China customs Tax exemption for charitable donations

Announcement No. 6 of 2020 of the General Administration of Customs and the State Administration of Taxation on the tax exemption policy for imported charitable donated materials.

According to the relevant provisions of the “Interim Measures for the Exemption of Import Taxes on Charitable Donated Materials” issued jointly by the General Administration of Customs and the State Administration of Taxation, foreign donors donate gratis to the recipients for the prevention and control of pneumonia epidemic (hereinafter referred to as epidemic situation) Imported materials are exempt from import tax.

In order to further support the epidemic prevention and control work, from January 1 to March 31, 2020, a more preferential import tax policy will be implemented. The announcement is as follows:

The scope of duty-free imports as stipulated in the Interim Measures for the Exemption of Import Taxes on Charitable Donated Materials shall be appropriately expanded. Imported materials donated for epidemic prevention and control shall be exempted from import duties, import value-added tax and consumption tax.

(1) Imported materials increase reagents, disinfection articles, protective supplies, ambulances, epidemic prevention vehicles, disinfection vehicles, emergency command vehicles.

(2) Increase the scope of tax exemption. Relevant domestic government departments, enterprises, institutions, social organizations, individuals and foreign citizens who come to China or in China import and donate directly from overseas or special customs supervision areas; domestic processing trade enterprises donate.
The donated materials shall be used directly for the prevention and control of epidemics and shall comply with the provisions of (1) above or the Provisional Measures for the Exemption of Import Taxes on Charitable Donated Materials.

(3) The grantee shall increase the provincial civil affairs department or its designated unit. The provincial civil affairs department will send a list of designated units to the customs and provincial tax departments directly under the seat.
Imported materials with no clear recipients donated by China Red Cross Federation, All China Women’s Federation, China Disabled Persons Federation, China Charity Federation, China Primary Health Care Foundation, China Song Qingling Foundation, or China Cancer Fund Will be received as a grantee.

Duties are exempted for imported materials used by the competent health department for direct prevention and control of epidemic situation.

The imported materials shall comply with the provisions of Article 1 (1) above or the Provisional Measures for the Exemption of Import Taxes on Charitable Donated Materials.

The Provincial Department of Finance, together with the provincial competent department of health and health, shall determine the list of import units and the list of imported materials, and send a letter to the customs and provincial tax authorities directly under the location.

Duty-free imported materials under this announcement will be refunded.

Among them, those who have already taxed imports and have not declared the VAT input tax credit can apply to the customs for refund of the “VAT input tax credit of imported materials for prevention and control of pneumonia epidemic of new coronavirus infection” issued by the competent tax authority Import duties, import value-added tax and consumption tax procedures have been levied.

Those who have already applied for the input VAT deduction can apply to the customs for the procedures of refunding the imported tariff and the consumption tax on import link.

Relevant import units should go through customs tax refund procedures before September 30, 2020.

Duty-free imported materials under this announcement may be registered and released in accordance with or in accordance with the General Administration of Customs Announcement No. 17 of 2020, and then the relevant procedures shall be completed in accordance with regulations.