A tax refund or tax rebate is a refund on taxes when the tax liability is less than the taxes paid. Taxpayers can often get a tax refund on their income tax if the tax they owe is less than the sum of the total amount of the withholding taxes and estimated taxes that they paid, plus the refundable tax credits that they claim. (Tax refunds are money given back at the end of the financial year.)
In China, foreigners can apply for tax refund for all the taxed goods they bought in China, including imported goods. They can bring the invoices of the goods and apply at the competent departments of the Chinese Government. Goods eligible for tax refund include:
1. Tap water, electricity, natural gas, and central heating expenses consumed within the premises and residence of diplomatic missions;
2. Building and decoration materials and equipment purchased for premises and residence of diplomatic missions in the Chinese market;
3. China-made motor vehicles bought within reasonable scope by officials of diplomatic missions in the Chinese market for private use;
4. Equipment of goods bought by diplomatic missions and their staff in the Chinese market for private use within reasonable scope, and each receipt amounts to no less than RMB 2000 Yuan in value;
5. Taxable maintenance service for private-use motor vehicles owned by diplomatic missions and their staff.
If the foreigners purchase goods that fall within the above categories, may apply for tax refund at competent authorities of the Chinese Government through the foreign entity they work for in China. The entity they work for should put together all the requests on a quarterly basis, fill out Tax Refund Application Form for Foreign Diplomatic (Consular) Missions in China signed by the person in charge, submit the Form to the Protocol Department, MFA. The latter will put together all the requests and apply for tax refund at Beijing Office of State Taxation Administration of China or Division of Privileges and Immunity of the Protocol Department, MFA.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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