On January 7, 2015, SAT issued the Administrative Measures on Categorization of Enterprises Qualified for Export Tax Exemption and Refund ( “the Measures”), applicable to export enterprises registered with the export tax exemption and refund status (“export enterprises”). The Measures will come into effect on March 1, 2015.

The Measures classify export enterprises into four categories and establish the applicable criteria for categorization purposes (such as asset status,  credit grades as taxpayers and internal risk control). After the export enterprises have been categorized, tax authorities will adopt differentiated administrative measures.

For example, Class One enterprises, which are those with the best tax compliance credit, will benefit from a more relaxed supervisory procedure. These enterprises can make the formal declaration when the electronic data on export tax exemption and refund passes the pre-review stage, and they will not need to submit original documents as long as they keep the documents at the company. The tax authorities will prioritize these companies’ tax refunds, designating a green channel to deal with their export tax refund problems. Class Four enterprises will go through more extensive and in-depth approval procedures.

The categorization assessment will be made yearly, within one month after the enterprise tax credit rating assessment result is announced.

Date of issue: January 7, 2015. Effective date: March 1, 2015.