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.
In this issue of our News Flash, we would like to highlight the potential impacts arising from the expansion of the Pilot Program to the 10 New Pilot Regions and share our observations.
Other issues of China Tax/Business News Flash Visit our
Tax Library.
