What goods do trading companies apply for tax exemption in the national tax department?

It depends on what industry you are in.

Tax exemption items include:

(1) Agricultural products

1, selling self-produced agricultural products

Self-produced agricultural products sold by agricultural producers are exempt from value-added tax.

(Excerpted from the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax)

2. Grain and edible vegetable oil

Grain sold by state-owned grain purchasing and selling enterprises that undertake grain purchasing and storage tasks shall be exempted from value-added tax; For other grain enterprises engaged in grain business, value-added tax shall be levied except for the following items.

(1) commissary: refers to the commissary supplied to the China People's Liberation Army and the Chinese People's Armed Police Force at the commissary supply price with commissary vouchers and commissary supply certificates.

(2) Disaster relief food: refers to the food that is approved by the people's government at or above the county level and supplied to the victims in need with the sales price (voucher) of disaster relief food.

(3) Rations for reservoir migrants: refers to the grain supplied to reservoir migrants at the prescribed sales price with the approval of the people's governments at or above the county level.

For the business of selling edible vegetable oil, in addition to selling edible vegetable oil reserved by the government, value-added tax is levied according to regulations.

This notice shall be implemented as of 1 August 19981day.

(Excerpted from Caishui [1999]No. 198)

The grain subsidies for returning farmland to forests and grasslands operated by the grain department shall be exempted from value-added tax if they meet the standards set by the state.

(Excerpted from Guo Shui Fa [200 1] 13 1)

(2) Agricultural means of production

1, feed

The scope of duty-free feed products includes:

(1) Single batch feeding. Refers to products or by-products derived from animals, plants, microorganisms or minerals. Its scope is limited to bran, distiller's grains, fish meal, forage feed, feed-grade calcium hydrogen phosphate and rapeseed meal, cottonseed meal, sunflower meal, peanut meal and other meal products except soybean meal.

(2) Mixed feed. Refers to the feed composed of more than two kinds of single bulk feed, grain, grain by-products and feed additives in a certain proportion, in which the proportion of single bulk feed, grain and grain by-products is not less than 95%.

(3) compound feed. It refers to the feed that can meet all the nutritional needs of animals (except water) after industrialized production of various feed raw materials according to the nutritional needs of different feeding objects and different feeding objects in their growth and development stages and according to the feed formula.

(4) Composite premix. It refers to the uniform mixture of trace elements (more than 4 kinds) and vitamins (more than 8 kinds) required by the corresponding stage of animal feeding according to the requirements of national standards for feed products, which is composed of any two or more components of trace elements, vitamins, amino acids and non-nutritive additives and carriers or diluents in a certain proportion.

(5) Concentrated feed. It refers to a homogeneous mixture made of protein, compound premix and minerals in a certain proportion.

This notice shall be implemented as of August 1 2006.

(Excerpted from Caishui [200 1]No. 12 1)

Feed fish oil is a by-product of fish meal production, which is mainly used for aquaculture and broiler feeding and belongs to a single bulk feed. From June 5438+1 October1day, feed fish oil products are exempted from VAT according to the current "single bulk feed" VAT policy.

(Excerpted from Guoshuihan [2003] 1395)

Mineral trace element lick brick is a block premix made of more than four trace elements, non-nutritive additives and carriers. Cattle, sheep and other livestock can eat it directly and should be exempted from value-added tax as "feed".

(Excerpted from Guoshuihan [2005] 1 127)

Feed-grade calcium dihydrogen phosphate products can be exempted from VAT according to the current "single bulk feed" VAT policy.

This notice shall be implemented as of June 65438+10/October 65438 +0, 2007.

(Excerpted from Guoshuihan [2007] No.65438 +00)

2. Other agricultural means of production

The following goods are exempt from VAT:

(1) agricultural film.

(2) Production and sales of compound fertilizer with nitrogen fertilizer other than urea, phosphate fertilizer other than diammonium phosphate, potash fertilizer and duty-free fertilizer as the main raw materials (the cost of duty-free fertilizer used by enterprises to produce compound fertilizer products accounts for more than 70% of all fertilizer costs in raw materials). "Compound fertilizer" refers to a fertilizer containing at least two of the three nutrients of nitrogen, phosphorus and potassium processed by chemical or physical methods, including compound fertilizer made only by chemical methods and mixed fertilizer made only by physical methods (also called mixed fertilizer).

