{"id":4976,"date":"2008-11-11T16:18:08","date_gmt":"2008-11-11T08:18:08","guid":{"rendered":"http:\/\/danwei.webfactional.com\/?p=4976"},"modified":"2008-11-11T16:18:08","modified_gmt":"2008-11-11T08:18:08","slug":"tax_rebate","status":"publish","type":"post","link":"https:\/\/laodanwei.org\/wp\/front-page-of-the-day\/tax_rebate.php","title":{"rendered":"The VAT, and taxes on virtual assets"},"content":{"rendered":"
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The Beijing News<\/em>
November 11, 2008<\/div>\n<\/div>\n

The Beijing News<\/i> reports on the State Council’s announcement of a schedule for value-added tax reform. The VAT reform, which is part of a 4 trillion yuan economy stimulus package, was announced yesterday and will go into effect starting January 1, 2009.<\/p>\n

According to the article, small-scale taxpayers will benefit most from the tax reform. “Small-scale taxpayer” refers to a business with annual taxable sale value of less than one million yuan (or 1.8 million yuan, depending on the industry).<\/p>\n

The new VAT plan will set the value-added tax rate for small-scale taxpayers to 3%, compared to the previous rate of 4% or 6%. Though the new scheme will increase the tax rate on mine products from 13% to 17%, in general it is estimated that the new VAT scheme will result in a 123 billion yuan tax cut next year, with small businesses reaping most of the benefits. China’s total value-added tax income for the 2007 fiscal year was 1.2 trillion yuan<\/p>\n

Also on the front page: <\/strong><\/p>\n

Beijing’s Local Taxation Bureau will accepting reports on virtual asset trading starting today. Earlier, the bureau decided to impose a 20% tax on income generated by online trading of virtual assets.<\/p>\n

The practicalities of collecting those taxes is widely questioned, because most of these trades are not recorded in document form and are difficult to trace.<\/p>\n

Links and Sources<\/div>\n
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