Michaela Merz

China – B2V tax system reform, changes expected as of 1st of May

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730187_original_R_by_M. Hermsdorf_pixelio.deChinese Premier Li Keqiang mentioned on Saturday during the National People Congress meeting that B2V will be fully rolled out on May 1, expanding the B2V scope to construction, real estate, financial services and consumer services.

The rules have not been issued yet; also, there is no mention as to when the rule will be issued. That could be next week or even later. This means that taxpayers in these industries will only have one and a half month to get ready. Details are not known yet however, it is expected that on interest income 6% VAT will be applicable, while VAT on interest expense will temporarily not be creditable. More to follow soon. As soon as details are known, a webinar will be run.

For further details, please feel free to contact alan.wu@cn.pwc.com.
Image source: M. Hermsdorf  / pixelio.de

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