Three Departments to Clarify Matters Concerning the Formulation of the List of Manufacturing Enterprises Eligible for VAT Super-deduction Policy in 2024

Three departments, including the Ministry of Industry and Information Technology (MIIT), have jointly released the Circular on Relevant Matters Concerning the Formulation of the List of Advanced Manufacturing Enterprises Eligible for VAT Super-deduction Policy in 2024 (the "Circular").

The list mentioned in the Circular refers to the list of the enterprises engaged in advanced manufacturing eligible for value-added tax (VAT) super-deduction policy specified in Announcement of the Ministry of Finance and the Ministry of State Taxation Administration [2023] No. 43. The industry and information technology authorities at the provincial level and in the cities specifically designated in the state plan shall determine the list in conjunction with their respective departments of science and technology, finance, and taxation at the same level. The Circular specifies that any enterprise to be included in the list in 2024 shall qualify as a high-tech enterprise during 2024, and from January 1 to December 31, 2023, the sales revenue generated from its manufacturing activities shall account for more than 50% (exclusive) of its total sales revenue, with VAT excluded in both total sales revenue and sales revenue from manufacturing products. The Circular also stipulates the declaration period for enterprises and the duration of policy benefits.



(Source: https://www.miit.gov.cn/zwgk/zcwj/wjfb/tz/art/2024/art_38109f52a9a749d0a652ad5d1a2f0148.html)

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