China harmonises levies with VAT
- Aug 18, 2020 | Richard Asquith
The Chinese Ministry of Finance has announced plans to harmonise the 6% City Maintenance & Construction and the 3% Construction Services levies with Chinese VAT
A bill has now been passed by the National People’s Congress to start the process. Initially, the tax base for both levies will be harmonised with VAT. A consolidated urban rate will be set at 7%; and a 5% for those outside of major conurbations. A 1% charge is being set for countryside dwellers.
The new rates come into effect on 1 September 2021.