China implements the export duty-free policy for export goods, that is, the tax rate is 0. But in practice, it is not a real zero tax rate, but a low tax rate. For example, the tax rate is 17%, but the tax refund is not calculated according to 17% in actual operation. There is also a tax refund rate of 13%, and the other 4% is the value-added tax that should be paid, which is called "tax exemption and deduction are not allowed" in the tax law.

As the name implies, "tax exemption is not exempt" means that the tax amount of "tax exemption is not exempt" can be deducted.

First, the tax rebate rate is always less than the tax rate, so there is a difference between the tax rebate rate and the tax rate. The export sales revenue multiplied by this difference rate means that the current tax reduction and exemption will not be exempted, and the input tax will be transferred out. This means that this part of the tax can not be deducted from the domestic sales tax, nor can it be refunded. The calculation formula is:

No tax reduction or exemption allowed = FOB export goods * RMB foreign exchange rate * (export goods tax rate-export goods tax rebate rate)-No tax reduction or exemption allowed.

Second: China does not levy value-added tax and consumption tax on feed processing import business. The value of these imported materials has been included in the export sales when the materials are re-exported, and this part of the tax is included in the calculation of "tax exemption and deduction are not allowed", so it must be deducted. The calculation formula is:

Tax exemption and tax refund shall not be reduced or exempted. Tax deduction = calculated price of imported materials for duty-free processing * (tax rate 17%- tax refund rate 13%).