(3) wholesale and retail of seeds, seedlings, fertilizers, pesticides and agricultural machinery.

(Excerpted from Caishui [200 1]No. 1 13)

Unpowered walking tractors (also known as "walking tractor chassis") and three-wheeled agricultural transport vehicles (referring to three-wheeled agricultural transport vehicles powered by single-cylinder diesel engines) belong to "agricultural machinery" and should be exempted from VAT according to the provisions of the VAT policy on "agricultural machinery".

This notice shall be implemented as of June 1 2002.

(Excerpted from Caishui [2002] No.89)

Since July 1 2007, drip irrigation tapes and drip irrigation pipe products produced, sold, wholesale and retail by taxpayers are exempt from VAT. Drip irrigation belt and drip irrigation pipe products refer to hose and water pipe products specially used for agricultural water-saving drip irrigation system, which are processed with orifices or other outflow devices in the manufacturing process and can drain water in drops or continuous flow. Drip irrigation belt and drip irrigation pipe products are produced according to relevant national quality and technical standards. The drip irrigation system consists of PVC pipe (main pipe), pe pipe (auxiliary pipe), socket fittings, filters and other components.

(Excerpted from Caishui [2007] No.83)

From June 5438+February 1 day, 2004, the potash fertilizer produced and sold by fertilizer production enterprises was exempted from value-added tax, and it was taxed first and then returned.

(Excerpted from Caishui [2004] 197)

Since July 1 day, 2005, the value-added tax on urea products produced and sold by domestic enterprises has been adjusted from collecting first and then returning 50% to temporarily exempting from collection of value-added tax.

(Excerpted from Caishui [2005] No.87)

Since June 5438+ 10/day, 2008, diammonium phosphate products produced and sold by taxpayers are exempt from value-added tax.

(Excerpted from Caishui [2007] 17 1)

Since June 1 day, 2008, taxpayers' production, sale, wholesale and retail of organic fertilizer products are exempt from value-added tax.

Organic fertilizer products that enjoy the above tax exemption policy refer to organic fertilizer, organic-inorganic compound fertilizer and bio-organic fertilizer.

(1) Organic fertilizer refers to a carbonaceous substance that comes from plants and/or animals and is applied to soil to provide plant nutrition as its main function.

(2) Organic-inorganic compound fertilizer refers to a compound fertilizer containing a certain amount of organic fertilizer made by mixing and/or combining organic and/or inorganic fertilizers.

(3) Bio-organic fertilizer refers to a kind of fertilizer which has the functions of both microbial fertilizer and organic fertilizer, and consists of specific functional microorganisms and organic substances mainly derived from animal and plant residues (such as livestock manure, crop straws, etc.). ) and harmless treatment and decomposition.

(Excerpted from Caishui [2008] No.56)

Ammoniated calcium nitrate belongs to nitrogen fertilizer. According to the second paragraph of Article 1 of the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on the Policy of Exempting Certain Agricultural Production Materials from VAT (Cai Shui [2001]13), ammoniated calcium nitrate is exempted from VAT.

(Guoshuihan [2009] No.430)

Note: Since February 1 2007, the VAT rate applicable to ammonium nitrate has been uniformly adjusted to 17%, and fertilizer products are no longer exempt from VAT policy.

(Excerpted from Caishui [2007] No.7)

(3) Comprehensive utilization of resources

1, reclaimed water

From June 5438+1 October1day, 2009, the following self-produced goods are exempt from VAT: reclaimed water. Reclaimed water refers to water resources recovered from sewage treatment plant effluent, industrial drainage (mine water), domestic sewage, landfill leachate, etc. After proper treatment, it can reach a certain water quality standard and can be reused in a certain range. Reclaimed water shall comply with the relevant provisions of the Water Quality Standard for Reclaimed Water (SL 368-2006) issued by the Ministry of Water Resources.

