China News Service, Beijing, September 29 (Reporter Zhao Jianhua) Data released by the State Administration of Taxation of China on the 29th showed that since the implementation of the new policy for VAT refunds one year ago, a total of 281.8 billion yuan (RMB, the same below) has been processed across the country. From the perspective of the flow of tax refund funds, four key industries including manufacturing, scientific research, software, and ecology have benefited significantly, and the targeted support effects of policies have been fully released.
On August 22, 2025, the Ministry of Finance and the State Administration of Taxation issued an announcement to further improve the policy for the refund of excess value-added tax at the end of the period. According to the announcement, starting from September last year, four industries, including manufacturing, scientific research and technical services, software and information technology services, and ecological protection and environmental management, will be fully refunded on a monthly basis for the end-of-period retained tax credits, and the tax refund ratios and conditions for some industries will be adjusted to continue to refine policy details and accurately empower key areas.
In the past year since the New Deal was implemented, four key industries including manufacturing have enjoyed a total of 212 billion yuan in retained tax refunds, accounting for 75.2% of the national retained tax refunds. Liang Ji, director of the Public Income Research Center of the Chinese Academy of Fiscal Sciences, analyzed that the adjustment and improvement of the retained tax credit and refund policy highlighted the support orientation for national development strategies such as manufacturing, technological innovation and green development, and improved the accuracy of the policy.
Tax rebates will empower enterprises to tackle key technological problems and innovate in research and development. Among them, the manufacturing industry enjoys the largest scale of retained tax refund, reaching 191.4 billion yuan, accounting for 67.9%.
In Liuzhou, Guangxi, a battery company has continued to expand its production capacity in recent years, with eight production lines operating at full capacity. In the first half of the year, overseas revenue exceeded 10.4 billion yuan, a year-on-year increase of 22.66%. The expansion of production lines and iterative upgrades of technology have brought about large investments in the purchase of intelligent equipment, resulting in a large amount of residual tax credits at the end of the period. The local tax department came to provide policy guidance and helped the company successfully handle a tax refund of 30.76 million yuan.
In Shanghai, a company engaged in the research and development of human vaccines had a lot of retained tax credits that could not be used due to the long vaccine development cycle, heavy investment in equipment, and heavy capital occupation. Benefiting from the excess tax refund policy, in January this year, this company successfully processed an excess tax refund of 7.31 million yuan. Wang Yao, the company’s assistant to the general manager and head of finance, said that this is equivalent to 39.3% of the company’s total expenses in the first eight months of this year, accounting for 53.8% of labor and rental expenses, and almost covers the company’s core rigid expenses for more than half a year.
