term “meet the prescribed conditions” refers to meeting the following conditions:
(1) Specialized energy services companies with independent legal personality, having a registered capital of at least 1 million yuan, and able to independently provide energy use diagnosis, energy-saving project design, financing, transformation (including construction, equipment installation, commissioning, acceptance, etc.), operation management, personnel training and other services;
(2) Technologies adopted by energy services companies in contract-based energy management projects shall conform to the technical requirements of the General Technical Rules for Contract-based Energy Management (GB/T24915-2010) as promulgated by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration.
(3) The format and contents of the Contract on the Sharing of Savings from Energy Conservation as concluded by and between energy services companies and energy-consuming enterprises shall conform to the Contract Law, the General Technical Rules for Contract-based Energy Management (GB/T24915-2010) as promulgated by the General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China and the Standardization Administration and other relevant provisions;
(4) The contract-based energy management projects implemented by the energy services companies comply with the items and conditions in Paragraphs 1 to 8 of “4. Technology Transformation for Energy Conservation and Emission Reduction” in the Notice of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on Promulgation of the Catalogue for Enterprise Income Tax Preferences for Environmental Protection and Energy and Water Saving Programs (Trial) (No. 166 [2009] of the Ministry of Finance and the State Taxation Administration);
(5) The amount invested by the energy services companies shall not be less than 70
of their total investment in contract-based energy management projects;
(6) The energy services companies have appropriate full-time technicians and energy contract management professionals and are capable of ensuring the successful implementation and stable running of contract-based energy management projects.
3. The costs or expenses in business transactions between energy services companies and energy-consuming enterprises shall be collected or paid as if they are business transactions between independent enterprises.
4. For the assets that are transferred from energy services companies and related to the implementation of contract-based energy management projects, the energy-consuming enterprises shall conduct separate accounting from their other assets and set up an auxiliary account or subsidiary account.
5. Where the energy services companies engage in projects that are subject to different tax policies, the income from such projects shall be calculated and deducted separately, and the expenses incurred by such enterprises in this period shall be apportioned reasonably.
[Policy Basis]
Article 2, Notice of the Ministry of Finance and the State Taxation Administration on Issues Concerning the Value-added Tax, Business Tax and Enterprise Income Tax Policies for Promoting the Development of the Energy Services Sector (No. 110 [2010] of the Ministry of Finance and the State Taxation Administration)
(II) Tax preferences for heat supply enterprises
10. Exemption of VAT on the heating fee income obtained by heat supply enterprises
[Subjects]
Heat supply enterprises, namely, thermal product manufacturers and thermal product management enterprises. Thermal product manufacturers include enterprises exclusively or partly engaged in heat supply, as well as automatic heating units.
[Preferences]
From January 1, 2019 to the end of the heating period of 2023, heat supply enterprises shall be exempted from the VAT on their heating fee income obtained by supplying heat to resident individuals (hereinafter referred to as “residents”).
[Qualifications]
1. The heating fee income obtained by supplying heat to residents includes the heating fee directly collected from residents by heat supply enterprises, collected from residents through other units and paid by units on behalf of residents.
2. The heating fee income on which VAT is exempted shall be separately accounted for in accordance with Article 16 of the Interim Regulation of the People's Republic of China on Value Added Tax. For thermal product manufacturers supplying heat to residents through thermal product operating enterprises, the VAT exempted shall be calculated according to the proportion of the heating fee income actually obtained from residents by the thermal product operating enterprises in their total heating fee income.
3. The heating period refers to the period from the beginning of heating in the second half of the year to the end of heating in the first half of the next year.
4. The provincial regions enjoying preferential tax policies in China include Beijing, Tianjin, Hebei Province, Shanxi Province, Inner Mongolia Autonomous Region, Liaoning Province, Dalian, Jilin Province, Heilongjiang Province, Shandong Province, Qingdao, Henan Province, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region.
[Policy Basis]
1. Articles 1, 3 and 4, Notice of the Ministry of Finance and the State Taxation Administration on Continuing the Preferential Value-Added Tax, House Property Tax and Urban Land Use Tax Policies for Heat Supply Enterprises (No. 38 [2019] of the Ministry of Finance and the State Taxation Administration)
2. Article 2, Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Implementation Period of Certain Preferential Tax Policies (No. 6 [2021])
11. Exemption of property tax on plants used by heat supply enterprises supplying heat to residents
[Subjects]
Heat supply enterprises, namely, thermal product manufacturers and thermal product management enterprises. Thermal product manufacturers include enterprises exclusively or partly engaged in heat supply, as well as automatic heating units.
[Preferences]
For heat supply enterprises that obtain heating fee by supplying heat to residents, the property tax is exempted on the plants used by such enterprises for supplying heat to residents from January 1, 2019 to December 31, 2023.
[Qualifications]
1. For enterprises exclusively engaged in heat supply, the property tax exempted shall be calculated according to the proportion of the heating fee income obtained from supplying heat to residents in their total heating fee income.
2. For enterprises partly engaged in heat supply, the property tax exempted shall be calculated with different methods depending on whether the plants used for supplying heat can be distinguished from those used for other production and operation activities. If the two types of plants can be easily distinguished, for the plants used for supplying heat, the property tax exempted shall be calculated according to the proportion of the heating fee income obtained from supplying heat to residents in the total heating fee income. If the two types of plants are hard to be distinguished, for all the plants, the property tax and urban land use tax exempted shall be calculated according to the proportion of the heating fee income obtained from supplying heat to residents in their operating income.
3. For automatic heating units, the property tax exempted on the plants used for supplying heat shall be calculated according to the proportion of the building area of supplying heat to residents in the total building area of heat supply.
4. The provincial regions enjoying preferential tax policies in China include Beijing, Tianjin, Hebei Province, Shanxi Province, Inner Mongolia Autonomous Region, Liaoning Province, Dalian, Jilin Province, Heilongjiang Province, Shandong Province, Qingdao, Henan Province, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region.
[Policy Basis]
1. Articles 2, 3 and 4, Notice of the Ministry of Finance and the State Taxation Administration on Continuing the Preferential Value-Added Tax, House Property Tax and Urban Land Use Tax Policies for Heat Supply Enterprises (No. 38 [2019] of the Ministry of Finance and the State Taxation Administration)
2. Article 2, Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Implementation Period of Certain Preferential Tax Policies (No. 6 [2021])
12. Exemption of urban land use tax on the land used by heat supply enterprises supplying heat to residents
[Subjects]
Heat supply enterprises, namely, thermal product manufacturers and thermal product management enterprises. Thermal product manufacturers include enterprises exclusively or partly engaged in heat supply, as well as automatic heating units.
[Preferences]
For heat supply enterprises that obtain heating fee by supplying heat to residents, the urban land use tax is exempted on the land used by such enterprises for supplying heat to residents from January 1, 2019 to December 31, 2023.
[Qualifications]
1. For enterprises exclusively engaged in heat supply, the urban land use tax exempted shall be calculated according to the proportion of the heating fee income obtained from supplying heat to residents in their total heating fee income.
2. For enterprises partly engaged in heat supply, the property tax and urban land use tax exempted shall be calculated with different methods depending on whether the plants and land used for supplying heat can be distinguished from those used for other production and operation activities. If the two types of plants and land can be easily distinguished, for the plants used for supplying heat, the property tax and urban land use tax exempted shall be calculated according to the proportion of the heating fee income obtained from supplying heat to residents in the total heating fee income. If the two types of plants and land are hard to be distinguished, for all the plants, the property tax and urban land use tax exempted shall be calculated according to the proportion of the heating fee income obtained from supplying heat to residents in their operating income.
3. For automatic heating units, the urban land use tax exempted on the land used for supplying heat shall be calculated according to the proportion of the building area of supplying heat to residents in the total building area of heat supply.
4. The provincial regions enjoying preferential tax policies in China include Beijing, Tianjin, Hebei Province, Shanxi Province, Inner Mongolia Autonomous Region, Liaoning Province, Dalian, Jilin Province, Heilongjiang Province, Shandong Province, Qingdao, Henan Province, Shaanxi Province, Gansu Province, Qinghai Province, Ningxia Hui Autonomous Region and Xinjiang Uygur Autonomous Region.
