Tax Planning for Levying Value-added Tax in Lieu of Business Tax
To eliminate double taxation, the PRC government has commenced to levy value-added tax in lieu of business tax (“VIB”) with Shanghai as a pilot city since January 2012. The reform of VIB has been extended to the transportation industry and certain modern service industries across the country since 1 August 2013.
Conpak's tax professionals in China has introduced tax planning services for the VIB so as to assist the companies to have a smooth transition during the progress of the reform and enjoy the benefits brought from the implementation of VIB, including zero tax rates for export services, duty-free concession and cost reduction.
The VIB is applicable to the following industries:
- Transportation industry
- Research and development and technical services: research and development, technology transfer, technical consulting, contracted energy management, engineering survey and exploration services etc.
- Information technology services: software, circuit design and testing, information systems, business process management services
- Cultural and creative services: design, transfer of trademark and copyright, intellectual property, advertising, convention and exhibition services
- Logistics support services: Aviation, port, cargo and passenger terminal, salvage, freight forwarding, customs brokerage, and warehousing and handling services etc.
- Leasing of tangible movable property: financial leases for tangible movable property and operating leases for tangible movable property
- Certification and consulting services: certification, assurance and consulting services
- Production, broadcasting and distribution services for movies and television programs
Our Services Include:
- Application for the Eligibility as a General Tax Payer
- Application for the Increase in Limit of the Value-Added Tax Special Invoice
- Application for Value-Added Tax Concession
- Application for Certification of Tax Exemption
- Application for Tax Refund for Exported Products
- Agency Services for Refund of Overpaid Tax
- Accounting and Tax Treatment during the Transitional Period: Variable Levy, Tax Credit at the Period End and Financial Support Fund etc.
- Merger and Split of Companies