Announcement of the State Administration of Taxation on Matters relating to Tax Levying and Administration concerning the Comprehensive Promotion of the Pilot Collection of Value-added Tax in lieu of Business Tax
Announcement of the State Administration of Taxation on Matters relating to Tax Levying and Administration concerning the Comprehensive Promotion of the Pilot Collection of Value-added Tax in lieu of Business Tax
Announcement of the State Administration of Taxation on Matters relating to Tax Levying and Administration concerning the Comprehensive Promotion of the Pilot Collection of Value-added Tax in lieu of Business Tax
Announcement of the State Administration of Taxation [2016] No.23
April 19, 2016
In order to guarantee the smooth implementation of the comprehensive promotion of the pilot collection of value-added tax (hereinafter referred to as "VAT") in lieu of business tax ("BT"), matters relating to tax levying and administration are hereby announced as follows:
I. Tax Declaration Period
1. For taxpayers newly included in the pilot program of collection of VAT in lieu of BT (hereinafter referred to as the "Pilot Program") on May 1, 2016 (hereinafter referred to as the "pilot taxpayers"), the VAT declaration period in June 2016 is extended to June 27, 2016.
2. Local offices of the State Administration of Taxation (hereinafter referred to as the "SAT") in provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan (hereinafter referred to as the "Provincial Offices, SAT") may appropriately extend, according to their actual work conditions, the period for the final settlement of enterprise income tax for 2015, to no later than June 30, 2016.
3. Original taxpayers of BT subject to quarterly declaration shall declare BT for April 2016 to the competent local taxation authorities during the declaration period in May 2016; and declare VAT for May and June 2016 to the competent national tax authorities during the declaration period in July 2016.
II. Registration of Qualifications of General VAT Taxpayers
1. Pilot taxpayers shall be subject to the registration of qualifications of general VAT taxpayers according to the provisions hereof.
2. Unless under the circumstances prescribed in Item 3 of Article 2 hereof, pilot taxpayers with annual taxable sales amount over CNY5 million from selling services, intangible assets or real estate (hereinafter referred to as "taxable actions") prior to implementation of the Pilot Program (hereinafter referred to as "prior to the pilot implementation") shall register for general VAT taxpayer qualification with the competent national tax authorities.
The annual taxable sales amount from taxable actions by a pilot taxpayer prior to the pilot implementation shall be calculated using the following formula:
Annual taxable sales amount from taxable actions = Total turnover from taxable actions within a consecutive period of not more than 12 months / (1 + 3%)
For pilot taxpayers for which BT is collected after deduction according to the existing provisions on BT, their turnover from taxable actions shall be calculated at the amount before such deduction.
Contingent turnover from transfer of real estate by a pilot taxpayer prior to the pilot implementation will not be included in the annual taxable sales amount from taxable actions.
3. A pilot taxpayer who has acquired the qualification of general VAT taxpayer prior to the pilot implementation with taxable actions is not required to re-submit the registration of qualification of general VAT taxpayer, and the competent national tax authority will prepare and serve the Notice on Taxation Matters and inform such taxpayer.
4. A pilot taxpayer whose annual taxable sales amount from taxable actions does not exceed CNY5 million prior to the pilot implementation, and who has sound accounting and is able to provide accurate tax information, may also submit the registration of qualification of general VAT taxpayer with the competent national tax authority.
5.
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Announcement of the State Administration of Taxation [2016] No.23
April 19, 2016
In order to guarantee the smooth implementation of the comprehensive promotion of the pilot collection of value-added tax (hereinafter referred to as "VAT") in lieu of business tax ("BT"), matters relating to tax levying and administration are hereby announced as follows:
I. Tax Declaration Period
1. For taxpayers newly included in the pilot program of collection of VAT in lieu of BT (hereinafter referred to as the "Pilot Program") on May 1, 2016 (hereinafter referred to as the "pilot taxpayers"), the VAT declaration period in June 2016 is extended to June 27, 2016.
2. Local offices of the State Administration of Taxation (hereinafter referred to as the "SAT") in provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in the state plan (hereinafter referred to as the "Provincial Offices, SAT") may appropriately extend, according to their actual work conditions, the period for the final settlement of enterprise income tax for 2015, to no later than June 30, 2016.
3. Original taxpayers of BT subject to quarterly declaration shall declare BT for April 2016 to the competent local taxation authorities during the declaration period in May 2016; and declare VAT for May and June 2016 to the competent national tax authorities during the declaration period in July 2016.
II. Registration of Qualifications of General VAT Taxpayers
1. Pilot taxpayers shall be subject to the registration of qualifications of general VAT taxpayers according to the provisions hereof.
2. Unless under the circumstances prescribed in Item 3 of Article 2 hereof, pilot taxpayers with annual taxable sales amount over CNY5 million from selling services, intangible assets or real estate (hereinafter referred to as "taxable actions") prior to implementation of the Pilot Program (hereinafter referred to as "prior to the pilot implementation") shall register for general VAT taxpayer qualification with the competent national tax authorities.
The annual taxable sales amount from taxable actions by a pilot taxpayer prior to the pilot implementation shall be calculated using the following formula:
Annual taxable sales amount from taxable actions = Total turnover from taxable actions within a consecutive period of not more than 12 months / (1 + 3%)
For pilot taxpayers for which BT is collected after deduction according to the existing provisions on BT, their turnover from taxable actions shall be calculated at the amount before such deduction.
Contingent turnover from transfer of real estate by a pilot taxpayer prior to the pilot implementation will not be included in the annual taxable sales amount from taxable actions.
3. A pilot taxpayer who has acquired the qualification of general VAT taxpayer prior to the pilot implementation with taxable actions is not required to re-submit the registration of qualification of general VAT taxpayer, and the competent national tax authority will prepare and serve the Notice on Taxation Matters and inform such taxpayer.
4. A pilot taxpayer whose annual taxable sales amount from taxable actions does not exceed CNY5 million prior to the pilot implementation, and who has sound accounting and is able to provide accurate tax information, may also submit the registration of qualification of general VAT taxpayer with the competent national tax authority.
5.
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