[Policy Basis]
1. Articles 2, 3 and 4, Notice of the Ministry of Finance and the State Taxation Administration on Continuing the Preferential Value-Added Tax, House Property Tax and Urban Land Use Tax Policies for Heat Supply Enterprises (No. 38 [2019] of the Ministry of Finance and the State Taxation Administration)
2. Article 2, Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Implementation Period of Certain Preferential Tax Policies (No. 6 [2021])
(III) Tax preferences for energy-saving and environment-friendly batteries and coatings
13. Exemption of consumption tax on energy-saving and environment-friendly batteries
[Subjects]
Units and individuals engaged in the production, consigned processing, and import of mercury-free primary batteries, nickel-metal hydride storage batteries (also known as “hydrogen-nickel storage batteries” or “nickel-hydrogen storage batteries”), lithium primary batteries, lithium-ion batteries, solar cells, fuel cells and all-vanadium redox flow batteries
[Preferences]
Mercury-free primary batteries, nickel-metal hydride storage batteries (also known as “hydrogen-nickel storage batteries” or “nickel-hydrogen storage batteries”), lithium primary batteries, lithium-ion batteries, solar cells, fuel cells and all-vanadium redox flow batteries shall be exempt from consumption tax.
[Qualifications]
Mercury-free primary batteries, nickel-metal hydride storage batteries (also known as “hydrogen-nickel storage batteries” or “nickel-hydrogen storage batteries”), lithium primary batteries, lithium-ion batteries, solar cells, fuel cells and all-vanadium redox flow batteries.
[Policy Basis]
Paragraph 1, Article 2, Notice of the Ministry of Finance and the State Taxation Administration on the Levy of Consumption Tax on Batteries and Coatings (No. 16 [2015] of the Ministry of Finance and the State Taxation Administration)
14. Exemption of consumption tax on energy-saving and environment-friendly coatings
[Subjects]
Units and individuals engaged in the production, consigned processing, and import of coatings whose content of volatile organic compounds (“VOC”) under construction is 420g/liter or lower
[Preferences]
Coatings whose content of volatile organic compounds (“VOC”) under construction is 420g/liter or lower shall be exempt from consumption tax.
[Qualifications]
Coatings whose content of volatile organic compounds (“VOC”) under construction is 420g/liter or lower.
[Policy Basis]
Paragraph 3, Article 2, Notice of the Ministry of Finance and the State Taxation Administration on the Levy of Consumption Tax on Batteries and Coatings (No. 16 [2015] of the Ministry of Finance and the State Taxation Administration)
(IV) Tax preferences for energy and water conservation
15. Exemption of VAT on drip irrigation products
[Subjects]
VAT taxpayers engaged in the production, sales, wholesale and retail of drip irrigation tapes and pipes
[Preferences]
From July 1, 2007, the taxpayers shall be exempt from VAT on the production, sales, wholesale and retail of drip irrigation tapes and pipes.
[Qualifications]
Drip irrigation tapes and pipes refer to dedicated water tapes and pipes in agricultural water-saving drip irrigation systems, that have orifices made in the manufacturing process or other outflow devices to discharge water in the form of drops or continuous flows. Drip irrigation tapes and pipes are manufactured in accordance with relevant national quality and technical standards, and constitute a drip irrigation system together with PVC pipes (main pipe), PE pipes (auxiliary pipe), socket pipe fittings, filters, and other components.
[Policy Basis]
Article 1, Notice of the Ministry of Finance and the State Taxation Administration on the Exemption of VAT on Drip Irrigation Tape and Drip Irrigation Pipe Products (No. 83 [2007] of the Ministry of Finance and the State Taxation Administration)
16. Regular reduction and exemption of enterprise income tax on the income generated from engaging in qualified energy and water conservation projects
[Subjects]
Enterprises engaging in qualified energy and water conservation projects
[Preferences]
For the income generated from engaging in qualified energy and water conservation projects, the enterprise income tax shall be exempted from the first to third year as of the taxable year in which the first production or operation income of such projects is attributable, and shall be levied by half from the fourth to sixth year since the aforesaid taxable year.
[Qualifications]
Qualified energy and water conservation projects may involve technical transformation for energy conservation and emission reduction, seawater desalination, etc. The specific requirements and scope of those projects are specified in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version).
Where an enterprise engaging in any energy and water conservation project within the scope specified in the Notice of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on Promulgation of the Catalogue for Enterprise Income Tax Preferences for Environmental Protection and Energy and Water Saving Programs (Trial) (No. 166 [2009] of the Ministry of Finance and the State Taxation Administration) and the Notice by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission of Including Power Generation with Landfill Biogas in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (for Trial Implementation) (No. 131 [2016] of the Ministry of Finance and the State Taxation Administration) has entered the preferential period before December 31, 2021, it may continue to enjoy relevant preferences according to the former policies until the expiration of the preferential period. Where an enterprise engaging in any energy and water conservation project within the scope specified in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version) has obtained its first production and operation income before December 31, 2020, it may enjoy preferential policies during the remaining period until the expiration of the preferential period.
[Policy Basis]
1. Paragraph 3, Article 27, Enterprise Income Tax Law of the People's Republic of China
2. Article 88, Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
3. Notice of the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission on Promulgation of the Catalogue for Enterprise Income Tax Preferences for Environmental Protection and Energy and Water Saving Programs (Trial) (No. 166 [2009] of the Ministry of Finance and the State Taxation Administration)
4. Notice by the Ministry of Finance, the State Taxation Administration and the National Development and Reform Commission of Including Power Generation with Landfill Biogas in the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (for Trial Implementation) (No. 131 [2016] of the Ministry of Finance and the State Taxation Administration)
5. Article 1 and Article 2, Announcement of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Ecology and Environment on Issuing the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version) and the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences (2021 Version) (No. 36 [2021])
17. Deduction of the amount of an enterprise's investment in the purchase of special equipment for energy and water conservation from enterprise income tax amount at a certain rate
[Subjects]
Enterprises purchasing special equipment for energy and water conservation
[Preferences]
If an enterprise purchases and actually uses the special equipment of energy and water conservation, as prescribed in the Catalogues of the Special Equipment for Energy and Water Conservation Eligible for Enterprise Income Tax Preferences, 10
of the money invested on the aforesaid equipment may be counteracted from the enterprise's enterprise taxable income in the current year when the aforesaid equipment is purchased; and if the enterprise taxable income is not sufficient for counteraction, the remaining part of the aforesaid 10% of the money invested may be counteracted in the following five taxpaying years.
[Qualifications]
The enterprise actually purchases and uses the equipment specified in the Catalogues of the Special Equipment for Energy and Water Conservation Eligible for Enterprise Income Tax Preferences. If the enterprise transfers or leases the equipment mentioned above within 5 years after purchasing the aforesaid equipment, it shall no longer enjoy the preferential enterprise income tax, and shall repay the amount of enterprise income tax that has been counteracted.
[Policy Basis]
1. Article 34, Enterprise Income Tax Law of the People's Republic of China
2. Article 100, Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
3. Notice of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and Other Departments on Issuing the Catalogues of the Special Equipment for Energy and Water Conservation and Environmental Protection Eligible for Enterprise Income Tax Preferences (2017 Version) (No. 71 [2017] of the Ministry of Finance and the State Taxation Administration)
(V) Tax preferences for new-energy vehicles and vessels
18. Exemption of vehicle and vessel tax on new-energy vehicles and vessels
[Subjects]
Taxpayers of vehicle and vessel tax on new-energy vehicles and vessels
[Preferences]
The vehicle and vessel tax on new-energy vehicles and vessels shall be exempted.
[Qualifications]
1. New-energy vehicles on which the vehicle and vessel tax may be exempted mean pure electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, or fuel battery commercial vehicles.
2. New-energy vehicles on which the vehicle and vessel tax may be exempted shall also satisfy the following standards:
（1） They shall be purely electric commercial vehicles, plug-in (including extended-range) hybrid vehicles, or fuel battery commercial vehicles sold within the territory of China with permission;
（2） They shall satisfy the technical standards of new-energy vehicles. Please see Annex 4 Technical Standards for New-energy Vehicle Products of the Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration) for the specific standards. They shall also satisfy relevant technical requirements adjusted for plug-in hybrid (including extended-range) passenger vehicles in Document No. 74 [2018] of the Ministry of Finance and the State Taxation Administration as specified in the Announcement of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China on Adjusting the Technical Requirements for Energy-Saving and New Energy Vehicle Products Eligible for Vehicle and Vessel Tax Preferences (Announcement No. 2 [2022] of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China);
（3） They shall pass the new energy vehicle standards in the special testing for new-energy vehicles. Please see Annex 5 Catalogue of Special Testing Standards for New-energy Vehicle Products of the Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration) for the specific standards.
（4） New-energy vehicle manufacturers or dealers of imported new-energy vehicles shall satisfy relevant requirements in terms of product quality assurance, product consistency, after-sales service, safety monitoring, and recycling of traction batteries. Please see Annex 6 Requirements for New-energy Vehicle Enterprises of the Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration) for the specific standards.
3. New-energy vessels on which vehicle and vessel tax may be exempted shall satisfy the following standards:
The main propulsion unit of the vessel shall be a purely natural gas engine, in which energy is released through the combustion of diesel and the percentage of heat of combustion is no higher than 5
of the total heating value.
