On 16 November 2011, the Ministry of Finance, the State Administration of Taxation issued "On the Issuance of (Business Tax Levy VAT Pilot Program) Notice" ( Cai Shui [2011] No. 110 ), there is "Business Tax change to VAT", the main contents of these regulations are mainly in the following aspects:-
1, The Rate
A file in an existing basic rate of 17%, a preferential tax rate of 13% of the file on the basis of an increase of 11 %, 6% rate of two tranches; leasing services for the provision of tangible personal property, the tax rate is 17%; provide transportation services including land transport services, marine transportation services, air transport services, pipeline transportation services, the tax rate is 11%; some modern services, including research and development and technical services, information technology services, cultural and creative services, logistics support services, forensic consulting services at the rate of 6% ; annual taxable sales of 5 million the following services ( transportation and some modern services ) for easy collection methods, the collection rate was 3%.
2, The Tax Method
Transportation, construction, telecommunications transport industry, modern service industry, culture and sports, real estate sales and transfer of intangible assets, in principle, applicable to general VAT tax method. Finance and insurance and life of service, in principle, simple method of taxation for VAT.
3, The Tax Basis
Taxpayers tax basis in principle for the occurrence of total income derived from taxable transactions. For some there is a lot to pay or collect advance funds transfer industry the amount paid on behalf of its collection can be reasonably incurred.
4, Trade in Services
Service trade import value-added tax levied on domestic and export system for zero-rated or exempt.
5, The transitional preferential tax policies
Pilot countries for the industry's original business tax incentives can be extended but through reform can solve the problem of double taxation, be canceled. Specific situations during the pilot take appropriate transition policy.
6, The tax revenue attribution
During the pilot to maintain the basic stability of the existing financial system, the original pilot areas attribution sales tax revenue, revenue change levy VAT pilot areas are still home, taxes were put in storage. Because government revenues generated by the pilot, according to the existing financial system by the central and local burden, respectively.
7, The regional tax coordination
Pilot seat as VAT taxpayer organizations place for the payment, the business tax in different places, allowing the calculation of VAT is deductible. Non-pilot taxpayers engaged in business activities in the pilot areas and continue to follow the relevant provisions of the existing sales tax report and pay sales tax.
8, The value-added tax policy convergence
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