Study On The Issue Of China’s Export Tax Rebate System

The export tax rebate system can avoid international double taxation, protect the faircompetition of the commodity in the international market, and maintain tax fairness betweencountries, which not only have been widely adopted by most countries, but also be permittedby the WTO. However, there is the risk of abuse, when the exporting country is providingsubsidies in the name of the export tax rebate. It is because of this delicate contact betweenthe export tax rebate system and subsidies, in the process of implementation of the export taxrebate system, particularly attention should be paid to, otherwise it may lead to accusations ofsubsidized exports.China’s export tax rebate system and the requirements of the WTO is still lagging behind,which is frequently be referred to as export subsidies in recent years, along with other subsidyissues and encountered WTO anti-subsidy complaints. In this paper, under the framework ofthe WTO Subsidies and Countervailing rules for perspective, analyze the existing problems ofChina’s export tax rebate system and learn from the experience of other countries on the basisof improvement, in order to circumvent the WTO anti-subsidy regulation.The paper is divided into four parts, totaling three thousand words.The first part is an overview of the export tax rebate and subsidies. First introduce relatedconcepts of export tax rebates and subsidies, characteristics, to lay the foundation for the laterexposition. Then briefly describes the relationship between the export tax rebates andsubsidies leads below.The export tax rebate system differs from the subsidies, but if abusedto produce the effect of subsidies to exporters, it will constitute subsidies.The second part is the regulation of the export tax rebate system under the WTOframework. The part of the combination on Subsidies and Countervailing rules of the WTO,as well as several case specific analysis of the export tax rebate system compliance with WTOrules, and under what circumstances would constitute subsidies sued. The final conclusion isthat: the export tax rebate is different from the subsidies, the WTO accepts it as the tools oftrade, but the indirect tax rebate or relief exceeds a certain limit, it will constitute subsidies.The third part is the Introduction of the export tax rebate system in France, South Korea,Switzerland, and China’s Taiwan region. Select a few representative export tax rebate systemto provide a reference for the improvement of China’s export tax rebate system. The history of the implementation of the export tax rebate system in France is relatively working well, theexport tax rebate system in South Korea is similar to ours, Switzerland’s trade in servicesexport tax rebate system more distinctive, Taiwan set stringent procedures to avoid export taxfraud.The fourth part is the improvement of China’s export tax rebate system. On the basis of abrief introduction of China’s export tax rebate system, combined with the front of the textanalysis and case studies, and pointed out several problems exist in China’s export tax rebatesystem, and suggestion to improve China’s export tax rebate system: Construction of theprinciple of neutrality and non-neutral principle phase combined with the export tax rebatesystem, the use of the export tax rebate system to adjust the export structure; clean up the taxconcessions and relief tax policy and strict distinction between direct tax relief and indirecttax relief; develop export tax rebate the Basic Law for the command, administrativeregulations and departmental rules and regulations for the supplement, the substantive lawprogram law compatible legal system of export tax rebates; strengthen the export tax rebateon the service industry, to take full advantage of the export tax rebate privileges conferred bythe WTO; strengthen the supervision of the enforcement of the export tax rebate, to preventthe export tax fraud less levy multi withdrawal behavior. China’s export interests in order toachieve balance between the interests, without violation of WTO rules.