China Deepens the VAT Reform

China’s Value Added Tax (VAT) reform was introduced in 2012 and implemented national wide in May 2016. From May 2016 to June 2017, 85.12 billion RMB has been cut from companies’ burden, according to the Ministry of Finance.

Premier Li Keqiang confirmed that China will continue to refine VAT reform, following an August 18th meeting of the State Council Executive Meeting.

The VAT reform programs announced this year continue to streamline and simplify China’s tax structure.

 There are four major changes as followed:

1.Tax tiers have been reduced from four to three tiers (now 6 percent, 11 percent, and 17 percent, with the 13 percent tier removed) and reduce tax rates for farm products, tap water, and publications from 13 percent to 11 percent.

This article was written by  and published on PTL Group. Original Post:      

View Original Article here