Global

Details

  • Service: Tax, Global Indirect Tax, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 9/6/2013

China - VAT reforms proposed for insurance sector 

September 6: What will be the effect of value added tax (VAT) reforms for the insurance sector in China?

The insurance sector in China is undergoing significant change and development. As the Chinese economy grows, an increasingly affluent middle class is expected to purchase insurance products as a means of providing protection against economic loss arising from motor vehicle accidents, property theft or damage, loss of employment or income, sickness, and other mishaps.


Insurance products will also serve to insulate communities and governments more generally against losses from catastrophic events, such as earthquakes, floods and fire.


The Chinese government has a long history of using its VAT system as a tool of economic policy, and the extent to which the insurance sector’s future development is encouraged through favourable VAT policies is keenly anticipated.


Read an August 2013 report [PDF KB] prepared by the KPMG member firm in China: Proposed Introduction of VAT for the Insurance Sector in China




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