4. Energy-saving and new-energy vehicles satisfying the aforesaid standards shall be publicized jointly by the Ministry of Industry and Information Technology and the State Taxation Administration by issuing updated versions of the Catalogue of the Models of Energy-saving and New-energy Vehicles Enjoying Vehicle and Vessel Tax Reduction and Exemption.
[Policy Basis]
1. Article 4, Vehicle and Vessel Tax Law of the People's Republic of China
2. Article 2, Annexes 4, 5 and 6, Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration)
3. Announcement of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China on Adjusting the Technical Requirements for Energy-Saving and New Energy Vehicle Products Eligible for Vehicle and Vessel Tax Preferences (Announcement No. 2 [2022] of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China)
19. Reduction of vehicle and vessel tax by half on energy-saving vehicles
[Subjects]
Taxpayers of vehicle and vessel tax on energy-saving vehicles
[Preferences]
The vehicle and vessel tax on energy-saving vehicles shall be reduced by half.
[Qualifications]
1. Energy-saving passenger vehicles on which vehicle and vessel tax may be reduced by half shall concurrently satisfy the following standards:
（1） They shall be passenger vehicles sold within the territory of China with permission, which are powered by gasoline or diesel fuel, with 1.6L or lower displacement (including non-plug-in hybrid passenger vehicles, and passenger vehicles powered by dual fuel or bi-fuel);
（2） The combined fuel consumption shall satisfy the standards. Please see Annex 1 Fuel Consumption Limits for Energy-saving Passenger Vehicles Under Comprehensive Conditions of the Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration) for the specific standards. They shall also satisfy relevant requirements in Annex 1 Fuel Consumption Limits for Energy-saving Passenger Vehicles Under Comprehensive Conditions of the Announcement of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China on Adjusting the Technical Requirements for Energy-Saving and New Energy Vehicle Products Eligible for Vehicle and Vessel Tax Preferences (Announcement No. 2 [2022] of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China).
2. Energy-saving commercial vehicles on which vehicle and vessel tax may be reduced by half shall concurrently satisfy the following standards:
（1） They shall be light-duty and heavy-duty commercial vehicles sold within the territory of China with permission, which are powered by natural gas, gasoline or diesel fuel, (including non-plug-in hybrid commercial vehicles, light-duty and heavy-duty commercial vehicles powered by dual fuel or bi-fuel);
（2） Combined fuel consumption of light-duty and heavy-duty commercial vehicles powered by gasoline or diesel fuel shall satisfy the standards. Please see Annex 2 Fuel Consumption Limits for Energy-saving Light-duty Commercial Vehicles Under Comprehensive Conditions and Annex 3 Fuel Consumption Limits for Energy-saving Heavy-duty Commercial Vehicles Under Comprehensive Conditions of the Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration) for the specific standards. They shall also satisfy relevant requirements in Annex 2 Fuel Consumption Limits for Energy-saving Light-duty Commercial Vehicles Under Comprehensive Conditions and Annex 3 Fuel Consumption Limits for Energy-saving Heavy-duty Commercial Vehicles Under Comprehensive Conditions of the Announcement of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China on Adjusting the Technical Requirements for Energy-Saving and New Energy Vehicle Products Eligible for Vehicle and Vessel Tax Preferences (Announcement No. 2 [2022] of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China).
[Policy Basis]
1. Article 4, Vehicle and Vessel Tax Law of the People's Republic of China
2. Article 1, Annexes 1, 2 and 3, Notice of the Ministry of Finance, the State Taxation Administration, the Ministry of Industry and Information, and the Ministry of Transport on Preferential Vehicle and Vessel Tax Policies for Energy-saving and New-energy Vehicles and Vessels (No. 74 [2018] of the Ministry of Finance and the State Taxation Administration)
3. Announcement of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China on Adjusting the Technical Requirements for Energy-Saving and New Energy Vehicle Products Eligible for Vehicle and Vessel Tax Preferences (Announcement No. 2 [2022] of the Ministry of Industry and Information Technology, the Ministry of Finance and the State Taxation Administration of the People's Republic of China)
20. Exemption of vehicle acquisition tax on new-energy automobiles
[Subjects]
Taxpayers of vehicle acquisition tax on new-energy automobiles
[Preferences]
The new-energy automobiles purchased shall be exempt from vehicle acquisition tax between January 1, 2021 and December 31, 2022.
[Qualifications]
The new-energy automobiles exempt from vehicle acquisition tax shall be subject to administration through the Catalogue of Models of New-Energy Automobiles Exempt from Vehicle Acquisition Tax (hereinafter referred to as the “Catalogue”) issued by the Ministry of Industry and Information Technology and the State Taxation Administration. From the date of issuance of the Catalogue, the new-energy automobiles purchased and listed in the Catalogue shall be exempt from vehicle acquisition tax. The time of purchase shall be the dates indicated on the uniform invoices (or valid certificates) for sale of motor vehicles.
[Policy Basis]
Announcement of the Ministry of Finance, the State Taxation Administration and the Ministry of Industry and Information Technology on Relevant Policies for the Exemption of Vehicle Acquisition Tax on New-energy Automobiles (No. 21 [2020])
(VI) Tax preferences for saving water resources
21. Exemption of water resource tax on the use of reclaimed wastewater
[Subjects]
Units and individuals using reclaimed wastewater
[Preferences]
The water resource tax shall be exempted from the use of reclaimed wastewater.
[Qualifications]
1. The taxpayer uses reclaimed wastewater.
2. The provincial regions enjoying preferential tax policies in China include Beijing, Tianjin, Shanxi Province, Inner Mongolia Autonomous Region, Henan Province, Shandong Province, Sichuan Province, Shaanxi Province and Ningxia Hui Autonomous Region.
[Policy Basis]
Paragraph 2, Article 15, Annex, Notice of the Ministry of Finance, the State Taxation Administration and the Ministry of Water Resources on Issuing the Interim Measures for the Pilot Reform of Water Resource Tax (No. 80 [2017] of the Ministry of Finance and the State Taxation Administration)
22. Exemption of water resource tax on the use of water for pumped-storage power generation
[Subjects]
Units and individuals using water for pumped-storage power generation
[Preferences]
The water resource tax shall be exempted from the use of water for pumped-storage power generation.
[Qualifications]
1. The taxpayer uses water for pumped-storage power generation.
2. The provincial regions enjoying preferential tax policies in China include Beijing, Tianjin, Shanxi Province, Inner Mongolia Autonomous Region, Henan Province, Shandong Province, Sichuan Province, Shaanxi Province and Ningxia Hui Autonomous Region.
[Policy Basis]
Paragraph 4, Article 15, Annex, Notice of the Ministry of Finance, the State Taxation Administration and the Ministry of Water Resources on Issuing the Interim Measures for the Pilot Reform of Water Resource Tax (No. 80 [2017] of the Ministry of Finance and the State Taxation Administration)
23. Exemption of water resource tax on the drainage used for oil production that is reinjected in closed pipelines after separation and purification
[Subjects]
Units and individuals using the drainage used for oil production that is reinjected in closed pipelines after separation and purification
[Preferences]
The water resource tax shall be exempted on the drainage used for oil production that is reinjected in closed pipelines after separation and purification.
[Qualifications]
1. The drainage used for oil production is reinjected in closed pipelines after separation and purification.
2. The provincial regions enjoying preferential tax policies in China include Beijing, Tianjin, Shanxi Province, Inner Mongolia Autonomous Region, Henan Province, Shandong Province, Sichuan Province, Shaanxi Province and Ningxia Hui Autonomous Region.
[Policy Basis]
Paragraph 5, Article 15, Annex, Notice of the Ministry of Finance, the State Taxation Administration and the Ministry of Water Resources on Issuing the Interim Measures for the Pilot Reform of Water Resource Tax (No. 80 [2017] of the Ministry of Finance and the State Taxation Administration)
(VII) Tax preferences for reducing pollutant discharge
24. Exemption of environmental protection tax on the discharge of taxable pollutants in agricultural production
[Subjects]
Taxpayers of environmental protection tax that discharge taxable pollutants in agricultural protection
[Preferences]
The environmental protection tax shall be temporarily exempted from the discharge of taxable pollutants in agricultural production (excluding large-scale farming).
[Qualifications]
The taxpayer discharges taxable pollutants in agricultural production (excluding large-scale farming).
[Policy Basis]
Paragraph 1, Article 12, Environmental Protection Tax Law of the People's Republic of China
25. Exemption of environmental protection tax on the discharge of pollutants in urban and rural sewage centralized treatment and domestic garbage centralized treatment places established according to law
[Subjects]
Urban and rural sewage centralized treatment and domestic garbage centralized treatment places were established according to law
[Preferences]
The environmental protection tax shall be temporarily exempted on the discharge of taxable pollutants in urban and rural sewage centralized treatment and domestic garbage centralized treatment places established according to law, provided that the taxable pollutants shall not exceed the discharge standards stipulated by the national and local governments.
