China MOF Clarifies VAT Additional Credit Policy for Advanced Manufacturing Enterprises

The Chinese Ministry of Finance Sept. 6 issued Announcement No. 43, clarifying the VAT credit policy for advanced manufacturing enterprises. The announcement explains: 1) the “additional credit policy” that allows these enterprises to offset 5 percent of input tax deductible in the current period against VAT payable, from Jan. 1, 2023, to Dec. 31, 2027; 2) the definition of “advanced manufacturing enterprises” as encompassing certain high-technology enterprises; 3) calculation procedures for the additional credit, and the requirement for separate calculations from the super credit; 4) the restriction that enterprises can’t apply both additional VAT credits in a period; and 5) ...