2-year VAT exemption on residential property sales on real estate crisis An economic downturn and ageing pollution has put huge pressures on China’s dominant real estate sector. This is threatening domestic economic stability and wider global markets. To support the market, from 1 December 2024,
Central Committee reconsiders VAT base and rates at Third Plenum as property taxes fall China’s rulers are set for their third plenum in the current 5-year political planning cycle next month. Typically, the third plenum is reserved for economic reforms as part of the 5-year
Final provinces join digital e-invoicing (e-fapiao) pilot All Chinese provinces have now launched their digitalise e-fapiao programmes. Last month, Anhui, Beijing, Guizhou, Hunan, Ningxia, Qinghai and Shandong joined the nation-wide trials which has started in 2021. Tibet, the final province, joined 1 December 2023. These
New VAT law to alleviate slow credit refunds China’s proposed new VAT law is undergoing a second reading for the Standing Committee of the National People’s Congress. A major pillar is how to improve the poor record of VAT credit refunds for taxpayers as well
Aug 2023: Ministry of Finance provides SMB VAT relief for further 5 years as growth slows The Chinese Ministry of Finance and State Administration of Taxation have extended the exemption for small businesses from the 3% VAT rate. Also, the alternative cash-flow based VAT accounting
New draft law indicates foreign providers will face digital services VAT responsibilities In January, Chinese draft VAT law was issued. Aside from consolidating many existing laws, it includes a shift towards imposing VAT compliance obligations on non-resident providers of digital services. It talks of VAT
New draft VAT Law consolidates existing rules, adding major reforms to bring into line with OECD guidelines China has issued a new draft VAT Law to consolidate a number of existing VAT regulations, but also to continue the development of the rules inline with the
Struggling economy given tax boost as 3% VAT on small businesses temporarily withdrawn for 2023 and replaced with 1% rate On 9 January 2023, the Chinese Ministry of Finance provided fiscal relief for small businesses by reducing the Value Added Tax rate applicable to small
13 new regions join mandatory e-invoice (e-fapiao) pilot in August 2022; full roll out by 2023 28th Oct 2022 update: the southwestern Chinese province of Sichuan has joined the e-fapiao pilot. China’s State Taxation Administration (‘STA’) is continuing to expand its introduction of the special e-fapiao e-invoice system,
Qualified enterprises have 10% or 15% additional deduction of creditable input VAT into 2023 China’s State Council has indicated that it will extend the right for input credits for a number of key services sectors. The aim is to continue to support businesses as China