[Qualifications]
1. Urban and rural sewage centralized treatment and domestic garbage centralized treatment places established according to law discharge taxable pollutants.
2. The taxable pollutants shall not exceed the discharge standards stipulated by the national and local governments.
[Policy Basis]
Paragraph 3, Article 12, Environmental Protection Tax Law of the People's Republic of China
26. Reduction of environmental protection tax on the emission of taxable atmospheric pollutants or water pollutants less than national and local pollutant discharge standards
[Subjects]
Taxpayers of environmental protection tax whose emission of taxable atmospheric pollutants or water pollutants is less than 50% of the national and local pollutant discharge standards in terms of concentration
Taxpayers of environmental protection tax whose emission of taxable atmospheric pollutants or water pollutants is less than 30% of the national and local pollutant discharge standards
[Preferences]
If the taxpayer's emission of taxable atmospheric pollutants or water pollutants is less than 30% of the national and local pollutant discharge standards in terms of concentration, the environmental protection tax shall be levied at 75%.
If the taxpayer's emission of taxable atmospheric pollutants or water pollutants is less than 50% of the national and local pollutant discharge standards in terms of concentration, the environmental protection tax shall be levied by half.
[Qualifications]
The taxpayer's emission of taxable atmospheric pollutants or water pollutants is less than 30% of the national and local pollutant discharge standards in terms of concentration.
The taxpayer's emission of taxable atmospheric pollutants or water pollutants is less than 50% of the national and local pollutant discharge standards in terms of concentration.
[Policy Basis]
Article 13, Environmental Protection Tax Law of the People's Republic of China
27. Immediate refund upon payment of VAT on new-type wall materials
[Subjects]
Taxpayers selling self-produced new-type wall materials as listed in the Catalogue of New-Type Wall Materials Subject to the VAT Policy of Immediate Refund upon Payment
[Preferences]
Taxpayers selling self-produced new-type wall materials as listed in the Catalogue of New-Type Wall Materials Subject to the VAT Policy of Immediate Refund upon Payment as annexed to this Notice shall be subject to the VAT policy of immediately refunding 50% upon payment.
[Qualifications]
When applying for enjoying the preferential VAT policy as prescribed in this Notice, a taxpayer selling self-produced new-type wall materials listed in the Catalogue of New-Type Wall Materials Subject to the VAT Policy of Immediate Refund upon Payment shall meet all of the following conditions:
1. Selling self-produced new-type wall materials other than those prohibited or restricted in the Catalogue for the Guiding Industrial Restructuring issued by the National Development and Reform Commission.
2. Selling self-produced new-type wall materials other than those with “high pollution and high environmental risks” or made through processes causing serious pollution as set forth in the Comprehensive Catalogue for Environmental Protection issued by the Ministry of Environmental Protection.
3. Not rated Grade C or D by the tax authority in terms of tax credit.
[Policy Basis]
Notice of the Ministry of Finance and the State Taxation Administration on Value-Added Tax Policy for New-Type Wall Materials (No. 73 [2015] of the Ministry of Finance and the State Taxation Administration)
28. Immediate refund upon payment of VAT on products and labor services involving the comprehensive utilization of resources
[Subjects]
VAT taxpayers engaging in the sale of products involving the comprehensive utilization of resources made by themselves and the provision of labor services involving the comprehensive utilization of resources
[Preferences]
From March 1, 2022, a general VAT taxpayer engaging in the sale of products involving the comprehensive utilization of resources made by themselves and the provision of labor services involving the comprehensive utilization of resources may enjoy the policy of immediate refund of VAT upon payment.
[Qualifications]
1. The names of the comprehensively-utilized resources, the names of the products and services involving the comprehensive utilization of resources, technical standards and related conditions, and the rates of tax refunds, among others, shall be governed by the relevant provisions of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version) (hereinafter referred to as the “Catalogue”).
2. A taxpayer engaging in a project of comprehensive utilization of resources listed in the Catalogue shall meet all of the following conditions when applying for enjoying the policy of immediate refund of VAT upon payment as prescribed in this Announcement:
（1） For the renewable resources acquired by the taxpayer inside China, the VAT invoice shall be obtained from the seller as required; and where the tax exemption policy applies, the plain VAT invoice shall be obtained from the sellers as required. If the seller is an entity that cannot apply for invoices in accordance with laws and regulations or a natural person engaging in small-amount sporadic business, the receipt voucher issued by the seller or the internal certificate of the purchaser, or the invoice issued by the tax authority on behalf of the taxpayer shall be obtained. The “small-amount sporadic business” as mentioned in this paragraph means the business under which the sales volume of a natural person engaging in the business operation of taxable items does not exceed the threshold as determined on a transaction-by-transaction basis.
For the renewable resources acquired by the taxpayer outside China, the Special Bill of Payment of Import VAT shall be obtained as required, or the receipt voucher with the nature of the invoice and related tax payment certificates shall be obtained from the seller.
（2） The taxpayer shall set up a ledger to acquire renewable resources for future reference. The ledger shall contain the following information: the name of the unit supplying renewable resources, the name and ID number of the individual supplying renewable resources, the names, quantity, prices and payment methods of renewable resources, and whether a VAT invoice or a certificate conforming to relevant regulations has been obtained, etc. Such a ledger is not required if the aforesaid information is contained in the taxpayer’s existing account book or system.
（3） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those prohibited or restricted in the Catalogue for the Guiding Industrial Restructuring as issued by the National Development and Reform Commission.
（4） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those with “high pollution and high environmental risks” or made through processes that cause serious pollution as set forth in the Comprehensive Catalogue for Environmental Protection issued by the Ministry of Environmental Protection. The products with “high pollution and high environmental risks” refer to those products marked with “GHW/GHF” listed in the Comprehensive Catalogue for Environmental Protection, except that the products involving comprehensive utilization of resources produced and sold by taxpayers meet the technology and conditions specified in the “GHW/GHF” exception clause.
（5） The taxpayer shall have obtained a Hazardous Waste Business License issued by the department of ecology and environment at or above the provincial level, the scope of which shall include the use of hazardous wastes, if the comprehensively-utilized resources are hazardous wastes included in the List of the State for Hazardous Wastes as issued by the Ministry of Ecology and Environment.
（6） The taxpayer shall not be rated Grade C or D by the tax authority in terms of tax credit rating.
（7） When a taxpayer applies to enjoy the policy of immediate refund of VAT upon payment as prescribed in this Announcement, the following situations shall not occur in the 6 months before the taxable period of the VAT for which a refund is applied (including the taxable period):
① The taxpayer is subject to administrative punishment for violation of laws and regulations regarding ecological environment protection (except for warning, criticism in a circulated notice, or a single fine of 100,000 yuan or less, confiscation of illegal income, and confiscation of illegal property).
② The taxpayer is subject to punishment by the tax authorities for violation of tax laws and regulations (except for a single fine of 100,000 yuan or less), or committing the acts of fraudulently obtaining export tax rebates or issuing false invoices.
3. The provisions in the Notice of the Ministry of Finance and the State Taxation Administration on Issuing the Catalogue of Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (No. 78 [2015] of the Ministry of Finance and the State Taxation Administration), and the part “Technical Standards and Relevant Conditions” in the Announcement of the Ministry of Finance and the State Taxation Administration on the Value-Added Tax Policies for the Comprehensive Utilization of Resources (No. 90 [2019]) are valid until December 31, 2022.
[Policy Basis]
1. Annex “Technical Standards and Relevant Conditions”, Notice of the Ministry of Finance and the State Taxation Administration on Issuing the Catalogue of Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (No. 78 [2015] of the Ministry of Finance and the State Taxation Administration)
2. “Technical Standards and Relevant Conditions”, Announcement of the Ministry of Finance and the State Taxation Administration on the Value-Added Tax Policies for the Comprehensive Utilization of Resources (No. 90 [2019])
3. Article 3, Article 7 and Annex, Announcement of the Ministry of Finance and the State Taxation Administration on Improving the Value-Added Tax Policies for the Comprehensive Utilization of Resources (No. 40 [2021])
29. Downsizing of the income generated from producing products by way of comprehensive utilization of resources in the calculation of the amount of taxable income
[Subjects]
Enterprises that produce products that are not restricted or prohibited by the state and conform to relevant national and industrial standards by using the resources specified in the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences as the main raw materials.
[Preferences]
The income generated by enterprises from producing products that are not restricted or prohibited by the state and conform to relevant national and industrial standards by using the resources specified in the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences as the main raw materials shall be counted in the total income at 90
.
