China, People's Republic of

Corporate - Significant developments

Last reviewed - 30 December 2019

China continues its value-added tax (VAT) reform journey in 2019. The Ministry of Finance (MoF) and State Taxation Administration (STA) further issued circulars to deepen the VAT reform in China. Effective from 1 April 2019, VAT rates are lowered from 16%, 10%, and 6% to 13%, 9%, and 6%, respectively. Moreover, one-off input VAT credit for purchasing real property, input VAT credit for purchasing domestic passenger transportation services, extra input VAT credit for certain industries, and excess input VAT refund are allowed.