Ministry of Finance Clarifies Tax Issues for Imported Equipment - 财政部明确来料加工装配厂转型为法人企业进口设备税收问题
Released on July 16, 2009, and effective as of the same date
The Ministry of Finance clarifies that from July 1, 2009, to June 30, 2011, the non-priced equipment provided by the foreign party, which has been used as capital contribution by a processing enterprise for supplied materials processing trade to form a legal person enterprise, is allowed to be exempted from import duty and import value added tax if the conditions listed below have been met simultaneously:
1. the processing trade handbook has been filed before December 31, 2008, and;
2. the non-priced equipment was imported before June 30, 2009, and is still within the customs’ supervision period.
For other processing enterprises who have not met the above two conditions, the duty shall be paid unless the newly established legal person enterprise is engaged in a project that falls within the state encouraged industry catalogue or the predominant foreign invested industries in central and western areas catalogue.