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Posts Tagged ‘PRC’

Notice by the PRC State Council on the Implementation of the Grandfathering Preferential Policies under the PRC Enterprise Income Tax Law Decree No. [2007] 39

January 17th, 2009 1 comment

To the people’s governments at the provincial level, the people’s governments of autonomous regions and municipalities directly under the State Council, the ministries, and the institutions directly under the State Council

The PRC Enterprise Income Tax Law (referred to as the “EIT Law” hereafter) and the Implementation Regulations of the PRC Enterprise Income Tax Law (referred to as the Implementation Regulations hereafter) will take effect on January 1, 2008. In accordance with Article 57 of the EIT Law, the State Council gives notice on the issues of grandfathering preferential policies under the EIT Law as below:

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Officials of State Administration of Taxation Elaborated on Highlights in the Implementation Regulations of PRC Enterprise Income Tax Law

January 17th, 2009 No comments

It has been a 13-year journey from the preliminary work in 1994 to the passing of thePRC Enterprise Income Tax Law (referred to as “the EIT Law” hereafter) on 16th March 2007, which marked the completion of the unification of two tax systems for  domestically funded and foreign funded enterprises in China. It is a system innovation in the process of building socialism and a harmonized society within the country. To reap the benefits of the new tax system depends very much on its implementation in an effective manner. A few days ago, the State Council announced the long-awaited  Implementation Regulations of the PRC EIT Law (referred to as “the Implementation Regulations” hereafter), which is to come into play with the implementation of the  EIT Law.

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Under the current economic situation, what major significance does the VAT transformation reform have in sustaining the steady and relatively fast development of our country’s economy?

January 15th, 2009 No comments

The VAT transformation reform allows the input credit for the purchase of capital equipment to be offset against the output VAT. That will eliminate the double taxation resulting from the adoption of the production-type VAT system, reduce the
tax burden for investment in capital equipment, and a major tax cutting policy without introducing a change in the urrent tax rates. Since it can avoid double tax in the purchase of capital equipment, it will encourage investment, increase the demand in the domestic market, promote technological advancement, adjust the industry structure and the transformation pattern of the economic growth. Currently, the financial tsunami triggered by the sub-prime mortgage crisis has spread to Europe,Asia, and Latin America. Global economic growth rate has obviously been slowed down. Some countries have shown signs of economic recession. The financial crises have adverse impact on the real economy.

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Taxation in the PRC-TURNOVER TAX

January 11th, 2009 No comments

1. Value Added Tax (VAT)
2. General VAT Accounting Treatment
3. Special VAT Accounting Treatment
4. VAT Planning
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PRC TAX SYSTEM

January 11th, 2009 1 comment

Sources of PRC tax laws, regulations, rule and notices
The National People’s Congress (the NPC)

PRC tax laws are promulgated by the National People’s Congress. The State Council is given the power to promulgate implementation regulations under the PRC tax laws. One example is the PRC Tax Levy and Administration Law and its Detailed Implementation Regulations.
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