Michaela Merz


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CHINA: Reduction of VAT rates per 1 April 2019


It was confirmed that the standard manufacturing rate of 16% will be reduced to 13%. The transport and construction rate will be reduced from 10% to 9%. The lower rates 6% and 3% will remain unchanged. There might be further changes following shortly in order to simplify the VAT system. Continue reading


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China – reduction of the VAT rate as from 1 of May 2018


The following was announced by Premier Li, during State Council meeting yesterday, Mar 28.:

Reduction in VAT rate – Manufacturing, etc. VAT rate reduce from 17% to 16%.  Transportation, construction, basis telecom, etc, VAT rate reduce from 11% to 10%. Continue reading


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B2V Reform (I) China – Opportunities and Challenges to the Real Estate and Construction Sectors


612434_web_R_B_by_Rolf Handke_pixelio.deOpportunities and Challenges to the Real Estate and Construction Sectors

In brief

On 24 March 2016, the Ministry of Finance (MoF) and the State Administration of Taxation (SAT) jointly released Caishui [2016] No. 36 on the Comprehensive Roll-out of the B2V Transformation Pilot Program (“Circular 36”), under which the real estate and the construction industry will be transformed from business tax (BT) to value-added tax (VAT) (“B2V Reform”) starting on May 1st 2016 (“expansion date”). Continue reading


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


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. Continue reading


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Taxation of the Digital Economy


I am pleased to share with you following interesting digital economy documentaions:

140606_China VAT and e-commerce

140825_Taxation of the digital economy

Please do not hesitate to contact me if you need further information.


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VAT reform in China influencing EBITDA of the Chinese telecoms operators as from 1 of June 2014


For basic telecom services such as fixed network telephone services, mobile services and voice-over internet protocol services (VOIP) and value added services such as providers of online data processing (online banking, auctions, payment processing), data storage services, internet information services, data hosting, internet access services and call centres the VAT rate of 11% and 6% respectively replaced the 3% business tax as from 1 of June 2014. The telecommunication sector is heavily regulated in China. Continue reading


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Free Trade Agreement between China and Switzerland as from 1 of July 2014


The bilateral Free Trade Agreement concluded in 2013 between China and Switzerland comes into force on 1 July 2014. Switzerland will abolish all customs duties on imports of Chinese industrial goods. China is abolishing or reducing the large majority of its customs duties on imported Swiss industrial goods, in whole or in part, Continue reading