China VAT tax base
- 29 April 2016 | Richard Asquith
The Chinese Ministry of Finance has issued guidance on the calculation of the tax base for house tax, deed tax, land appreciation tax and income tax on rental income following reforms to VAT from May 2016.
11% VAT is replacing the 5% Business Tax on real estate transactions from 1 May 2016. It is part of a wholesale VAT reform started in 2012.
Prior to 1 May 2016, Business Tax paid is deductible from the taxable amount on calculations of the above taxes. From 1 May, VAT paid on real estate transactions will not be included in the taxable base for the above transactions.