The Pilot Program of the indirect tax reform in Shanghai starts
On 16 November 2011, the Ministry of Finance ("MOF") and the State Administration of Taxation ("SAT") jointly released Caishui  No.110, <Pilot Program for the Transformation from Business Tax ("BT") to Value Added Tax ("VAT")> ("Circular 110") and Caishui  No.111, <Pilot Program for the Transformation of Transportation and Certain Modern Service Industries in Shanghai from BT to VAT"> ("Circular 111"). These Circulars will come into effect on 1 January 2012.
These two policy documents earmark the official kick off of the long-awaited transformation of BT to VAT for service industries in China. This move will likely bring dramatic changes to the landscape of Chinese indirect tax system. Numerous BT and VAT payers will be impacted either positively or negatively. As usual changes will definitely bring along challenges and opportunities.
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Last Updated on Monday, 20 May 2013 13:10