In 2017 and 2018, the Ministry of Finance (MoF) and State Administration of Taxation (SAT) issued several circulars to deepen the value-added tax (VAT) reform in China. The VAT rate of 13% was abolished from 1 July 2017. The VAT rates of 17%, 11%, and 6% were reduced to 16%, 10%, and 6%, respectively, from 1 May 2018.
In May 2017, China’s relevant authorities jointly issued the Administrative Measure on Due Diligence Procedures for Non-residents’ Financial Account Information in Tax Matters (the Measures) to implement the Common Reporting Standard (CRS) in China. Financial institutions established in China are required to carry out due diligence procedures on financial accounts starting from 1 July 2017. China is committed to exchange the first round of financial account information by September 2018.