Circular on Printing and Distributing the Pilot Proposals for the Collection of Value-Added Tax in Lieu of Business Tax

Circular on Printing and Distributing the Pilot Proposals for the Collection of Value-Added Tax in Lieu of Business Tax

Cai Shui [2011] No.110

November 16, 2011

The finance departments (bureaus), offices of the state administration of taxation, local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan and the finance bureau of Xinjiang Production and Construction Corps:

The Pilot Proposals for the Collection of Value-Added Tax in Lieu of Business Tax has been approved by the State Council and is hereby issued to you for your compliance and implementation.

Pilot Proposals for the Collection of Value-Added Tax in Lieu of Business Tax

According to the spirit of the Fifth Plenary Session of the 17th Central Committee of the CPC, this Proposal is formulated in accordance with the tax reform objectives determined in the Outline for the Twelfth Five-Year Plan for National Economic and Social Development of the PRC, and the requirements of the 2011 Report on the Work of the Government.

I.Guiding Ideology and Basic Principles
1. Guiding ideology
We should establish a sound tax system conducive to scientific development, promote the adjustment of economic structure and support the development of the modern service industry.
2. Basic principles
(1) Make an overall plan and implement the plan by steps. We should correctly deal with the relationship among reform, development and stability, make an overall plan for and take into full consideration the demand of economic and social development and, in light of the need to fully push forward the form and the current realities, make a plan in scientific manner and implement it steadily.
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