Joined: 29 Feb 2012
|Posted: Thu Mar 29, 2012 5:00 am Post subject: state and local
|The central government has given its approval for Beijingarkansas single|individual parent scholarships application to levy value-added tax (VAT) on certain sectors to replace the existing business tax under a pilot reform program, a source told the Global Times Sunday.
The Beijing Municipal Office of the State Administration of Taxation (SAT) and Beijing Local Taxation Bureau are still discussing how to distri|howevere VAT revenues between them, an insider from the Beijing SAT who wished to remain anonymous told the Global Times Sunday. "The program will start here July 1," the source said.
The Beijing authorities have not yet decided in which specific industries they will carry out the tax reform, |however high heels white[/b] ,|yet ,|nevertheless ,|nonetheless ,|still ,|although ,|though ,|unfortunately ,|and yet female black shoes[/b] , they may be similar to the ones selected in a trial by Shanghai, Hu Genrong, China indirect tax leader at US auditing company PricewaterhouseCoopers Consultantsdon't|do not Beijing office, told the Global Times last week.
VAT can in theory help lower the overall tax burden for many|countless|numerous companies, because it can avoid duplicate taxation.
Shanghai was the first city to start the tax reform at the beginning of this year, replacing business tax with VAT in the transportation and service industries.
The source said it would be more difficult for Beijing to push forward the reform than for Shanghai, because taxes in the capital are colled by two different tax bureaus, state and local, rather than one in Shanghai.
In China, around 75 percent of VAT income goes to the central government, while local governments collect nearly all the business tax.
The source said that at least during the initial period of the pilot program in Beijing, all the VAT will go to the local tax bureau, the same as with Shanghai.
Tianjin, Chongqing, Jiangsu Province and Shenzhen in Guangdong Province have |additionally , submitted applications to begin VAT reform and are awaiting approval from the central government, said Hu Genrong. The reform will be expanded to other parts of the nation when the conditions are suitable, the State Council said last October.
Hu suggested that enterprises should make full preparations for the tax reform including changing their tax management software. "Some of the Shanghai companies conducted their inner structural changes in a real hurry," Hu noted.
The Global Times called 10 transportation enterprises in Beijing, and they all said they had not heard about the reform. "The government |frequently , launches new[/b] policies quite suddenly," one of the managers complained.