China

Details

  • Service: Tax, Indirect Tax
  • Type: Business and industry issue, KPMG information
  • Date: 9/11/2012

VAT reforms in China - What it means for multinational companies 

During 2012 and 2013, the Chinese Government is embarking upon one of the most ambitious tax reform programs in recent history. The program commenced in January 2012 with the introduction of a pilot program in Shanghai, replacing Business Tax (BT) with a Value Added Tax (VAT) for the transportation, asset leasing and modern services sectors. This is the first step in an overall plan to replace BT with VAT across the whole services sector in mainland China.

This change, which is intended to promote the development of the services sector in China as part of the Government’s 12th Five-Year Plan, has significant ramifications for multinational companies doing business in, or with, China.

 

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