[Qualifications]
1. Relevant enterprises shall use the resources specified in the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences as the main raw materials.
2. The proportion of raw materials in production materials shall not be lower than the standard specified in the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences.
3. The products produced are not restricted or prohibited by the state and conform to relevant national and industrial standards.
[Policy Basis]
1. Article 33, Enterprise Income Tax Law of the People's Republic of China
2. Article 99, Regulation on the Implementation of the Enterprise Income Tax Law of the People's Republic of China
3. Annex 2, Announcement of the Ministry of Finance, the State Taxation Administration, the National Development and Reform Commission and the Ministry of Ecology and Environment on Issuing the Catalogue of Environmental Protection and Energy and Water Conservation Projects Eligible for Enterprise Income Tax Preferences (2021 Version) and the Catalogue of Resources for Comprehensive Utilization Eligible for Enterprise Income Tax Preferences (2021 Version) (No. 36 [2021] )
30. Exemption of consumption tax on pure biodiesel made from waste animal fat or vegetable oil
[Subjects]
Taxpayers of consumption tax that produce pure biodiesel from waste animal fat and vegetable oil
[Preferences]
Pure biodiesel made from animal fat and vegetable oil shall be exempt from consumption tax.
[Qualifications]
1. Pure biodiesel that meets all of the following conditions shall be exempt from consumption tax:
(1) The proportion of waste animal fat and vegetable oil in production raw materials shall not be less than 70
.
(2) The pure biodiesel produced conforms to the national standard Biodiesel Blend Stock (BD100) for Diesel Engine Fuels.
2. The scope of “waste animal fat and vegetable oil” includes:
（1） Animal fat and vegetable oil not available for human consumption that is produced by catering units, food processing units and households, mainly including swill oil, waste frying oil, gutter oil, and condensate oil from range hoods.
（2） Oil and fat are extracted from the waste produced in animal slaughtering and leather processing, and non-edible oil and fat are produced in the meat processing process.
（3） Fatty acids, glycerides and mixtures containing a small amount of impurities are produced in the edible oil refining process, mainly including acidic oil, fatty acids, palm acidified oil, palm oil fatty acids, clay oil, deodorizer distillate, etc.
（4） Oil and fat produced during oil and fat processing or storage process that do not meet edible standards.
[Policy Basis]
1. Notice of the Ministry of Finance and the State Taxation Administration on Consumption Tax Exemption regarding Pure Biodiesel Made from Waste Animal Fat or Vegetable Oil (No.118 [2010] of the Ministry of Finance and the State Taxation Administration)
2. Notice of the Ministry of Finance and the State Taxation Administration on Clarifying the Applicable Scope of Exemption of Consumption Tax for the Production of Pure Biodiesel from Waste Animal and Vegetable Oils (No. 46 [2011] of the Ministry of Finance and the State Taxation Administration)
31. Exemption of consumption tax on industrial oil produced by using waste mineral oil
[Subjects]
Taxpayers of consumption tax that produce lubricating base oil, gasoline, diesel and other industrial oil with recycled waste mineral oil as raw materials
[Preferences]
From November 1, 2013 to October 31, 2023, the lubricating base oil, gasoline, diesel and other industrial oil that are produced with recycled waste mineral oil as raw materials shall be exempt from the consumption tax.
[Qualifications]
1. “Waste mineral oil” means waste lubricating oil replaced from mechanical equipment in the industrial manufacturing field and such transport equipment as automobiles and vessels due to the loss or deterioration of their functions after use.
2. The lubricating base oil, gasoline, diesel and other industrial oil produced by taxpayers by using waste mineral oil shall be exempt from the consumption tax, and the following conditions shall be met at the same time:
（1） A taxpayer must obtain a Permit for the (Comprehensive) Business Operation of Hazardous Wastes issued by the environmental protection department at or above the provincial level, and the approved scope of production and business operation of such permit shall indicate the words to the effect of “utilization” or “comprehensive business operation”. A taxpayer of which the scope of production and business operation is “comprehensive business operation” shall, at the same time, provide the materials issued by the environmental protection department issuing the Permit for the (Comprehensive) Business Operation of Hazardous Wastes, which can prove that “utilization” is covered by its scope of production and business operation.
When applying for record filing of exemption from consumption tax, the taxpayer shall submit the pollutant discharge standards that it is required to comply with and as determined by the environmental protection department in the place where the pollutants are discharged, as well as the evidence issued by the environmental protection department within 6 months ago in the place where the pollutants are discharged to prove compliance of the taxpayer’s pollutant discharge with the aforesaid standards. For the waste mineral oil recovered by the taxpayer, there should be a Hazardous Waste Transfer Coupon to show its name, characteristics, quantity, acceptance date and other items.
（2） The proportion of the weight of waste mineral oil in production raw materials must be at least 90
. Finished products must contain lubricant base oil, which shall not be less than 0.65 tons for each ton of waste mineral oil.
（3） Products made from waste mineral oil and those made from other raw materials shall be accounted for separately.
[Policy Basis]
1. Notice of the Ministry of Finance and the State Taxation Administration on the Exemption of Consumption Tax on Oil Re-refined from Waste Mineral Oil (No. 105 [2013] of the Ministry of Finance and the State Taxation Administration)
2. Notice by the Ministry of Finance and the State Taxation Administration of Extending the Implementation Period of the Consumption Tax Exemption Policy for Oil Products Refined from Waste Mineral Oil (No. 144 [2018] of the Ministry of Finance and the State Taxation Administration)
32. Exemption of deed tax on the use of unclaimed mountains, land and mudflats for agriculture, forestry, animal husbandry and fishery
[Subjects]
Taxpayers of deed tax that accept land use rights of unclaimed mountains, land and mudflats for agriculture, forestry, animal husbandry and fishery
[Preferences]
Deed tax shall be exempted on the acceptance of land use rights of unclaimed mountains, land and mudflats for agriculture, forestry, animal husbandry and fishery.
[Qualifications]
The taxpayers accept land use rights of unclaimed mountains, land and mudflats for agriculture, forestry, animal husbandry and fishery.
[Policy Basis]
Paragraph 3, Article 3, Deed Tax Law of the People's Republic of China
33. Exemption of environmental protection tax on solid wastes comprehensively utilized
[Subjects]
Taxpayers of environmental protection tax that comprehensively utilize solid wastes according to national and local environmental protection standards
[Preferences]
Environmental protection tax shall be exempted on the solid wastes that are comprehensively utilized by taxpayers according to national and local environmental protection standards.
[Qualifications]
The taxpayer complies with the Standards for the Evaluation and Management of Comprehensive Utilization of Industrial Solid Wastes issued by the Ministry of Industry and Information Technology.
See the Interim Measures for the Evaluation and Management of Comprehensive Utilization of Industrial Solid Waste Resources, and the Catalogue of Products Involving the Comprehensive Utilization of National Industrial Solid Waste Resources (issued in the Announcement No. 26 [2018] of the Ministry of Industry and Information Technology) for reference.
[Policy Basis]
1. Paragraph 4, Article 12, Environmental Protection Tax Law of the People's Republic of China
2. Article 3, Notice by the Ministry of Finance, the State Taxation Administration and the Ministry of Ecology and Environment of Issues Concerning Environmental Protection Tax (No. 23 [2018] of the Ministry of Finance and the State Taxation Administration)
3. Announcement No. 26 [2018] of the Ministry of Industry and Information Technology of the People's Republic of China (Announcement No. 26 [2018] of the Ministry of Industry and Information Technology)
(II) Tax preferences for sewage treatment
34. Immediate refund upon payment of VAT or exemption of VAT on the reclaimed water produced by sewage treatment plants
[Subjects]
General VAT taxpayers that engage in projects involving “effluent from sewage treatment plants, industrial drainage (mine water), domestic sewage, landfill leachate, etc.” specified in Item 2.15 of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version)
[Preferences]
A taxpayer may enjoy the policy of immediate refund of VAT upon payment as specified in Announcement No. 40 [2021] of the Ministry of Finance and the State Taxation Administration, or enjoy the policy of VAT exemption if they engage in the production of reclaimed water by using the “effluent from sewage treatment plants, industrial drainage (mine water), domestic sewage, landfill leachate, etc.” specified in Item 2.15 of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version).
[Qualifications]
1. The names of the comprehensively-utilized resources, the names of the products and services involving the comprehensive utilization of resources, technical standards and related conditions, and the rates of tax refunds, among others, shall be governed by the relevant provisions of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version) (hereinafter referred to as the “Catalogue”).
