China plans to reduce value added tax to support the economy

21-03-2019 Media in\ Beijing
China plans to implement a series of measures to reduce VAT rates, while ensuring that the tax burden on all industries will continue to decline only, according to the decision of the executive meeting of the State Council, presided over by Chinese Premier Li Keqiang.
This year’s government action report outlined a broader tax cuts plan, including a reduction in VAT in manufacturing and other industries from 16 to 13 per cent, and the VAT rate in transport, construction and other industries from 10 to 9 per cent.
A series of concrete actions were identified at yesterday’s meeting to achieve such objectives, which will be enacted from 1 April this year.
VAT will be extended to qualify for the deduction, and will cover passenger transport services. Taxpayers will be able to obtain an income tax deduction on real estate payments on a one-time basis instead of twice within two years.
The council also decided that taxpayers whose main business in postal services, telecommunications, modern services and consumer services would enjoy an additional 10 percent discount on value added tax before the end of 2021. The increase in value added tax Tax cuts through legal proceedings.