News
China’s State Council has expanded the scope of its pilot project for the proposed tax reform which aims to replace the existing business tax with value-added tax (VAT) for the transport industry and some modern service industries.
The tax reform has been in effect in Shanghai since January 1, 2012. Effective August 1, 2012, the pilot program has been in practice in the four cities with status of municipality under direct jurisdiction of the government, namely Beijing, Tianjin, Xiamen and Shenzhen as well as the provinces of Jiangsu, Zhejiang, Anhui, Fujian, Hubei and Guangdong.
The tax reform focuses on promoting the development of China's central region.
