China Tax Alert - Issue 34, December 2013
On 12 December 2013, China’s Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly issued Circular Caishui  No. 106 (“Circular 106”) to implement the expansion of the VAT pilot program to the railway transportation industry and postal services industry from 1 January 2014. The telecommunications sector, which had previously been expected to be brought within the VAT pilot program concurrently, is now expected to transition to VAT from 1 April 2014. In addition, Circular 106 further expands the scope of the VAT pilot program in some existing industries which are already subject to VAT. Importantly, Circular 106 also makes significant changes to the VAT treatment of a number of areas which are already subject to the VAT pilot program and have been problematic for businesses in those industries – specifically, international goods transportation agency services and the finance leasing industry. Finally, Circular 106 extends certain preferential policies such as offshore outsourcing services VAT exemption policies.
© 2020 KPMG Huazhen LLP, a People's Republic of China partnership, KPMG Advisory (China) Limited, a limited liability company in China, KPMG, a Macau partnership and KPMG, a Hong Kong partnership, are member firms of the KPMG global organisation of independent member firms affiliated with KPMG International Limited ("KPMG International"), a private English company limited by guarantee. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
For more detail about the structure of the KPMG global organisation please visit https://home.kpmg/governance.