China's Export Tax Rebate Study

Export tax rebate is a tax policy that is considered to encourage exports of one country. It is generally accepted by most countries in the international trade and allowed by WTO. It has been 20 years since 1985 in which China began to implement its export tax rebate that was designed to support export trade and increases the international competitiveness of companies involved in this business. During this period, many reforms to the export rebate system have been carried out, and rate of tax rebate and polices are adjusted constantly. As a result, our export tax rebate system develops better and better. However, there are still many problems that should be solved in the system, and with the development of the world economy, some new problems appear so that we must find solutions. Therefore, how to solve these problems to make our rebate system perfect, how to make export trade and numerous export enterprises of China benefit from the scientific system, are the focal points of this thesis and the aim of studying on export tax rebate.The foundation and object of export tax rebate is domestic products value-added tax (VAT) imposed and consumption tax in the course of producing and circulating, China relies chiefly on VAT, so VAT is also the primary study object of this thesis. Export tax rebate is a basic system of the foreign trade system of China, and is one of important tools of macroscopic economy regulations. It works mainly by interacting with both macroscopic and microscopic economy. On one hand, the export rebate policy is made and implemented according to the development of domestic macroscopic economy and the operation reality of local enterprises in a country. On the other hand, during the process of its implementation, the export rebate policy affects the operation of enterprises directly so as to affect the macroscopic economy indirectly. That is export rebate working mechanism, and study on it can help to improve our export rebate system radically. A perfect legal framework is the basis for formulating, implementing and perfecting the export rebate system, so studying the relative legal problems of export tax rebate is one of the focal points of this thesis.The rates of return tax of export are constantly reduced recent years, even some rates have been changed into zero, which makes many people believe that the export rebate system will be cancelled. Therefore study on whether this system will be cancelled or not is one of goals of this thesis. After theoretical study and experience of other countries for reference, it is can be concluded that it is impossible for China to cancel the export tax rebate system now and the system only should be perfected further. And it is discussed from three aspects that how to perfect this system further in this thesis, including the relative VAT system, management system and legal framework.This thesis is divided into six chapters in all. Chapter One is a general theoretical analysis of export tax rebate, which mainly introduces the definition, range, methods and basic principles of export tax rebate, and compares the export tax rebate with other measures that encourage exports. Chapter Two is an analysis of its effect on the macroscopic economy, industries and enterprises. Chapter Three is the study on laws related to export tax rebate. At first the relative laws and regulations both in China and in the world are explained, and then the relative legal responsibilities in China are discussed. Chapter Four is international comparison of export tax rebate and reference. Comparing different countries' export rebate systems whose histories are long and which are well developed, this thesis gives some references for use. Chapter Five is about the development of Chinese export rebate system and the problems that exist in the system. The develop process of Chinese export rebate system since its establishment is generally described, and then some problem happened during the process and their developing trends are analyzed in this chapter. Chapter Six is how to perfect our export tax rebate system further. Here some measures and suggestions are given in order to solve those problems discussed in Chapter Five. Study methods mainly used in this thesis are theoretical reasoning and comparison reasoning methods, and also some graphs and data are used for demonstration. The innovation of this thesis lies in two points. Those are as follows: One is that it makes an analysis of export tax rebate effect on macroscopic economy, industries and enterprises; the other one is that the big change for export tax rebate in 2007 is discussed in this thesis.