In May 2016, value-added tax (‘VAT’) was reformed and expanded to several key sectors. The reforms unifies all sectors within a disruptive VAT system. It provides incentives to distribute the tax burden down the VAT chain. VAT unification stands to decrease the payable VAT and improve cash flow for registered taxpayers. VAT is offset by…
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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…
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