In May 2016, value-added tax (‘VAT’) was reformed and expanded to several key sectors. Including real estate and construction financial services and insurance and lifestyle services. The reforms serve to unify all sectors within a disruptive VAT system, providing incentives to distribute the tax burden down the VAT chain. In practice, VAT unification stands to…
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Recently, small and micro China enterprises saw preferential tax relief under the promulgation of the Notice on Implementing the Policy of Inclusive Tax Relief for Small Profit Enterprises Circular, Caishui No. 13 [2019] (Circular 13). What’s more, provisions in Circular 13 further exempt small-scale taxpayers from value-added taxes, provided their monthly sales fall below RMB…
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This post is part of Horizons ongoing sharing of important information related to the implementation of China VAT reforms. China business enterprises within 17% and 11% value-added tax rates subject to a 1% reduction On the 4 April 2018, the Ministry of Finance and State Administration of Taxation jointly announced (Cai Shui [2018] No. 32) that…
Read moreWith important policy implementations recently being made by China’s State Administration of Taxation regarding China VAT general invoices, we felt it would be appropriate to offer a Chinese fapio (发票) refresher post — or more accurately, provide a few links to posts explaining the fapio system. The Chinese fapio is a legal receipt that serves as proof…
Read moreThe Notice of Overall Pilot Execution of Transforming Business Tax into Value-added Tax — titled Caishui [2016] No. 36, B2V Reform — was jointly issued by the PRC Ministry of Finance (MOF) and the State Administration of Taxation (SAT) on 18 March 2016. The circular, effective from 1 May 2016, announced the expansion of Value…
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