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China VAT tax base

  • VAT
  • 29 April 2016 | Richard Asquith

China VAT tax base

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.


VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He is part of the European leadership team which this year won International Tax Review's Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.