2. A taxpayer engaging in a project of comprehensive utilization of resources listed in the Catalogue shall meet all of the following conditions when applying for enjoying the policy of immediate refund of VAT upon payment as prescribed in this Announcement:
（1） For the renewable resources acquired by the taxpayer inside China, the VAT invoice shall be obtained from the seller as required; and where the tax exemption policy applies, the plain VAT invoice shall be obtained from the seller as required. If the seller is an entity that cannot apply for invoices in accordance with laws and regulations or a natural person engaging in small-amount sporadic business, the receipt voucher issued by the seller or the internal certificate of the purchaser, or the invoice issued by the tax authority on behalf of the taxpayer shall be obtained. The “small-amount sporadic business” as mentioned in this paragraph means the business under which the sales volume of a natural person engaging in the business operation of taxable items does not exceed the threshold as determined on a transaction-by-transaction basis.
For the renewable resources acquired by the taxpayer outside China, the Special Bill of Payment of Import VAT shall be obtained as required, or the receipt voucher with the nature of invoice and related tax payment certificate shall be obtained from the seller.
（2） The taxpayer shall set up a ledger for the acquisition of renewable resources for future reference. The ledger shall contain the following information: the name of the unit supplying renewable resources, the name and ID number of the individual supplying renewable resources, the names, quantity, prices and payment methods of renewable resources, and whether a VAT invoice or a certificate conforming to relevant regulations has been obtained, etc. Such a ledger is not required if the aforesaid information is contained in the taxpayer’s existing account book or system.
（3） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those prohibited or restricted in the Catalogue for the Guiding Industrial Restructuring as issued by the National Development and Reform Commission.
（4） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those with “high pollution and high environmental risks” or made through processes that cause serious pollution as set forth in the Comprehensive Catalogue for Environmental Protection issued by the Ministry of Environmental Protection. The products with “high pollution and high environmental risks” refer to those products marked with “GHW/GHF” listed in the Comprehensive Catalogue for Environmental Protection, except that the products involving comprehensive utilization of resources produced and sold by taxpayers meet the technology and conditions specified in the “GHW/GHF” exception clause.
（5） The taxpayer shall have obtained a Hazardous Waste Business License issued by the department of ecology and environment at or above the provincial level, the scope of which shall include the use of hazardous wastes, if the comprehensively-utilized resources are hazardous wastes included in the List of the State for Hazardous Wastes as issued by the Ministry of Ecology and Environment.
（6） The taxpayer shall not be rated Grade C or D by the tax authority in terms of tax credit rating.
（7） When applying to enjoy the policy of immediate refund of VAT upon payment as prescribed in this Announcement, the taxpayer shall not have the following behaviors in the 6 months before the taxable period of the VAT to which a refund is applied (including the taxable period):
① The taxpayer is subject to administrative punishment for violation of laws and regulations on ecological environment protection (except for warning, criticism in a circulated notice, or a single fine of 100,000 yuan or less (the same below) , confiscation of illegal income, and confiscation of illegal property).
② The taxpayer is subject to punishment by the tax authorities for violation of tax laws and regulations (except for a single fine of 100,000 yuan or less), or committing the acts of fraudulently obtaining export tax rebates or issuing false invoices.
[Policy Basis]
Article 3, Article 4 and Annex, Announcement of the Ministry of Finance and the State Taxation Administration on Improving the Value-Added Tax Policies for the Comprehensive Utilization of Resources (No. 40 [2021])
35. Immediate refund upon payment of VAT or exemption of VAT on labor services of garbage disposal and sludge treatment
[Subjects]
General VAT taxpayers that engage in the projects involving “labor services of garbage disposal and sludge treatment” specified in Item 5.1 of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version)
[Preferences]
A taxpayer may enjoy the policy of immediate refund of VAT upon payment as specified in Announcement No. 40 [2021] of the Ministry of Finance and the State Taxation Administration, or enjoy the policy of VAT exemption if they engage in projects involving “labor services of garbage disposal and sludge treatment” specified in Item 5.1 of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version).
[Qualifications]
1. The names of the comprehensively-utilized resources, the names of the products and services involving the comprehensive utilization of resources, technical standards and related conditions, and the rates of tax refunds, among others, shall be governed by the relevant provisions of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version) (hereinafter referred to as the “Catalogue”).
2. A taxpayer engaging in a project of comprehensive utilization of resources listed in the Catalogue shall meet all of the following conditions when applying for enjoying the policy of immediate refund of VAT upon payment as prescribed in this Announcement:
（1） For the renewable resources acquired by the taxpayer inside China, the VAT invoice shall be obtained from the seller as required; and where the tax exemption policy applies, the plain VAT invoice shall be obtained from the sellers as required. If the seller is an entity that cannot apply for invoices in accordance with laws and regulations or a natural person engaging in small-amount sporadic business, the receipt voucher issued by the seller or the internal certificate of the purchaser, or the invoice issued by the tax authority on behalf of the taxpayer shall be obtained. The “small-amount sporadic business” as mentioned in this paragraph means the business under which the sales volume of a natural person engaging in the business operation of taxable items does not exceed the threshold as determined on a transaction-by-transaction basis.
For the renewable resources acquired by the taxpayer outside China, the Special Bill of Payment of Import VAT shall be obtained as required, or the receipt voucher with the nature of the invoice and related tax payment certificate shall be obtained from the seller.
（2） The taxpayer shall set up a ledger to acquire renewable resources for future reference. The ledger shall contain the following information: the name of the unit supplying renewable resources, the name and ID number of the individual supplying renewable resources, the names, quantity, prices and payment methods of renewable resources, and whether a VAT invoice or a certificate conforming to relevant regulations has been obtained, etc. Such a ledger is not required if the aforesaid information is contained in the taxpayer’s existing account book or system.
（3） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those prohibited or restricted in the Catalogue for the Guiding Industrial Restructuring as issued by the National Development and Reform Commission.
（4） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those with “high pollution and high environmental risks” or made through processes that cause serious pollution as set forth in the Comprehensive Catalogue for Environmental Protection issued by the Ministry of Ecology and Environment. The products with “high pollution and high environmental risks” refer to those products marked with “GHW/GHF” listed in the Comprehensive Catalogue for Environmental Protection, except that the products involving comprehensive utilization of resources produced and sold by taxpayers meet the technology and conditions specified in the “GHW/GHF” exception clause.
（5） The taxpayer shall have obtained a Hazardous Waste Business License issued by the department of ecology and environment at or above the provincial level, the scope of which shall include the use of hazardous wastes, if the comprehensively-utilized resources are hazardous wastes included in the List of the State for Hazardous Wastes as issued by the Ministry of Ecology and Environment.
（6） The taxpayer shall not be rated Grade C or D by the tax authority in terms of tax credit rating.
（7） When applying to enjoy the policy of immediate refund of VAT upon payment as prescribed in this Announcement, the taxpayer shall not have the following behaviors in the 6 months before the taxable period of the VAT for which a refund is applied (including the taxable period):
① The taxpayer is subject to administrative punishment for violation of laws and regulations on ecological environment protection (except for warning, criticism in a circulated notice, or a single fine of 100,000 yuan or less (the same below) , confiscation of illegal income, and confiscation of illegal property).
② The taxpayer is subject to punishment by the tax authorities for violation of tax laws and regulations (except for a single fine of 100,000 yuan or less), or committing the acts of fraudulently obtaining export tax rebates or issuing false invoices.
[Policy Basis]
Article 3, Article 4 and Annex, Announcement of the Ministry of Finance and the State Taxation Administration on Improving the Value-Added Tax Policies for the Comprehensive Utilization of Resources (No. 40 [2021])
36. Immediate refund upon payment of VAT or exemption of VAT on labor services of sewage treatment
[Subjects]
General VAT taxpayers that engage in the projects involving “labor services of sewage treatment” specified in Item 5.2 of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version)
[Preferences]
A taxpayer may enjoy the policy of immediate refund of VAT upon payment as specified in Announcement No. 40 [2021] of the Ministry of Finance and the State Taxation Administration, or enjoy the policy of VAT exemption if they engage in projects involving “labor services of sewage treatment” specified in Item 5.2 of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version).
[Qualifications]
1. The names of the comprehensively-utilized resources, the names of the products and services involving the comprehensive utilization of resources, technical standards and related conditions, and the rates of tax refunds, among others, shall be governed by the relevant provisions of the Catalogue of the Value-Added Tax Preferences for Products and Labor Services Involving the Comprehensive Utilization of Resources (2022 Version) (hereinafter referred to as the “Catalogue”).
