China : State Council puts in force amendment to VAT regulations.
The State Council on Dec 1 issued a decree signed by Premier Li Keqiang, publicizing the content of a circular amending the previous interim VAT regulations and abolishing the business tax, effective immediately.
The amendment rectified nine articles and added a new one to the VAT regulations, resulting in a total of 28 articles. According to the new regulations, all units and individuals engaged in the sale of goods, provision of processing, repairs and replacement services, sales services, intangible properties, real estate, and the importation of goods within the territory of the Peoples Republic of China are taxpayers of the value-added tax, and should pay VAT in accordance with the regulations.
The revised version also detailed the VAT rate. For taxpayers engaged in the sale of goods, labor services, rental services for tangible properties, and the importation of goods, the tax rate will be 17 percent. Additionally, the VAT rate is 11 percent for taxpayers engaged in transportation sales, postal services, basic telecommunications, construction, rental services of immovable properties, real estate sales, land-use rights transfer, and selling or importing goods such as agricultural products, tap water, natural gas, coal products, books and electronic publications.
The tax rate is 6 percent for taxpayers selling services and intangible properties except those who are under special rules. Exporting goods will enjoy a no-tax status. The no-tax status will also be given to units and individuals based within the territory of the Peoples Republic of China engaged in cross-border sales of services and intangible properties according to the stipulations of the State Council. The new addition, which is the 27th article, stipulates that the final say on matters regarding VAT payments will be with the State Council or the Ministry of Finance, and the State Administration of Taxation with the consent of the State Council.
[c] 2017 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Date:||Dec 2, 2017|
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