Chinese Government broadens tourist tax free refund scheme
By Doug Newhouse |
The Chinese government has announced that foreign visitors to China and residents of Hong Kong, Macau and Taiwan will soon be able to claim back tax refunds in China.
The announcement was made last week, although full details have yet to be released by the State Administration of Taxation and the General Administration of Customs on the exact rules and regulations surrounding the new measure.
The Ministry of Finance stated last Friday that the move is designed to stimulate domestic consumption and encourage Chinese nationals to take vacations within the country, rather than overseas.
The Chinese Government’s China National Tourist Organisation subsidiary and its Xinhua News Agency arm both report that those who qualify for these 11% tax free refunds also include nationals living in the Special Administrative Regions of the People’s Republic of China in both Macau and Hong Kong – plus Taiwanese citizens.
These rebates will apply to purchases made at department stores that will be participating in the scheme, provided these customers have not lived on the Chinese Mainland for more than 183 days.
MINIMUM PURCHASE EQUIVALENT TO $82
The Chinese government has also set a minimum purchase level of around CNY.500 ($82) for shoppers to qualify for the refund, with one purchase allowed per day.
Any merchandise can be purchased, provided it is legally available in China and sold by an approved retail organisation. The government plan is that qualifying refunds will be paid out in cash on the spot, or by bank transfer.
The scheme is a direct offshoot from the CNY.800 ($128) tax free allowance introduced on Hainan Island in 2011. This has been hugely successful for the China Duty Free Group’s Haitang Bay downtown store, which is now held up as the world’s largest duty free outlet (see top image).
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