The three departments clarified matters related to the formulation of the list of advanced manufacturing enterprises enjoying the VAT additional deduction policy in 2024

General Office of the Ministry of Industry and Information Technology, General Office of the Ministry of Finance, General Office of the State Administration of Taxation

Notice on matters related to the formulation of the list of advanced manufacturing enterprises enjoying the VAT additional deduction policy in 2024

Department of Industry and Information Technology Liancai Letter [2024] No. 248

The competent departments of industry and information technology and the departments (bureaus) of finance of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan, and the taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan of the State Administration of Taxation:

In order to implement the deployment requirements of the Central Economic Work Conference and the Government Work Report, support scientific and technological innovation and the development of the manufacturing industry through structural tax and fee reduction policies, and do a good job in formulating the list of advanced manufacturing enterprises enjoying the VAT plus deduction policy in 2024 (hereinafter referred to as the 2024 list), according to the relevant provisions of the Announcement of the Ministry of Finance and the State Administration of Taxation on the VAT Plus Deduction Policy for Advanced Manufacturing Enterprises (Announcement No. 43 of 2023 of the Ministry of Finance and the State Administration of Taxation), The relevant matters are hereby notified as follows:

1. The list referred to in this notice refers to the list of advanced manufacturing enterprises that enjoy the VAT plus deduction policy mentioned in Announcement No. 43 of 2023 of the Ministry of Finance and the State Administration of Taxation. Advanced manufacturing enterprises refer to the general taxpayers of the manufacturing industry in high-tech enterprises (including their unincorporated branches, hereinafter referred to as branches). High-tech enterprises refer to high-tech enterprises recognized in accordance with the notice of the Ministry of Science and Technology, the Ministry of Finance and the State Administration of Taxation on revising and issuing the Administrative Measures for the Identification of High-tech Enterprises (Guo Ke Fa Huo [2016] No. 32).

　　2. The competent departments of industry and information technology of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan (hereinafter referred to as "local competent departments of industry and information technology") shall determine the list in conjunction with the departments of science and technology, finance and taxation at the same level.

　　(1) Enterprises entering the 2024 annual list shall have the qualification of high-tech enterprises in 2024, and during the period from January 1 to December 31, 2023, the total sales generated by the enterprise engaged in manufacturing business account for more than 50% (exclusive) of all sales, and all sales and sales of manufacturing products do not include VAT. For the determination of the attributes of the manufacturing industry, please refer to the category of "manufacturing" (category C) in the Industrial Classification of the National Economy (GB/T 4754-2017).

　　(2) For enterprises that entrust external production and processing, and are not engaged in the production and processing of products themselves, the relevant sales shall not be included in the sales of manufacturing products; If the entrusted enterprise meets the relevant provisions of this notice, the processing fee of the entrusted enterprise can be included in the corresponding sales amount of the manufacturing business.

　　(3) The enterprise shall log in to the high-tech enterprise identification management network (http://www.innocom.gov.cn/) and submit the application materials, and enjoy the policy within the prescribed time limit after the one-time declaration and review is passed.

　　Third, the time of enterprise declaration

(1) For enterprises that have been included in the "List of Advanced Manufacturing Enterprises Enjoying the VAT Plus Deduction Policy in 2023" and whose current high-tech enterprise qualifications are still valid, the policy will be suspended from June 30, 2024. Those who intend to continue to apply for inclusion in the 2024 list can submit their applications from the 1st to the 10th of each month from July 2024, with the deadline of April 10, 2025.

　　(2) Enterprises that apply for new applications to be included in the 2024 annual list can submit applications from the 1st to the 10th of each month from September 2024, and the deadline is April 10, 2025.

　　Fourth, the time limit for enjoying the policy

(1) Enterprises with high-tech enterprise qualifications valid for the whole year of 2024 shall enjoy the policy from January 1, 2024 to April 30, 2025.

　　(2) Enterprises whose high-tech enterprise qualifications expire in 2024 and have not obtained new high-tech enterprise qualifications in 2024 will enjoy the policy from January 1 to December 31, 2024.

　　(3) Enterprises whose high-tech enterprise qualifications expire in 2024 and obtain new high-tech enterprise qualifications in 2024 will enjoy the policy from January 1, 2024 to April 30, 2025.

