Company News

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.

The People’s Government of Guangzhou released the “Notice on the Plan for the Pilot Collection of Value-added Tax (VAT) in Lieu of Business Tax in the Transportation Industry and Certain Modern Service Industries (suifuban [2012] No.47, hereinafter referred to as ‘Notice’)” on October 12, aiming to promote the smooth implementation of the pilot collection.

Pursuant to the “Administrative Measures for Recognition of Value-added Tax General Taxpayers (Order No. 22 of the SAT),” issues regarding the recognition of VAT general taxpayers in non-pilot regions are hereby announced as follows.

China’s State Administration of Taxation released the “Announcement on Issues Relating to the Business Tax for Assets Reorganization by Taxpayers (Announcement [2011] No. 51)” and “Announcement on Issues Relating to the Value-Added Tax for Assets Reorganization by Taxpayers (Announcement [2011] No. 13)” in 2001, addressing issues concerning tax payments for asset reorganization by taxpayers.

To establish a mechanism for reporting the dynamic information and data relating to the pilot collection of value-added tax (VAT) in lieu of business tax, China’s Ministry of Finance (MOF) released the “Circular on Properly Handling the Reporting of Information and Data on the Pilot Collection of Value-added Tax in Lieu of Business Tax (caishuiban[2012] No. 29, hereinafter referred to as the ‘Circular’)” on September 27, 2012.

To strengthen the administration on collection of corporate income tax generated from trans-regional operations, China’s State Administration of Taxation (SAT) released the “Circular on Inspection of Distribution of Consolidated Payments of Corporate Income Tax on Trans-Regional Operations (guoshuihan [2012] No. 445, hereinafter referred to as the ‘Circular’)”on September 24.

China’s Ministry of Finance (MOF), the People’s Bank of China (PBC) and the State Administration of Taxation (SAT) jointly released the “Circular on Budget Management Issues Concerning the Pilot Collection of Value-Added Tax (VAT) in Lieu of Business Tax (caiyu [2012] No.367, hereinafter referred to as ‘Circular’)” on August 17.

China’s State Administration of Taxation (SAT) issued another set of frequently asked questions relating to tax payments on October 8. The answers provided are based on existing regulations. Detailed information can be found below.

Jiangsu’s Provincial Office of the State Administration of Taxation (SAT) released the “Announcement on Matters Concerning Value-Added Tax (VAT) Declaration in the Business Tax to Value-Added Tax Pilot Conversion in Jiangsu Province (Announcement [2012] No.6, hereinafter referred to as ‘Announcement’)” on September 21, clarifying issues relating to the filing of VAT returns by VAT taxpayers in the province.

China’s State Administration of Taxation (‘SAT’) released the “Administrative Measures on Income Tax for the Policy-Based Relocation of Enterprises (Announcement [2012] No.40, hereinafter referred to as ‘Measures’)” on August 10, aiming to regulate the administration of levying income tax on enterprises undergoing policy-based relocation.