China Tax/Business News Flash

Aug 2012, Issue 21

Further roll-out of the Value Added Tax Transformation Pilot Program

Following the launch of the Business Tax to Value Added Tax Transformation Pilot Program ("Pilot Program") for the transportation industry and certain modern service industries in Shanghai effective from 1 January 2012, the State Council has now approved expanding the Pilot Program to 10 other provinces and municipalities: Beijing, Tianjin, Jiangsu, Zhejiang, Anhui, Fujian, Hubei, Guangdong, Xiamen and Shenzhen (hereinafter referred to as "10 New Pilot Regions") in batches from 1 August through to the end of 2012.  The expansion was officially announced during a State Council meeting called by Premier Wen Jiabao on 25 July 2012.  The announcement also mentioned that the Pilot Program will be further expanded into other regions and a nationwide pilot will be launched for selected industries in the Pilot Program next year.

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