(Excerpted from Caishui [2008] 156)

2. Rubber powder

From June 5438+1 October1day, 2009, the following self-produced goods are exempt from value-added tax: rubber powder produced with waste tires as all production raw materials. Rubber powder should meet the performance index specified in GB/T 19208-2008.

(Excerpted from Caishui [2008] 156)

Step 3 retread tires

From June 5438+1 October1day, 2009, the following self-produced goods are exempt from VAT: retreaded tires. The retreaded tires shall meet the performance indexes specified in GB7037—2007, GB 14646-2007 or Hg/T 3979-2007, and 100% of the retreaded tire carcass shall come from waste tires.

(Excerpted from Caishui [2008] 156)

4. Specific building materials products.

From June 5438+1 October1day, 2009, sales of the following self-produced goods are exempt from VAT: specific building materials with a waste residue ratio of not less than 30%. Specific building materials products refer to bricks (excluding sintered ordinary bricks), building blocks, ceramsite, wallboard, pipes, concrete, mortar, road manhole covers, road guardrails, fireproof materials, refractory materials, thermal insulation materials and mineral (rock) cotton.

(Excerpted from Caishui [2008] 156)

5. Sewage treatment services.

Since June 5438+ 10/day, 2009, sewage treatment services are exempt from value-added tax. Sewage treatment refers to the business of treating sewage to meet the relevant water quality standards of GB 189 18-2002.

(Excerpted from Caishui [2008] 156)

6, high purity carbon dioxide products.

Since July 1, 2008, the sales of the following self-produced goods have been subject to the policy of immediate collection and refund of value-added tax: high-purity carbon dioxide products produced by industrial waste gas. High-purity carbon dioxide products shall comply with the relevant provisions of GB10621-2006+0-2006.

(Excerpted from Caishui [2008] 156)

7. Electricity or heat.

From July 1, 2008, the sales of the following self-produced goods will be subject to the policy of immediate collection and refund of VAT: electricity or heat produced with garbage as fuel. The proportion of garbage consumption in power generation fuel is not less than 80%, and the production discharge reaches the 2003 GB13223-1standard or GB18485-2001related regulations. The term "garbage" as mentioned in these Measures refers to municipal solid waste, crop straw, bark waste residue, sludge and medical waste.

From July 1 2008, the value-added tax realized on the sale of the following self-produced goods will be refunded at a lump sum of 50%: electricity and heat produced with coal gangue, coal slime, stone coal and oil shale as fuels. The proportion of coal gangue, coal slime, stone coal and oil shale in power generation fuel is not less than 60%.

From July 1 2008, 50% of the value-added tax realized on the sale of the following self-produced goods will be refunded as needed: electricity produced by wind power generation.

(Excerpted from Caishui [2008] 156)

8.shale oil.

Since July 1 2008, the following self-produced goods have been subject to the policy of immediate collection and immediate refund of value-added tax: shale oil produced from oil shale, a waste associated with coal mining.

(Excerpted from Caishui [2008] 156)

9. Recycled asphalt concrete.

Since July 1 2008, the following self-produced goods have been subject to the VAT refund policy: recycled asphalt concrete produced from waste asphalt concrete. The proportion of waste asphalt concrete in production raw materials is not less than 30%.

(Excerpted from Caishui [2008] 156)

10, cement (including cement clinker).

From July 1 day, 2008, the sales of the following self-produced goods will be subject to the VAT refund policy:

For cement produced by rotary kiln method (including cement clinker, the same below) or cement produced by grinding cement clinker purchased from abroad, the proportion of mixed waste residue in cement production raw materials shall not be less than 30%.

1. The formula for calculating the mixing ratio of waste residue in cement produced in raw meal sintering and clinker grinding stages by rotary kiln method is: mixing ratio of waste residue = (mixing amount of waste residue in raw meal sintering stage+mixing amount of waste residue in clinker grinding stage) ÷ (mixing amount of raw meal except waste residue+mixing amount of waste residue in raw meal sintering and clinker grinding stage+other materials) ×100.

2. The formula for calculating the mixing ratio of cement clinker produced by grinding process is: mixing ratio of waste residue = mixing amount of waste residue in clinker grinding stage ÷ (clinker amount+mixing amount of waste residue in clinker grinding stage+other materials amount) × 100%.

