Pursuant to the Circular of the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation on Implementing Nationwide the Pilot Program of Export Tax Refund Policies for Goods under Financial Leasing (Cai Shui No. 62), the State Administration of Taxation formulated the Measures for the Administration of Export Tax Refund for Goods under Financial Leasing (hereinafter, the "Measures"). The Measures, as promulgated, entered into effect on October 1, 2014.

The Measures provide that application may be filed for export tax refund for goods under financial leasing after the tax registration and export tax refund (exemption) qualifications of a financial lessor are determined by the local competent authority under the State Administration of Taxation. To handle formalities for determination of tax refund (exemption) qualifications, a financial leasing agreement and proof evidencing qualifications for financial leasing business shall be submitted in addition to materials required for the determination of general tax refund (exemption) qualifications.

The Measures also stipulate specific requirements for tax refund application for goods under financial leasing. First, goods under financial leasing under different financial leasing agreements shall be separately applied. Second, the "types of business for which tax refund (exemption) is sought" in the statement of an application shall be specified as "RZZL." Finally, the materials to be submitted for tax refund application shall be specified.

In addition, penal provisions relating to illegal acts conducted by financial lessors in order to receive tax refunds by fraudulent means such as misrepresenting tax refund qualifications, forging or altering financial leasing agreements or providing false tax refund application materials are also included in the Measures.