Latest Laws and Regulations of August 2012, I

I. Eight Provinces Including Beijing will gradually Develop the Pilots to be Levied VAT Instead of Business Tax from 1st of August, 2012.

The Ministry of Finance and State Administration of Taxation jointly issued the Notice on Developing the Pilots to be Levied VAT Instead of Business Tax in Transportation Industry and Partly Modern Services Industry in 8 Provinces or Cities including Beijing (hereinafter referred to as the “Notice”) on 31st of July, 2012. According to the Notice, upon the approval of the State Council, the range of pilots is extended to Shanghai, Beijing, Tianjin, Jiangsu, Anhui, Zhejiang, Fujian, Hubei and Guangdong. The transition of such tax policy shall be completed before 1st of September, 2012 in Beijing, 1st of November, 2012 in Fujian and Guangdong and 1st of December, 2012 in Tianjin, Zhejiang and Hubei. The pilot plan is basically the same as that of Shanghai. On 10th of August, 2012, the State Administration of Taxation published the Announcement on Relevant Issues concerning Qualification Verification of a General VAT Taxpayer in 8 Provinces and Cities Including Beijing Developing Pilots to be Levied VAT Instead of Business Tax.