- Public Consultation on Draft Regulations: On August 12, China released a draft of the implementation regulations for its new VAT law, inviting public feedback until September 10. The revised VAT law, which is set to take effect on January 1, 2026, is crucial for the country’s fiscal framework.
- Key Features of the Regulations: The draft comprises 57 articles organized into six sections, addressing general provisions, tax rates, taxable amounts, tax incentives, tax administration, and supplementary provisions. It clarifies definitions of taxpayers, taxable transactions, and outlines what constitutes exported goods and cross-border services.
- Impact on Tax Administration and Business Confidence: The regulations aim to improve deduction standards, streamline processes, and enhance administrative efficiency, thereby promoting a unified national market. Experts emphasize that a stable tax system will boost investor confidence and support sustainable business growth in China.
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