2. A taxpayer engaging in a project of comprehensive utilization of resources listed in the Catalogue shall meet all of the following conditions when applying for enjoying the policy of immediate refund of VAT upon payment as prescribed in this Announcement:
（1） For the renewable resources acquired by the taxpayer inside China, the VAT invoice shall be obtained from the seller as required; and where the tax exemption policy applies, the plain VAT invoice shall be obtained from the sellers as required. If the seller is an entity that cannot apply for invoices in accordance with laws and regulations or a natural person engaging in small-amount sporadic business, the receipt voucher issued by the seller or the internal certificate of the purchaser, or the invoice issued by the tax authority on behalf of the taxpayer shall be obtained. The “small-amount sporadic business” as mentioned in this paragraph means the business under which the sales volume of a natural person engaging in the business operation of taxable items does not exceed the threshold as determined on a transaction-by-transaction basis.
For the renewable resources acquired by the taxpayer outside China, the Special Bill of Payment of Import VAT shall be obtained as required, or the receipt voucher with the nature of the invoice and related tax payment certificate shall be obtained from the seller.
（2） The taxpayer shall set up a ledger for the acquisition of renewable resources for future reference. The ledger shall contain the following information: the name of the unit supplying renewable resources, the name and ID number of the individual supplying renewable resources, the names, quantity, prices and payment methods of renewable resources, and whether a VAT invoice or a certificate conforming to relevant regulations has been obtained, etc. Such a ledger is not required if the aforesaid information is contained in the taxpayer’s existing account book or system.
（3） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those prohibited or restricted in the Catalogue for the Guiding Industrial Restructuring as issued by the National Development and Reform Commission.
（4） The taxpayer shall be engaged in the sale of self-produced products or labor services involving comprehensive utilization other than those with “high pollution and high environmental risks” or made through processes that cause serious pollution as set forth in the Comprehensive Catalogue for Environmental Protection issued by the Ministry of Ecology and Environment. The products with “high pollution and high environmental risks” refer to those products marked with “GHW/GHF” listed in the Comprehensive Catalogue for Environmental Protection, except that the products involving comprehensive utilization of resources produced and sold by taxpayers meet the technology and conditions specified in the “GHW/GHF” exception clause.
（5） The taxpayer shall have obtained a Hazardous Waste Business License issued by the department of ecology and environment at or above the provincial level, the scope of which shall include the use of hazardous wastes, if the comprehensively-utilized resources are hazardous wastes included in the List of the State for Hazardous Wastes as issued by the Ministry of Ecology and Environment.
（6） The taxpayer shall not be rated Grade C or D by the tax authority in terms of tax credit rating.
（7） When applying to enjoy the policy of immediate refund of VAT upon payment as prescribed in this Announcement, the taxpayer shall not have the following behaviors in the 6 months before the taxable period of the VAT for which a refund is applied (including the taxable period):
① The taxpayer is subject to administrative punishment for violation of laws and regulations on ecological environment protection (except for warning, criticism in a circulated notice, or a single fine of 100,000 yuan or less (the same below) , confiscation of illegal income, and confiscation of illegal property).
② The taxpayer is subject to punishment by the tax authorities for violation of tax laws and regulations (except for a single fine of 100,000 yuan or less), or committing the acts of fraudulently obtaining export tax rebates or issuing false invoices.
[Policy Basis]
Article 3, Article 4 and Annex, Announcement of the Ministry of Finance and the State Taxation Administration on Improving the Value-Added Tax Policies for the Comprehensive Utilization of Resources (No. 40 [2021])
37. Exemption of VAT on polluted water treatment fees
[Subjects]
Tap water works (companies)
[Preferences]
The polluted water treatment fees charged along with water rates by tap water works (companies) entrusted by governments at all levels and competent departments shall be exempt from VAT.
[Qualifications]
The polluted water treatment fees charged along with water rates by tap water works (companies) are entrusted by governments at all levels and competent departments.
[Policy Basis]
Notice of the Ministry of Finance and the State Taxation Administration on Value-Added Tax Policy for Polluted Water Treatment Fees (No. 97 [2001] of the Ministry of Finance and the State Taxation Administration)
(III) Tax preferences for the mining of mineral resources
38. Exemption of resource tax on the coal gas/coalbed methane (CBM) extracted by coal mining enterprises
[Subjects]
Coal mining enterprises extracting coal gas/coalbed methane (CBM)
[Preferences]
No resource tax shall be imposed on the coal gas/coalbed methane (CBM) extracted by coal mining enterprises for production safety.
[Qualifications]
Coal gas/coalbed methane (CBM) extracted for production safety.
[Policy Basis]
Paragraph 1 (2), Article 6, Resource Tax Law of the People's Republic of China
39. Reduction of resource tax for mineral products exploited from mines at the stage of depletion
[Subjects]
Taxpayers of resource tax that exploit mineral products from mines at the stage of depletion
[Preferences]
A 30% reduction shall be given to resource tax on mineral products exploited from mines at the stage of depletion.
[Qualifications]
Mineral products exploited from mines at the stage of depletion.
[Policy Basis]
Paragraph 2 (4), Article 6, Resource Tax Law of the People's Republic of China
40. Reduction of Resource Tax on the Coal Replaced by Filling Mining
[Subjects]
Taxpayers of resource tax that replace coal by filling mining
[Preferences]
From December 1, 2014 to August 31, 2023, the resource tax for the coal replaced by filling mining shall be reduced by 50%.
[Qualifications]
Coal replaced by filling mining.
[Policy Basis]
Article 4, Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Implementation of Preferential Resource Tax Policies (No. 32 [2020])
41. Exemption or reduction of resource tax for the mining of paragenic or associated minerals
[Subjects]
Taxpayers of resource tax that mine paragenic or associated minerals
[Preferences]
A province, autonomous region or municipality directly under the Central Government may decide to exempt or reduce resource tax on taxpayers that mine paragenic or associated minerals.
[Qualifications]
The taxpayer mines paragenic or associated minerals.
[Policy Basis]
Paragraph 2, Article 7, Resource Tax Law of the People's Republic of China
42. Exemption or reduction of resource tax for the mining of low-grade ores
[Subjects]
Taxpayers of resource tax that mine low-grade ores
[Preferences]
A province, autonomous region or municipality directly under the Central Government may decide to exempt or reduce resource tax on taxpayers that mine low-grade ores.
[Qualifications]
The taxpayer mines low-grade ores.
[Policy Basis]
Paragraph 2, Article 7, Resource Tax Law of the People's Republic of China
43. Exemption or reduction of resource tax on the mining of tailings
[Subjects]
Taxpayers of resource tax that mine tailings
[Preferences]
A province, autonomous region or municipality directly under the Central Government may decide to exempt or reduce resource tax on taxpayers that mine tailings.
[Qualifications]
The taxpayer mine tailings.
[Policy Basis]
Paragraph 2, Article 7, Resource Tax Law of the People's Republic of China
44. Reduction of resource tax on shale gas
[Subjects]
Taxpayers of resource tax that extract shale gas
[Preferences]
From April 1, 2018 to December 31, 2023, the resource tax on shale gas (at the specified tax rate of 6%) shall be reduced by 30%.
[Qualifications]
The taxpayer extracts shale gas.
[Policy Basis]
1. Notice of the Ministry of Finance and the State Taxation Administration on Reducing Resource Tax on Shale Gas (No. 26 [2018] of the Ministry of Finance and the State Taxation Administration)
2. Article 2, Announcement of the Ministry of Finance and the State Taxation Administration on Continuing the Implementation of Preferential Resource Tax Policies (No. 32 [2020])
3. Annex 1, Announcement of the Ministry of Finance and the State Taxation Administration on Extending the Implementation Period of Certain Preferential Tax Policies (No. 6 [2021])
(IV) Tax preferences for the construction of water conservancy projects
45. Exemption of urban maintenance and construction tax on the funds for the construction of major national water conservancy projects
[Subjects]
VAT taxpayers that pay the funds for the construction of major national water conservancy projects
[Preferences]
The funds for the construction of major national water conservancy projects shall be exempt from urban maintenance and construction tax.
[Qualifications]
The taxpayer pays the funds for the construction of major national water conservancy projects.
[Policy Basis]
1. Notice of the Ministry of Finance and the State Taxation Administration on the Exemption of Urban Maintenance and Construction Tax and Educational Surcharges on the Funds for the Construction of Major National Water Conservancy Projects (No. 44 [2010] of the Ministry of Finance and the State Taxation Administration)
2. Article 3, Announcement of the Ministry of Finance and the State Taxation Administration on the Preferential Urban Maintenance and Construction Tax Policies Which Remain in Force (No. 27 [2021])
46. Exemption of educational surcharges on the funds for the construction of major national water conservancy projects
[Subjects]
VAT taxpayers that pay the funds for the construction of major national water conservancy projects
[Preferences]
The funds for the construction of major national water conservancy projects may be exempt from educational surcharges.
[Qualifications]
The taxpayer pays the funds for the construction of major national water conservancy projects.
