Large hydropower enterprises usher in a new round of opportunities

The Ministry of Finance recently issued the "Notice on Value-Added Tax Policies for Large-Scale Hydropower Enterprises" to clarify the preferential VAT policies for large-scale hydropower enterprises. After the issuance of the new “Notice”, individual tax incentives that previously only targeted the Three Gorges and Gezhouba Hydropower Stations became “universal” policies. Yesterday, the staff of the National Taxation Bureau of the Three Gorges Dam area of ​​Yichang City went to Hubei Qingjiang Hydropower Development Co., Ltd., and brought good news for tax reduction and exemption for enterprises.

After the implementation of the new policy, sales of self-produced power products to hydropower stations with an installed capacity of more than 1 million kilowatts, from 2013 to the end of 2015, implement an extemporaneous refund policy for the portion of its VAT that actually exceeds 8%; from 2016 to At the end of 2017, the levy policy was applied to the portion of the VAT that actually exceeds 12% of its VAT.

Qingjiang Company is in line with the national new policy preferential standards. In 2013, it will be able to obtain a national tax rebate of about 100 million yuan, and in 2014, it is expected to receive a tax rebate of 150 million yuan. Yichang National Tax Department joint enterprises are carrying out tax calculations, which will simplify the tax rebate approval process and allow enterprises to enjoy the policy dividend as soon as possible.

The value-added tax of the hydropower industry has always been controversial. Prior to 2009, the hydropower industry did not receive VAT credits for one-off basic inputs, which was very different from the actual tax burden of other industries. As far as the basic industry is concerned, the value-added tax of the water company is 6%, the tax rate of the natural gas company is 13%, and the actual deduction is about 5%. The hydropower industry has reduced the tax burden by as much as 14% due to the late deduction. After the transformation and upgrading of value-added tax, some fixed assets were included in the scope of VAT deduction, and the tax burden of the hydropower industry declined.