China's State Administration of Taxation has published Announcement No. 91 of 2019, which was jointly issued with the Ministry of Finance and provides for the extension of the VAT exemption (refund) on domestically-produced research and development (R&D) equipment purchased by R&D institutions, including approved domestically-funded R&D institutions and foreign-funded R&D centers, subject to certain conditions.
For foreign-funded R&D centers, specific conditions for the VAT exemption depend on when the R&D center was established:
Before the exemption can apply, the R&D center must be examined and approved by the competent authority as to whether the conditions are met. R&D centers that have been approved within the prior two years may continue to enjoy the exemption for two years.
Announcement No. 91 applies from 1 January 2019 to 31 December 2020 and repeals Notice 121 of 2016 on the exemption, which expired 31 December 2018.
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