[Policy Basis]
Notice of the Ministry of Finance and the State Taxation Administration on the Exemption of Urban Maintenance and Construction Tax and Educational Surcharges on the Funds for the Construction of Major National Water Conservancy Projects (No. 44 [2010] of the Ministry of Finance and the State Taxation Administration)
47. Reduction of farmland occupation tax on the farmland occupied by water conservancy projects
[Subjects]
Taxpayers of farmland occupation tax that occupy farmland for the construction of water conservancy projects
[Preferences]
The farmland occupation tax shall be reduced by 2 yuan per square meter on the farmland occupied by water conservancy projects.
[Qualifications]
The specific scope of water conservancy projects applicable to tax reduction shall be limited to the land occupied by buildings and structures of various types of projects such as flood control, water logging drainage, irrigation, water diversion (supply), beach control, water and soil conservation, water resources protection and their supporting and ancillary projects approved by the water conservancy administrative department of the people's government at or above the county level, as well as the land used within the approved scope of management.
[Policy Basis]
1. Paragraph 2, Article 7, Law of the People's Republic of China on Farmland Occupation Tax
2. Article 15, Annex, Announcement of the Ministry of Finance, the State Taxation Administration, the Ministry of Natural Resources and Other Departments on Issuing the Measures for Implementing the Law of the People's Republic of China on Farmland Occupation Tax (No. 81 [2019])
IV. Promoting the development of the low-carbon industry
(I) Tax preferences for the China Clean Development Mechanism Fund (CCDMF) and clean development mechanism projects
48. Exemption of enterprise income tax on the income obtained by the China Clean Development Mechanism Fund (CCDMF)
[Subjects]
China Clean Development Mechanism Fund Management Center
[Preferences]
Eligible income obtained by the China Clean Development Mechanism Fund (CCDMF) shall be exempt from enterprise income tax.
[Qualifications]
The following incomes of the CCDMF shall be exempt from enterprise income tax:
1. The income from the transfer of greenhouse gas emission reductions in CDM projects is turned over to the state treasury;
2. Grants from international financial organizations;
3. Deposit interest of the capital of the CCDMF and interest on the treasury bonds purchased by the CCDMF; and
4. Contributions from domestic and foreign institutions, organizations and individuals.
[Policy Basis]
Article 1, Notice of the Ministry of Finance and the State Taxation Administration on the Enterprise Income Tax Policies for the China Clean Development Mechanism Fund and the Enterprises Implementing the Clean Development Mechanism Projects (No.30 [2009] of the Ministry of Finance and the State Taxation Administration)
49. Reduction and exemption of enterprise income tax on the implementation of clean development mechanism projects
[Subjects]
Enterprises implementing the clean development mechanism projects (hereinafter referred to as the “CDM projects”)
[Preferences]
For the CDM projects of hydrogen fluorocarbon (HFC) and perfluorocarbons (PFC) implemented by enterprises in which 65
of the income from the transfer of greenhouse gas emission reductions is turned over to the state treasury, and for the CDM projects of nitrous oxide (N2O) in which 30
of the income from the transfer of greenhouse gas emission reductions is turned over to the state treasury, the enterprise income tax shall be exempted on the income obtained from implementing such projects from the first to third year as of the taxable year in which the first income from the transfer of greenhouse gas emission reduction in such year is attributable, and shall be levied by half from the fourth to sixth year since the aforesaid taxable year.
[Qualifications]
1. The income obtained by an enterprise from implementing CDM projects means the net income calculated by deducting the part of the income obtained by such enterprise from the transfer of greenhouse gas emission reductions in CDM projects which is turned over to the state treasury and relevant costs and expenses incurred by it from the implementation of CDM projects from the total income obtained from the transfer of greenhouse gas emission reductions through the implementation of CDM projects.
2. The enterprise shall separately calculate the income obtained from CDM projects for which it enjoys referential tax policies and reasonably apportions the expenses incurred in relevant periods.
[Policy Basis]
Paragraph 2, Article 2, Notice of the Ministry of Finance and the State Taxation Administration on the Enterprise Income Tax Policies for the China Clean Development Mechanism Fund and the Enterprises Implementing the Clean Development Mechanism Projects (No.30 [2009] of the Ministry of Finance and the State Taxation Administration)
(II) Tax preferences for wind power generation, hydroelectric power generation, photovoltaic power generation and nuclear power industries
50. Immediate refund upon payment of VAT on wind power generation
[Subjects]
VAT taxpayers engaging in the sale of electricity products made by themselves through using wind power
[Preferences]
From July 1, 2015, taxpayers engaging in the sale of electricity products made by themselves through using wind power shall be subject to the VAT policy of immediately refunding 50% upon payment.
[Qualifications]
The taxpayer engages in the sale of self-produced electricity products made by using wind power.
[Policy Basis]
Notice of the Ministry of Finance and the State Taxation Administration on Value-Added Tax Policies for Wind Power Generation (No. 74 [2015] of the Ministry of Finance and the State Taxation Administration)
51. Exemption of urban land use tax for part of the land used by hydropower stations
[Subjects]
Hydropower stations
[Preferences]
The land used by hydropower stations, excluding the land used by power plants (including power plants inside and outside the dam) and the land for production, office and living shall be exempt from urban land use tax.
[Qualifications]
The land used by hydropower stations, excluding the land used by power plants (including power plants inside and outside the dam) and the land for production, office and living.
[Policy Basis]
Article 2, Regulations of the State Taxation Administration on the Issues Regarding the Exemption of Urban Land Use Tax in the Power Industry (GSDZ No. 13 [1989])
52. Exemption of the funds for the construction of major national water conservancy projects for self-generated and self-used electricity of distributed photovoltaic power
[Subjects]
Distributed photovoltaic power generation enterprises
[Preferences]
The self-generated and self-used electricity of distributed photovoltaic power shall be exempt from the funds for the construction of major national water conservancy projects.
[Qualifications]
Self-generated and self-used electricity of distributed photovoltaic power
[Policy Basis]
Notice of the Ministry of Finance on Relevant Issues of Exemption of Government Funds for Self-generated and Self-used Electricity of Distributed Photovoltaic Power (CZ No. 103 [2013])
53. Exemption of the surcharges on electricity generated from renewable energy sources on self-generated and self-used electricity of distributed photovoltaic power
[Subjects]
Distributed photovoltaic power generation enterprises
[Preferences]
The self-generated and self-used electricity of distributed photovoltaic power shall be exempt from the surcharges on electricity generated from renewable energy sources.
[Qualifications]
Self-generated and self-used electricity of distributed photovoltaic power
[Policy Basis]
Notice of the Ministry of Finance on Relevant Issues of Exemption of Government Funds for Self-generated and Self-used Electricity of Distributed Photovoltaic Power (CZ No. 103 [2013])
54. Exemption of the funds for follow-up support for large- and medium-sized reservoir-induced resettlement on self-generated and self-used electricity of distributed photovoltaic power
[Subjects]
Distributed photovoltaic power generation enterprises
[Preferences]
The self-generated and self-used electricity of distributed photovoltaic power shall be exempt from the funds for follow-up support for large- and medium-sized reservoir-induced resettlement.
[Qualifications]
Self-generated and self-used electricity of distributed photovoltaic power
[Policy Basis]
Notice of the Ministry of Finance on Relevant Issues of Exemption of Government Funds for Self-generated and Self-used Electricity of Distributed Photovoltaic Power (CZ No. 103 [2013])
55. Exemption of the funds for rural power grid loan repayment on self-generated and self-used electricity of distributed photovoltaic power
[Subjects]
Distributed photovoltaic power generation enterprises
[Preferences]
The self-generated and self-used electricity of distributed photovoltaic power shall be exempt from the fund for rural power grid loan repayment.
[Qualifications]
Self-generated and self-used electricity of distributed photovoltaic power
[Policy Basis]
Notice of the Ministry of Finance on Relevant Issues of Exemption of Government Funds for Self-generated and Self-used Electricity of Distributed Photovoltaic Power (CZ No. 103 [2013])
56. Exemption of urban land use tax for part of the land used by nuclear power stations
[Subjects]
Nuclear power stations
[Preferences]
1. The land used by nuclear power stations, excluding the land used for nuclear islands, conventional islands, auxiliary plants and communication facilities (excluding underground lines) and the land for living and office shall be exempt from urban land use tax.
2. The urban land use tax shall be levied by half on the taxable land of nuclear stations within the construction period.
[Qualifications]
1. The land used by nuclear power stations, excluding the land used for nuclear islands, conventional islands, auxiliary plants and communication facilities (excluding underground lines) and the land for living and office.
2. Taxable land of nuclear stations within the construction period.
[Policy Basis]
Notice of the Ministry of Finance and the State Taxation Administration on the Exemption of Urban Land Use Tax on the Land Used by Nuclear Power Stations (No. 124 [2007] of the Ministry of Finance and the State Taxation Administration)
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