(Excerpted from Caishui [2009] 163)

1 1, coated with nitrocellulose powder.

From July 1 2008, the value-added tax realized by selling the following self-produced goods will be refunded 50% on demand: coated nitrocellulose powder produced with retired military propellant. The proportion of retired military propellant in raw materials is not less than 90%.

(Excerpted from Caishui [2008] 156)

12, by-product.

From July 1 2008, the value-added tax realized by selling the following self-produced goods will be refunded at a lump sum of 50%: by-products of flue gas desulfurization production produced by coal-fired power plants and various industrial enterprises and high-sulfur natural gas. By-products refer to gypsum (the content of calcium sulfate dihydrate is not less than 85%), sulfuric acid (the concentration is not less than 15%), ammonium sulfate (the total nitrogen content is not less than 18%) and sulfur.

(Excerpted from Caishui [2008] 156)

13, steam, activated carbon, silica, lactic acid, calcium lactate, biogas.

From July 1, 2008, the sales of the following self-produced goods will be refunded in one lump sum: steam, activated carbon, white carbon, lactic acid, calcium lactate and biogas produced by waste distiller's grains and bottom pot water. The proportion of waste distiller's grains and bottom pot water in production raw materials is not less than 80%.

(Excerpted from Caishui [2008] 156)

14, some new wall materials.

From July 1 2008, the value-added tax realized on the sale of the following self-produced goods will be refunded 50% as needed: some new wall materials. The specific scope shall be implemented according to Annex 1 Catalogue of New Wall Materials with VAT Preferential Policies of this Notice.

(Excerpted from Caishui [2008] 156)

15, biodiesel.

Since July 1 2008, the comprehensive utilization of self-produced biodiesel has been implemented with the policy of VAT being levied first and then refunded. The comprehensive utilization of biodiesel refers to the diesel oil produced from waste animal and vegetable oils. The amount of waste animal and vegetable oil accounts for not less than 70% of the production raw materials.

(Excerpted from Caishui [2008] 156)

(4) Building materials and biological products

1, building materials.

General taxpayers who sell the following goods produced by themselves can choose to calculate and pay VAT at the rate of 6% according to the simple method:

Sand, soil and stone used for building and producing building materials.

Bricks, tiles and lime (except clay solid bricks and tiles) continuously produced from self-dug sand, soil, stone or other minerals.

Commercial concrete (limited to cement concrete produced with cement as raw material).

2. Biological products

General taxpayers who sell the following goods produced by themselves can choose to calculate and pay VAT at the rate of 6% according to the simple method:

Biological products made of microorganisms, microbial metabolites, animal toxins, human or animal blood or tissues.

(Excerpted from Caishui [2009] No.9)

(5) Articles for personal use and secondhand goods.

1, other individuals.

Other personal sales and personal use items are exempt from VAT.

(Excerpted from the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax and its implementing rules)

2. General taxpayers.

For ordinary taxpayers selling their own non-deductible fixed assets and the non-deductible input tax stipulated in Article 10 of the Regulations, the simplified method shall be applied to levy VAT at a rate of 4%.

(Excerpted from Caishui [2009] No.9)

General taxpayers sell their purchased or self-made waste fixed assets before June 5438+February 365438 +0, 2008, and the value-added tax is levied at a reduced rate of 4%.

(Excerpted from Caishui [2008] 170)

3. Small-scale taxpayers.

Small-scale taxpayers (except other individuals) who sell their used fixed assets are subject to VAT at a reduced rate of 2%.

(Excerpted from Caishui [2009] No.9)

4, second-hand goods.

Taxpayers selling second-hand goods will apply the simple method, and the value-added tax will be halved at the rate of 4%. Second-hand goods refer to goods with partial use value (including second-hand cars, second-hand motorcycles and second-hand yachts) that enter the secondary circulation, but do not include articles for personal use.

(Excerpted from Caishui [2009] No.9)

(6) Employment and supplies for the disabled

1, employment of disabled people:

For the units that place disabled people, the tax authorities shall implement the measures for the actual placement of disabled people, and refund the value-added tax or reduce the business tax when collecting the quota.

