IC companies can purchase equipment tax rebate will help increase cash flow

The Ministry of Finance and the State Administration of Taxation jointly issued a document to resolve the problem of the use of value-added tax input tax caused by purchases of equipment by major IC project companies, and decided to refund the VAT at the end of the period due to the purchase of equipment and announced the compliance. A list of companies approved by the State for major integrated circuit projects, among which there is no shortage of companies related to listed companies. Insiders pointed out that the amount returned will help companies increase cash flow.

The Circular on Refunding the Final Value of Value Added Tax for Procurement Equipment Refunded by IC Enterprises issued jointly by the Ministry of Finance and the State Administration of Taxation pointed out that in order to implement the "Circular of the State Council on Printing and Distributing Certain Policies to Further Encourage the Development of the Software Industry and the Integrated Circuit Industry" (the State) Issue No. [2011] No. 4) Relevant requirements to resolve the issue of the use of VAT input tax due to purchasing equipment of major IC project purchasers, and decided to refund the VAT at the end of the period of value-added tax resulting from the purchase of equipment.

For the calculation of the refundable purchase tax credit for purchase equipment, the notice is divided into two parts to indicate: First, the input tax for the equipment purchased by the company in the current period is greater than the “deductible tax at the end of the period” of the current VAT tax return, which shall be refunded in the current period. The tax credit for incoming equipment is the tax credit for the period ending; Second, if the input tax for equipment purchased in the current period is less than the “tax deductible tax at the end of the period” of the current year’s VAT tax return, the amount of purchase tax for the equipment purchased in the current period is the current purchase. Incoming equipment input tax.

In the list of enterprises that are in line with the national approved major integrated circuit projects, there are no shortage of listed companies' "shadows", including listed company controlled subsidiaries, affiliated companies, and hosting companies. Such as Beijing BOE Display Technology Co., Ltd., Hefei Xin Ye Optoelectronics Technology Co., Ltd. and Hefei BOE, are BOE A holding or shareholding; Nanjing Zhongdian Panda LCD Technology Co., Ltd. is a holding subsidiary of East China Science and Technology; Xiamen Tianma Microelectronics Co., Ltd. is the company hosted by Shanghai Tianma Microelectronics Co., Ltd., a subsidiary of Shenzhen Tianma A Company; Shenzhen Huaxing Optoelectronics Technology Co., Ltd. is a holding subsidiary of TCL (Weibo) Group.

BOE A enjoyed similar benefits before. In November 2010, BOE A said that the company received the “Notice on Returning Value-added Taxes for Value-added Tax for Imported Equipment from Certain Projects” issued jointly by the Ministry of Finance and the State Administration of Taxation. The company’s wholly-owned subsidiary, Hefei, was issued by the State Administration of Taxation of the Ministry of Finance. The amount of tax refund for imported equipment for the 6th generation TFT-LCD production line project invested by BOE in Hefei, Anhui Province, can be refunded. After the company estimates, it is estimated that the amount of tax refund that can be applied for is approximately RMB 1.6 billion.

Analysts pointed out that before this was the tax refund for imported equipment can be refunded, and this time in order to further encourage the development of integrated circuit industry, the purchased equipment can also apply for refund of tax credits, which will help increase the company’s cash flow. .