The latest tax policy in China will enable trade service companies to apply for exemptions for export goods or tax rebates. The new policy will help businesses to expand trade growth, as well as encourage domestic small and medium-sized companies to venture into the global market.


Trade service companies will now be able to apply for tax rebates after they sign contracts with small and medium-sized enterprises to sell their goods abroad. Xiao Feng, the deputy manager of Shenzhen Onetouch Businesses Service Co. said, “The policy represents a big change in China’s export taxation reform. It means that export rebate businesses could be outsourced to trade service companies”. The new policy is expected to come into effect on April 1, 2014 and has been issued by the State Administration of Taxation early in March 2014.

The taxation authority of China in the past adopted a very careful approach towards the tax rebate business which is conducted by service trade companies. The measures are being taken after it was found that some agencies were involved in tax fraud cases in recent times.

The increase in the momentum of foreign trade policy of China during the first half of 2013 had raised questions that the companies might have misreported the exports to obtain tax rebates. This promoted the authorities to create a series of new rules to check trade flows.

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