On 5th March 2019, the Premier of China released a government work report at the 13th National People’s Congress and announced further tax reductions. In terms of VAT, tax rates shall be reduced. The reduction scope is as follows:
|Applicable VAT rate
|Sales and importation of general goods; provision of processing, repair and replacement services; and provision of leasing services of tangible and moveable assets
|Sales and importation of specified goods; provision of transportation, postal, basic telecom services, construction services and leasing services of immoveable property; and sales of land use rights or immovable property
|Provision of value-added telecom services, financial services, modern services and lifestyle services; and sales of intangible assets other than land use rights
We will keep you updated once further information has been released.The enforcement time of the VAT reduction is not yet determined. We expect that the State Administration of Taxation will issue a regulation after the National Congress and release more details in this aspect.