China alert - Issue 38, October 2011
The Ministry of Finance (MoF), the Ministry of Commerce (MOFCOM), the General Administration of Customs (GAC) and the State Administration of Taxation (SAT) jointly issued Cai Shui  No. 88 (Circular 88). Circular 88 stipulates the continuation of the relevant import tax exemption on purchases of certain R&D equipment and devices by foreign invested R&D centres and the Value Added Tax (VAT) refund on purchase of domestically-manufactured equipment available for domestic and foreign invested R&D institutions. This exemption was specified in a previous circular, Cai Shui  No.115 (Circular 115). Circular 88‘s effective period is from 1 January 2011 to 31 December 2015.