China alert - Issue 28, December 2012
Circular No. 68 and No. 96 are supporting measures under the background of VAT reform, and clarified the controversial issues of the calculation base of CBDL after VAT reform. Meanwhile, as the CBDL are collected associated with VAT, Circular No.68 also indicates that the CBDL should be collected by the state tax bureaus, instead of the local tax bureaus, considering the efficiency of tax administration and collection. The State Administration of Taxation (SAT) also issued Announcement 51 on the filing procedure of CBDL after the VAT Pilot Program.