　　(4) Newly recognized high-tech enterprises in 2024 will enjoy the policy from January 1, 2024 to April 30, 2025.

　　5. When a branch applies for the policy, the head office shall fill in the relevant information at the same time. In the case that the head office has the qualification of a high-tech enterprise and the industry belongs to the manufacturing industry:

(1) For VAT summary tax enterprises, the head office shall calculate the sales volume and proportion of the branches, and the branches shall not enjoy the policy separately, and the local competent departments of industry and information technology where the head office is located, together with the science and technology, finance and taxation departments at the same level, shall determine whether the head office can enjoy the policy in accordance with the provisions of this notice.

　　(2) For enterprises that pay non-VAT aggregate taxes and the industry to which the branch belongs is manufacturing, the head office and the branch shall calculate the sales volume and proportion respectively, and the local competent department of industry and information technology where the head office and branch office is located, together with the science and technology, finance and taxation departments at the same level, shall determine whether the head office and the branch can enjoy the policy in accordance with the provisions of this notice.

　　6. The local competent departments of industry and information technology should smooth the information sharing channels with the science and technology, finance and taxation departments at the same level, improve the work coordination mechanism, simplify the tax declaration process of enterprises, conscientiously organize and implement it, and ensure that the policies are steadily promoted and accurately implemented.

　　(1) The local competent department of industry and information technology may organize the competent department of industry and information technology at the lower level to review and recommend the list of enterprise declaration information in conjunction with the science and technology, finance and taxation departments at the same level.

　　(2) The local competent department of industry and information technology shall review whether the enterprise is engaged in the manufacturing industry, the science and technology department or the competent department of industry and information technology according to its duties on the qualification of the enterprise as a high-tech enterprise (subject to the certificate of high-tech enterprise), the sales data of the enterprise by the tax department and whether it is a general taxpayer, etc., and shall indicate the reasons for the failure of the review.

　　(3) In principle, the local competent department of industry and information technology shall send the list of enterprises approved by the end of each month from July 2024 to the tax department, and the local tax department shall, in principle, feedback the implementation of the policy and the effectiveness of tax reduction to the local competent department of industry and information technology before the end of each month from August 2024.

　　7. If the enterprise changes its name, moves as a whole or has major changes related to the recognition conditions, it shall report the relevant situation and go through the formalities to the local high-tech enterprise certification management agency in accordance with the relevant requirements of the National Science and Technology Development [2016] No. 32 document, and then apply for the policy after the relevant information change is completed by the high-tech enterprise identification management network, and at the same time explain the situation to the local competent department of industry and information technology and provide relevant supporting materials. The tax department determines whether the enterprise meets the conditions for continuing to enjoy the policy after the change. Enterprises that have completed the overall migration shall re-apply for the policy at the place where they move in.

　　8. In accordance with the principle of "voluntary declaration, true occurrence, and retention of relevant materials for future reference", the reporting enterprise shall be responsible for the authenticity of the materials and data provided, and promise that if untrustworthy conduct occurs, it will be handled by the relevant departments in accordance with laws, regulations, and relevant state provisions. The local departments in charge of industry and information technology, in conjunction with the departments of science and technology, finance, and taxation at the same level, are to strengthen routine supervision of the enterprises on the list in accordance with their duties and division of labor. In the process of supervision, if it is found that the enterprise has obtained tax reduction and exemption qualifications with false information, the tax department shall recover the tax reduction and exemption it has enjoyed, and deal with it in accordance with the relevant provisions of the Tax Collection and Administration Law. For enterprises that no longer meet the conditions for enjoying the policy due to the disqualification of high-tech enterprises and other reasons, the local competent department of industry and information technology shall form a list of enterprises that no longer enjoy the policy and send it to the tax department at the same level, and the enterprises in the list will no longer enjoy the policy from the month when they do not meet the policy conditions.

　　Attachments: (omitted)

1. 2024 Advanced Manufacturing Enterprises VAT Plus Deduction Policy Declaration.wps

2. List of advanced manufacturing enterprises enjoying the VAT plus deduction policy in the year.wps

3. List of VAT additional deduction policies for advanced manufacturing enterprises that no longer enjoy.wps

General Office of the Ministry of Industry and Information Technology

General Office of the Ministry of Finance

General Office of the State Administration of Taxation

June 24, 2024

Source: State Administration of Taxation