New value-added consumption purposes Business Tax Applied in

Provisional Regulations of the PRC VAT ", " The People's Republic of China Interim Regulations on Consumption Tax ," " The People's Republic of China on Business Tax " was November 5, 2008 the 34th executive meeting of the State Council amended and adopted , since 2009, January 1 date of implementation.

According to reports, the main VAT regulations were revised in five aspects : First, to allow deduction of fixed assets input tax. Second, due to blockage transformation may bring some tax loopholes , the revised VAT regulations, and enterprise technology updates independent and easy to mix their own use of personal consumption goods contained in the amount of input tax shall not be deductible . Third is to reduce small-scale taxpayer levy rate . Prior to the amendment of the VAT regulations, small- scale taxpayers collection rate of 6% . Small-scale industrial and commercial taxpayers are divided into two categories , the collection rate was 6% and 4%. Revised VAT regulations for small-scale industrial and commercial taxpayers no longer set two tranches of the rate of levy , levy rate will unify to 3%. Fourth, some of the current VAT policy embodied in the revised ordinance . Mainly on agricultural products complement ( Stock Forum ) and transportation expense deduction rate of VAT general taxpayer qualification and other regulations, canceled no longer running on processing, incoming assembly and compensation trade imported equipment required the exemption . Five is to facilitate the taxpayers' tax returns , tax filing deadline will be extended from 10 days to 15 days. Clear how to determine the withholding agent for foreign taxpayers , withholding obligations , location and withholding period withholding requirements.

Consumption Tax Regulations made major amendments to the following two aspects : First, the policies introduced since 1994 to adjust the content , updated to the new revised excise tax regulations , such as: some consumer goods ( gold and silver jewelry , platinum jewelry , diamonds and diamond jewelry ) of adjustment of consumption tax levied at the retail of cigarettes and liquor tax increases combined approach , the consumption tax rate of tariff adjustment . Second, convergence with VAT regulations , tax filing deadline will be extended from 10 days to 15 days , the place of taxation on consumption tax and other regulations have been adjusted.

Business Tax Regulations made four major aspects Revision: First, adjust the place of taxation way of expression ; two is to remove the difference between the lending business tax provisions ; Third, taking into account the specific business tax levied scope of each heading is difficult to enumerate a comprehensive, deleted business Tax Regulations annexed to the scope of tariff rates levied a column in the table , specific scope by the Ministry of Finance and State Administration of Taxation ; four convergence with VAT regulations , tax filing deadline will be extended from 10 days to 15 days. Further clarified how to determine the withholding agent for foreign taxpayers , withholding obligations , location and withholding period withholding requirements.