The specific limit for the annual refund of value-added tax or reduction of business tax for each disabled person actually placed shall be determined by the tax authorities at or above the county level according to six times the minimum wage standard approved by the people's government at the provincial level (including autonomous regions, municipalities directly under the Central Government and cities with separate plans) where the unit is located, but the maximum shall not exceed 35,000 yuan per person per year.

Units that enjoy preferential tax policies and arrange employment for the disabled (including welfare enterprises, blind massage institutions, occupational therapy institutions and other units) may apply for preferential tax policies as stipulated in Articles 1 and 2 of this Notice if they meet the following conditions and are recognized by relevant departments:

(1) Sign a labor contract or service agreement for more than one year (including one year) with each legally placed disabled person, and each placed disabled person will actually take up a job in this unit.

(2) The average monthly actual placement of the disabled should account for more than 25% (including 25%) of the total number of employees in this unit, and the actual placement of the disabled should be more than 10 (including 10). The average monthly actual placement of disabled persons accounts for less than 25% (excluding 25%) but more than 1.5% (including 1.5%) of the total number of employees in this unit. If the actual number of disabled persons exceeds 5 (including 5), they can enjoy the preferential enterprise income tax policy stipulated in Item (1) of Article 2 of this notice, but not the preferential enterprise income tax policy stipulated in Article 1 of this notice.

(3) Every disabled person who has been placed has paid in full the social insurance such as basic old-age insurance, basic medical insurance, unemployment insurance and work-related injury insurance stipulated by the people's government of the district or county where the unit is located according to national policies.

(4) Through banks and other financial institutions, the actual salary for each disabled person is not lower than the minimum wage standard approved by the provincial people's government and applicable to the districts and counties where the unit is located.

(5) have the basic facilities for the employment of the disabled.

Enterprises run by special education schools can enjoy the preferential policy of refund of value-added tax as long as the monthly average proportion and number of disabled people actually meet the above requirements.

(Excerpted from Caishui [2007] No.92)

2. Prohibited articles:

Goods directly imported by organizations of disabled persons for the exclusive use of disabled persons shall be exempted from value-added tax.

(Excerpted from the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax)

Disabled prostheses, wheelchairs and orthoses (including upper limb orthoses, lower limb orthoses and scoliosis orthoses) are exempt from VAT.

(Excerpted from Caishuizi [1994] No.60)

3. Services provided by persons with disabilities

Individuals with disabilities who provide processing, repair and replacement services are exempt from value-added tax.

(Excerpted from Caishui [2007] No.92)

(7) Software products

General taxpayers of value-added tax sell embedded software developed and produced by themselves along with computer networks, computer hardware, machinery and equipment. If the embedded software can be accounted for separately according to the third paragraph of Article 1 of the Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on Implementing the Decision of the Central Committee and the State Council on Strengthening Technological Innovation, Developing Hi-tech and Realizing Industrialization (Caishuizi [1999] No.273).

(Excerpted from Caishui [2008] No.92)

(8) Farmers' professional cooperatives

Farmers' professional cooperatives selling agricultural products produced by their members are regarded as agricultural producers selling their own agricultural products exempt from value-added tax.

Agricultural films, seeds, seedlings, chemical fertilizers, pesticides and agricultural machinery sold by farmers' professional cooperatives to cooperative members are exempt from value-added tax.

This notice shall be implemented as of July 1 2008.

(Excerpted from Caishui [2008] No.81)

(9) Publicity culture

1, antique book

Ancient books are exempt from value-added tax.

(Excerpted from the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax)

2. Movie copy

The administrative departments of radio, film and television (including the central government, provinces, prefectures and counties) shall, according to their respective functions and powers, approve film group companies (including member enterprises), film studios and other film enterprises engaged in film production, distribution and projection to be exempted from value-added tax.

The implementation period of the above preferential tax policies is from June 65438+1 October 20091day to June 65438+February 3, 20091day 20/3.

