Preferential tax policies for renewable resources companies

Legal analysis: First, the policy of "sales of waste materials purchased by waste materials recycling business units are exempt from value-added tax" and "the value-added tax of production enterprises can be deducted from the input tax according to the amount 10% indicated on the ordinary invoice issued by waste materials recycling business units and supervised by the tax authorities" is cancelled. 2. Units and individuals selling renewable resources shall pay value-added tax in accordance with the Provisional Regulations on Value-added Tax in People's Republic of China (PRC) (hereinafter referred to as the Regulations on Value-added Tax), the Detailed Rules for the Implementation of the Provisional Regulations on Value-added Tax of the People's Republic of China, the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China. However, individuals (excluding individual industrial and commercial households) selling their waste materials are exempt from VAT. When purchasing renewable resources, the general VAT taxpayer shall deduct the input tax with the deduction voucher stipulated in the VAT Regulations and its detailed rules, and the original special invoice printed with the words "waste materials" will cease to be used and will no longer be used as the VAT deduction voucher.

Legal basis: Provisional Regulations of People's Republic of China (PRC) Municipality on the Administration of Tax Collection.

Article 6 A taxpayer engaged in production and business operation, carrying out independent economic accounting and approved by the administrative department for industry and commerce shall apply to the local tax authorities for tax registration within 30 days from the date of obtaining the business license. Other units and individuals with tax obligations, except those that do not need to go through tax registration according to the provisions of the tax authorities, shall go through tax registration with the local tax authorities within 30 days from the date when they become legal taxpayers according to the provisions of tax laws and regulations.

Article 8 When applying for tax registration, taxpayers shall submit the application registration report and relevant approval documents, and provide relevant certificates at the same time. The competent tax authorities shall, after examining the reports, documents and certificates listed in the preceding paragraph, register them and issue them with tax registration certificates. The tax registration certificate is for taxpayers' use only and may not be lent or transferred. The contents of tax registration include: the taxpayer's name, address, ownership form, affiliation, mode of operation, business scope and other related matters.