At the start of this year, companies in some service sectors began paying value-added taxes (VAT) in Shanghai instead of a business tax levied on total revenue. China was expected to expand the Shanghai reform to other 8 locations. Beijing may take the lead in the expansion of VAT pilot program on Sep. 1, 2012.
On Sep 3, 2012, Liu tianyong, as a managing partner and senior partner of hwuason law firm, and Shi Zhengwen, as a professor at China University of Political Science and Law, accepted the interview.During the interview, Liu Tianyong expressed his opinion on the coming Beijing VAT reform.
-The rules implemented in Shanghai are likely to be applied in Beijing, but there might be small adjustments. And some sectors may suffer from an increased tax burden.
-The pilot program rules are more likely to continue to provide concession or exemption under VAT. So, companies may apply for financial aids to help reduce the tax burden.
-In terms of taxpayers’ rights, Liu tianyong put forward that the future tax reform should increase protection of taxpayers’rights.
Click here to see the attached video: http://tv.hexun.com/2012-09-05/145497087.html