(Excerpted from Caishui [2009] No.31)

3. Party newspapers and journals

Cultural enterprises formed by separating the distribution and printing business and corresponding operating assets from the party newspapers and periodicals shall be exempted from value-added tax on the distribution income and printing income of the party newspapers and periodicals from the date of registration. Appropriate preferential policies shall be given to the value-added tax involved in the asset transfer or transfer in the transformation of operating cultural institutions. The specific preferential policies shall be determined by the Ministry of Finance and State Taxation Administration of The People's Republic of China according to the transformation plan.

The implementation period of this notice is from June 5438+ 10/day, 2009 to June 2065438+March 3 1 day, 2003.

(Excerpted from Caishui [2009] No.34)

(10) Medical and health care

1, contraceptives and appliances

Contraceptive drugs and appliances are exempt from value-added tax.

(Excerpted from the Provisional Regulations of People's Republic of China (PRC) on Value-added Tax)

2. Medical and health institutions

(1) Tax policy of non-profit medical institutions

1) The medical service income obtained by non-profit medical institutions at the price stipulated by the state shall be exempted from all taxes. Medical service income that is not obtained at the price stipulated by the state does not enjoy this policy.

Medical service refers to the services provided by medical service institutions such as examination, diagnosis, treatment, rehabilitation, preventive health care, delivery and family planning, as well as the provision of drugs, medical materials, ambulances, ward accommodation and meals related to these services (the same below).

2) Preparations produced and used by non-profit medical institutions are exempt from VAT.

(2) Tax policies of for-profit medical institutions.

Various taxes shall be levied on the income obtained by for-profit medical institutions in accordance with regulations. However, in order to support the development of for-profit medical institutions, if the income obtained by for-profit medical institutions is directly used to improve medical and health conditions, its self-produced and self-used preparations shall be exempted from value-added tax within three years from the date of obtaining practice registration.

(3) Tax policies of health institutions such as disease control institutions and maternal and child health care institutions.

The income of health services (including inoculation, allocation and sales) obtained by health institutions such as disease control institutions and maternal and child health care institutions at the price stipulated by the state shall be exempted from various taxes. Health service income that is not obtained at the price stipulated by the state does not enjoy this policy.

(Excerpted from Caishui [2000] No.42)

3. Blood station

Blood for clinical use supplied by blood stations to medical institutions is exempt from VAT.

The blood station mentioned in this notice refers to a non-profit public welfare organization engaged in collecting and providing blood for clinical use with the approval of the health administrative department of the State Council or the provincial people's government in accordance with the provisions of the People's Republic of China (PRC) Blood Donation Law.

This notice shall be implemented as of 1999 1 1.

(Excerpted from Caishuizi [1999] No.264)

(1 1) electric power

1, small hydropower units below county level

The electricity produced by small hydropower units at or below the county level can be calculated and paid 6% value-added tax according to the simple method.

(Excerpted from Caishui [2009] No.9)

2, rural power grid maintenance fee

From 1 998 65438+1October1,the rural power grid maintenance fee (including low-voltage line loss maintenance fee and electrician fund) charged by the rural power management station to users at the same time shall be exempted from value-added tax.

(Excerpted from Caishuizi [1998] No.047)

County Power Supply Co., Ltd. is exempt from value-added tax for the maintenance fee of rural power grid charged after the reform of rural power management station.

(Excerpted from Guoshuihan [2002] No.4265438 +0)

3. Oil-fired power plants

Power generation subsidies obtained by oil-fired power plants from government financial accounts do not belong to the prescribed extra-price expenditures, are not included in taxable sales, and are not subject to value-added tax.

(Excerpted from Guoshuihan [2006] 1235)

(12) tap water

General taxpayers selling self-produced tap water can choose to calculate and pay value-added tax at the rate of 6% according to a simple method; For the tap water sold by the tap water company belonging to the general taxpayer, the value-added tax shall be levied at the rate of 6% according to the simple method, and the value-added tax indicated on the value-added tax deduction certificate obtained by purchasing tap water shall not be deducted.

(Excerpted from Caishui [2009] No.9)

From July 1 2006, the sewage treatment fees charged by water plants (companies) entrusted by governments at all levels and competent departments are exempt from VAT.

