Dec. 3 – The new issue of China Briefing Magazine, titled Revisiting China’s Value-Added Tax Reform, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the month of December.
As China’s economy develops, its tax regime has also continued to evolve as the government strives to create a system that best promotes sustainable market growth. Both business tax (BT) and value-added tax (VAT) are indirect taxes that have been implemented in China for decades. VAT income is shared between the central and local governments, with the majority going to the central government.
Meanwhile, the entire BT levied goes to the local governments. While this arrangement ensured a steady and sufficient stream of income for both the central and local governments, it also created high tax burdens for enterprises. Continue reading
Nov. 28 – China’s State Administration of Taxation released the “Announcement on Issues concerning Value-Added Tax and Consumption Tax of Exported Goods and Services (Announcement  No. 65, hereinafter referred to as ‘Announcement’)” on November 13, which clarifies issues related to the value-added tax (VAT) and consumption tax of exported goods and services. Detailed information can be found below. Continue reading
Nov. 22 – China’s State Administration of Taxation (SAT) issued the “Announcement on Issues Concerning the Registration and Declaration of the Cultural Undertaking Development Fee under the Value-Added Tax to Business Tax Pilot Conversion (SAT Announcement  No. 64, hereinafter referred to as the ‘Announcement’)” on November 11, which clarifies the registration and declaration issues of the cultural undertaking development fee (CUD Fee) under the nationwide tax reform. Detailed information can be found below. Continue reading
Nov. 21 – The new issue of Asia Briefing Magazine, titled The 2014 Asia Tax Comparator, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of November and December.
The opportunities to sell to the Asian consumer have never been more pronounced than they are today, and those opportunities will continue to expand and develop over the next three decades. Key to understanding and accessing this massive, dynamic new consumer market is the ability to understand the underlying tax treatments. To that end, we are pleased to present our third annual “Asia Tax Comparator” as Asia Briefing Magazine’s final issue of 2013. Continue reading
Nov. 12 – China’s Ministry of Finance and the State Administration of Taxation jointly released the revised “Interim Measures on the Calculation and Payment of Value-Added Tax (VAT) for Head Offices and their Branches under the Business Tax to VAT Pilot Conversion (caishui  No. 74, hereinafter referred to as “Measures”)” on October 24, which specify the VAT calculation and payment measures for head offices and their branches under the nationwide tax reform. Detailed information can be found below. Continue reading
Nov. 6 – The Shanghai Municipal Office of the State Administration of Taxation released the “Announcement on Issues Concerning the Filing of Value-added Tax Exemptions for Cross-border Taxable Services under the Business Tax (BT) to Value-Added Tax (VAT) Pilot Conversion and Tax Settlement during the Initial Pilot Period (Announcement  No.3, hereinafter referred to as ‘Announcement’)” on October 29, which clarifies the following issues for taxpayers within its jurisdiction.
- Requirements for filing of VAT exemption for cross-border taxable services; and
- Tax settlement issues during the initial pilot period.
Detailed information can be found below. Continue reading
Nov. 5 – The Development Research Center (DRC) of China’s State Council, which is known as the official think tank of China, recently released the “383 Scheme” for the Third Plenary Session of the 18th Central Committee of the Communist Party of China (hereinafter referred to the “Third Plenum”). The Third Plenary Session of each round of Communist Party’s Central Committee usually determines the economic theme in the next few years. The Third Plenum will be held on November 9th to November 12th in Beijing.
The so-called “383 Scheme” is a proposed roadmap for the next round of China’s reform after the Third Plenum and is widely expected to serve as a blueprint for the final document of the meeting. It refers to “a three-in-one reform principle in eight key reform areas, with three correlated reform combinations,” which puts an emphasis on an economic structure ruled by the law. Continue reading
Nov. 4 – The new issue of China Briefing Magazine, titled Social Insurance in China, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the month of November.
For foreigners contemplating setting up in China, one of the key aspects to understand is the costs of sustaining staff in the country. To do so, it is necessary to become familiar with China’s social insurance system. The system is complex because the vastness of the country means that local implementation of the rules and regulations varies greatly, giving rise to differing contribution rates as well as difficulties in transferring social insurance accounts across regions. Continue reading