Jiangsu Province Releases Announcement on Transitional Tax Policies
Oct. 23 – Jiangsu’s Provincial Office of the State Administration of Taxation (SAT) released the “Announcement on Operation Details of the Transitional Preferential Policies in the Pilot Collection of Value-Added Tax (VAT) in Lieu of Business Tax in Transportation and Certain Areas of Modern Service Industries (Announcement [2012] No. 8, hereinafter referred to as the ‘Announcement’)” on October 15, which is retroactively effective from August 1, 2012. Key information taken from the Announcement can be found below.
Where the pilot taxpayers have already enjoyed the preferential business tax policies on or before September 30, 2012 in accordance with the original state policies, they are entitled to the corresponding preferential VAT policies for the rest of their preferential tax policy period without filing such application.
The competent tax authorities will go through the determination and record-filing procedures directly for such taxpayers on their qualification to enjoy the preferential VAT policies. This will be done in accordance with the information of the original business tax exemption and reduction items confirmed in the “Investigation and Verification Form of the Taxpayers in the Pilot Collection of Value-added Tax in Lieu of Business Tax,” or the relevant documents and other written certificates issued by local taxation authorities on enjoying preferential business tax policies.
Where record-filing and examination are required for taxpayers (excluding those in the above-mentioned case) who are qualified for VAT exemption or immediate tax refund policy, such taxpayers shall provide the application materials based on the relevant regulations and go through the relevant procedures according to the “Administrative Measures of the Jiangsu Provincial Office of SAT on Turnover Tax Preference (Trial) (sushuifa [2007] No.127).”
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