New Chinese Laws and Regulations of January, 2012 (1)

Today, Bridge IP Law Commentary will introduce you the latest regulations and policies in China.

I. The Pilot Enterprises Levied Value-added Tax (VAT) in Lieu of Business Tax

Whose Tax Bearing are Increased can Apply for Financial Support in Shanghai

Recently, according to the Meeting on Pilot Reform of Levying VAT in Lieu of Business Tax, the Shanghai government has made the detailed implementation measures for transitional financial support policy mainly includes “enterprises shall apply in accordance with facts, various financial supports for various enterprises, and timely funds pre-allocation”. The finance and taxation departments shall arrange the pilot enterprises fill the Declaration (Review) for Changes of Tax Bearing by Enterprises Levied VAT in Lieu of Business Tax when they conduct pilot enterprises to declare for the tax and collect the tax. The pilot enterprises can, comparing the current tax bearing with that before reform, apply to the finance and taxation departments for financial support if the actual tax bearing is ultimately increased.

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New Chinese Laws & Regulations of November, 2011 (1)

Today, Bridge IP Law Commentary will post you the latest China laws and regulations promulgated in November, and the following is the first part of the month:

1. The State Council of People’s Republic of China decides to start pilot VAT reform in Shanghai and a series of policies will be promulgated

On 16th November, 2011, the Ministry of Finance and the State Administration of Taxation issued the Experimental Plan of Transfer of Levy on Business Tax to VAT, and the Notice of Experiment of Transfer of Levy on Business Tax to VAT in the Transportation Industry and Part Modern Service Industries in Shanghai, which provide that the pilot of VAT replaces the existing business tax will be carried out in the transportation industry and part modern service industries in Shanghai from 1st January, 2012. Before that, with regarding to VAT, the Ministry of Finance and the State Administration of Taxation has issued the Notice on Return the Period-end Un-credited VAT Levied on the Purchase of Integrated Circuit Enterprises, and on the same day, the State Administration of Taxation issued the Announcement on the Adjustment of the Administration Measures of the Preferential Policy “Levy first and Return Immediately” for VAT.

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