China plans to cut VAT tax rate as part of a CNY 400bn (USD 63bn) tax reduction package aiming at reducing businesses burdens. The VAT cuts will apply equally to all businesses registered in China.
VAT cuts are as follows:
- Manufacturing sector: one percent cut, new rate will be 16 percent
- Transportation, construction, basic telecommunications services and farm sectors: one percent cut, new rate will be 10 percent
The VAT cuts are part of an overall reform of the country’s tax regime that help reducing the tax burden for businesses and stimulate the economy. More tax reforms are planned for the future.
Read this article on china-briefing.com for a detailed overview about the reduced tax rates.
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