China issued new Shanghai Diamond Exchange diamond and tax policy - Jewelry Industry
Regulate domestic Diamond The market for diamond industry China issued new Shanghai Diamond Exchange diamond and tax policy The national diamond industry and the general concern of foreign diamond traders and diamond on the Shanghai Diamond Exchange in China's new tax policy, recently approved by the State Council promulgated. Shanghai Diamond Exchange, according to the Joint Management Office on June 11 released the information before the Ministry of Finance, Customs Department, the State Administration of Taxation issued a notice, in order to regulate the domestic diamond market, balancing the tax burden of similar goods by the State Council approved the adjustment of China Shanghai Diamond Exchange diamond and related tax policies, the new policy from July 1, 2006 from the Executive.
According to the Shanghai Diamond Office person in charge, under the "Ministry of Finance, Customs Department, the State Administration of Taxation on Adjusting the Shanghai Diamond Exchange diamond and the Notice of Tax Policy" (hereinafter referred to as "Notice"), the introduction of The new policy includes the following four areas:
First, under the general trade of diamonds on import VAT. The new policy states: "The taxpayers in Shanghai Diamond Exchange rough diamonds sold to the domestic market, exempt from import VAT; taxpayers from the Shanghai Diamond Exchange diamond sold in the domestic market of finished products, the actual tax burden of import VAT more than 4% of the part of the implementation is to be used by the Customs. "At present, through the Shanghai Diamond Exchange, after customs clearance to enter the domestic market, all kinds of diamond import VAT rate is 17%. In other words, implementation of the new policy, rough diamonds, polished diamond imports actual VAT tax will be reduced to zero and 4%. Meanwhile, the Ministry of Finance three departments "notification" is also clear: "to enter the domestic aspect of the taxpayers with the tax payment certificate issued by the Customs indicate the amount of deductible VAT input tax money."
The second is the general trade export enterprises under the export tax policy related to diamond products. The new policy states: "The following diamond export enterprises exported products exempt from VAT, the corresponding input tax refund or credit shall not be transferred to the cost. Specific product are: tax serial number 71021000,71023100,71023900, 71042010,71049091,71051010,71131110,71131911,71131991,71132010,71162000. "
Three diamond mining companies on the domestic sales of rough diamonds, self-produced value-added tax policy. The new policy states: "The domestic diamond mining companies through the Shanghai Diamond Exchange, the implementation of rough diamonds sold self-produced value-added tax exemption policy; not sold through the Shanghai Diamond Exchange, and pay VAT."
Fourth is the finished product on the domestic processing of the diamond tax policy. The new policy states: "The domestic processing of finished diamonds, through the Shanghai Diamond Exchange sales in the domestic marketing chain are exempted from VAT; not sold through the Shanghai Diamond Exchange, part of the domestic sales by 17% value-added tax rate tax. "The new policy also states:" The domestic processing of finished diamonds, when the Shanghai Diamond Exchange, deemed export, shall not be refunded; from the Shanghai Diamond Exchange to re-enter the domestic market, the import VAT more than the actual tax burden 4% of the part of the implementation is to be used by the Customs. "
The Ministry of Finance and other third sector "notice" stressed: "on the Shanghai Diamond Exchange diamond bonded policy and other tax policy, based upon the existing provisions." In this regard, said a senior official of Shanghai Diamond Office, the Shanghai Diamond Exchange of the transaction is bonded within the diamond trade, is not value-added tax; existing diamond processing trade on the national management practices and tax policies, etc., who will continue to implement.
Shanghai Diamond Office official said that further adjustments to the state and the Shanghai Diamond Exchange diamond-related tax policy is to support and promote the development of China's diamond industry an important measure. New policy for diamond import and export of China's normative order and the domestic diamond market, to combat the illicit diamond trade, improve the business environment and promote the healthy development of China's diamond industry, will have a very important role.
New diamond tax policy in China will implement the relevant state departments are speeding up the development of relevant implementation details and operational methods. It is understood that the Ministry of Finance and other third sector "notice" clear: diamond import VAT is to be used for specific operational methods developed by the Customs Department; on the domestic part of the diamond collection management practices and value-added tax VAT Invoice Management Measures shall be formulated separately by the State Administration of Taxation.
Person in charge of the Shanghai Diamond Office, since 2000, since the founding of the Shanghai Diamond Exchange, China was in 2001 and the Shanghai Diamond Exchange diamond tax policy once the adjustment, through the Shanghai Diamond Exchange to enter the domestic market Diamond, duty-free (the original rate of 3% of rough diamonds, polished 9%)
Consumption Tax Halved (from 10% to 5%) after the move by the import-consumption sectors; the relevant departments under the State, June 1, 2002 throughout the country under the general trade of diamond imports and exports concentrated in the Shanghai Diamond Exchange Customs clearance. In recent years, these policies and regulations to promote China's diamond imports and exports and regulate the domestic market has played a positive role. In 2005, China's general trade import and export of diamonds under the bonded transactions totaled 410 million U.S. dollars, VAT collection diamond imports 162 million over the previous year were 11.4% and 23.5%.
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