VALUE-ADDED TAX

Tax Cut Policies Unveiled in Battle Against Epidemic Outbreak

17 February 2020

China has announced a raft of tax breaks to support efforts in containing the coronavirus outbreak. The policies – which took effect on 1 January 2020 and will remain in force until further notice – cover a number of areas, including enterprise equipment purchase, medical staff overtime and tax deductions for charitable donations. More

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China Introduces Enhanced 15% VAT Tax Credit for Consumer Services Sector

23 October 2019

A further 15% value-added tax (VAT) credit is to be offered to taxpayers in the consumer services industry. This latest tax reduction will apply for the period 1 October 2019 to 31 December 2021. More

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VAT Exemption for Small Businesses Extended Until December 2020

28 November 2017

The current VAT exemption enjoyed by businesses with monthly turnover of between RMB20,000 and RMB30,000 has been extended until 31 December 2020. More

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VAT Invoices Invalid Without Taxpayer Identification Number

15 June 2017

Any enterprise requesting a VAT invoice for a particular purchase is now obliged to provide the vendor with its taxpayer identification number / unified social credit code. The vendor must then record the relevant taxpayer identification number / unified social credit code in the Buyer’s Taxpayer Identification Number field when issuing the invoice. More

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13% VAT Charge Revoked as of 1 July

12 May 2017

The current 13% VAT charge will no longer be levied after 1 July this year. Instead, an 11% tax will apply to the sale or import of a number of goods, including agricultural products, drinking water, heating and liquefied petroleum gas (LPG). The change was announced in the Circular on Policies for Simplifying and Consolidating Value-Added Tax (VAT) Rates, jointly issued by the Ministry of Finance and the State Administration of Taxation. More

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State Council Updates VAT, Investment Incentives and Tax Deductions

25 April 2017

As part of continued moves to replace business tax with value-added tax (VAT), while streamlining the overall VAT structure, as of 1 July 2017, the four existing VAT brackets will be reduced to just three - 17%, 11% and 6%. The current 13% tax bracket is to be abolished, with the tax rate for such products as agricultural items and natural gas reduced from 13% to 11%. More

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Ministry of Finance Clarifies VAT Policy on Finance, Real Estate

04 January 2017

China’s Ministry of Finance and State Administration of Taxation have jointly released a circular clarifying value-added Tax (VAT) policy on finance, real estate development and education services (Cai Shui No.140 [2016]). More

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Resource Tax Reform in Full Swing after 1 July

24 May 2016

The Ministry of Finance and the State Administration of Taxation jointly announced on 10 May their plan to roll out the resource tax reform across China starting from 1 July 2016. More

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China Revises Criteria of Serious Tax Offences

06 May 2016

The State Administration of Taxation (SAT) recently issued the revised Measures for the Release of Information on Major Tax Violation Cases (for Trial Implementation). More

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New Legislation Aims at Lowering and Consolidating VAT Rates: MOF

19 April 2016

Shi Yaobin, vice-minister of the Ministry of Finance (MOF), revealed at a meeting on indirect tax reform (levying value-added tax in lieu of business tax) on 12 April that China will consider lowering and consolidating VAT rates at the time of introducing new VAT legislation. More

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