Obtaining Tax Refund of Incremental Tax Credits
Taxpayers who meet the following conditions at the same time may apply to the competent tax authority for refund of incremental tax credits*:
– Since the tax period of April 2019, the incremental tax credits for six consecutive months (for quarterly tax payments, two consecutive quarters) are greater than zero, and the incremental tax credits for the sixth month are not less than 500,000 yuan;
– Tax credit rating is A or B;
– In the 36 months prior to the application for tax refund there has been no case of fraudulently obtaining tax refunds, export tax refunds or falsely issuing special VAT invoices;
– No punishment twice or more by the tax authorities for tax evasion 36 months before applying for tax refund;
– Since 1 April 2019, those who have not enjoyed the policy of immediate refund or refund after collection.
*The term “incremental tax credits” as mentioned here refers to the newly added tax credits at the end of the period compared with the end of March 2019.