(Excerpted from Caishui [20065438+0] No.97)

(13) Military system of the army

1, military system:

Weapons and their parts, ammunition, military training equipment and military equipment produced by various units in the military system for the troops are exempt from value-added tax. The police uniforms produced, sold and allocated to the public security system and the national security system by quartermaster factories and material supply and marketing units are exempt from value-added tax. The cooperation between military factories in the production of military products is exempt from value-added tax. All units in the military system engaged in processing, repairing and replacing weapons and their parts, ammunition, military training equipment and military equipment are exempt from value-added tax.

(Excerpted from Caishui Word [1994]0 1 1)

2. Military system:

Military products sold to the army, people's armed police force and military factories by military factories (including scientific research units) included in the military production plan of the competent military department shall be exempted from value-added tax according to the principle of military product pricing. Weapons and equipment produced and sold by military factories to the public security system, judicial system and national security system are exempt from value-added tax. Military factories provide each other with goods for the production of military products and special non-standard equipment, tools, molds and measuring tools for the production of military products, which are exempt from value-added tax.

(Excerpted from Caishui Word [1994]0 1 1)

3, in addition to the military industry, military system enterprises.

Military products produced by general industrial enterprises other than military industry and military system enterprises are exempt from value-added tax only for guns, guns, mines, bombs, military ships, planes, tanks, radars, radio stations, marine diesel engines, various gun sights and sights.

(Excerpted from Caishui Word [1994]0 1 1)

4. Material distribution

Goods exported by military products and military system units to military factories or military departments for allocation shall be exempted from value-added tax in the production process, and export shall not be refunded.

(Excerpted from Caishui Word [1994]0 1 1)

Military material supply institutions allocate materials within the military system, and in principle use the pricing list of military material allocation, and the materials allocated within the military are exempt from value-added tax.

(Excerpted from Guo Shui Fa [1994]No. 12 1)

Steel, timber, cement, coal, tools, medicines, boilers and sewing machinery produced by enterprises affiliated to the military system are allocated or sold in the military system according to the principle of military product pricing, and are exempt from value-added tax. All foreign sales are subject to value-added tax.

(Excerpted from Caishuizi [1997]No. 135)

(14) Public security and judicial departments

The products of Ming Dynasty reconnaissance security equipment developed, produced and sold by the Scientific Research Institute of the Ministry of Public Security and the Public Security Reconnaissance Security Equipment Factory for public security, justice and national security systems are exempt from value-added tax. Police uniforms produced and sold by reform-through-labour factories for public security, justice and national security systems are exempt from value-added tax.

(Excerpted from Caishuizi [1994] No.29)

(15) Financial assets

1, asset company

The subjects enjoying preferential tax policies are China Xinda Asset Management Company, China Huarong Asset Management Company, China Great Wall Asset Management Company, China Oriental Asset Management Company and their branches established in various places with the approval of the State Council. Unless otherwise stipulated, the affiliated enterprises of an asset company shall not enjoy the preferential tax policies of the asset company.

If the asset company accepts the bad debts of relevant state-owned banks, and the borrower pays the principal and interest of the loan with goods, real estate, intangible assets, marketable securities and bills, it shall be exempted from the value-added tax and business tax payable by the asset company in selling or transferring goods, real estate, intangible assets, marketable securities and bills and engaging in financial leasing business with goods and real estate.

(Excerpted from Caishui [200 1]No. 10)

2. Financial institutions

The subjects enjoying preferential tax policies refer to the financial institutions legally determined by the People's Bank of China and their branches in various places, including commercial banks, trust and investment companies, finance companies, financial leasing companies, urban credit cooperatives and rural credit cooperatives that have been revoked according to law. Unless otherwise provided, the affiliated enterprises of the revoked financial institutions shall not enjoy the preferential tax policies of the revoked financial institutions as stipulated in this notice.

When the property of the revoked financial institution is used to pay off debts, the value-added tax, business tax, urban maintenance and construction tax, education surcharge and land value-added tax payable by the revoked financial institution in transferring goods, real estate, intangible assets, securities and bills shall be exempted.

(Excerpted from Caishui [2003] 14 1)