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China's camp increases to provide "China Sample" for world tax reform.
On April 30, China will usher in the first anniversary of launching the pilot project of business tax to VAT. Over the past year, China's business-to-business reforms have benefited both at home and abroad, and the results of the reforms have been well received. Practical experience has provided a "Chinese sample" for the world to further promote VAT reform.
Wang Jun, director of the State Administration of Taxation, said at the 4th Global Forum on Value-Added Tax of the Organisation for Economic Cooperation and Development (OECD) recently that China will launch a pilot business-to-increase program in May 2016, and the scale of tax cuts is expected to reach about 680 billion yuan by the first anniversary of April 30 this year. From January 2012 to February 2017, the total scale of tax cuts has exceeded 1200 billion yuan, the largest reduction in recent years.
In 2016, the OECD conducted a third-party assessment of the effects of China's business reform, highly appraised the value-added tax reform in China, and fully affirmed the efforts and practice of the Chinese government in deepening the tax reform and providing reference for all countries. Jeffrey Owens, director of the Center for Global Tax Policy Studies at Vienna University of Economics, argues that VAT can effectively reduce the cost of tax compliance, achieve a more balanced tax structure and promote long-term stable economic growth. At this stage, China's VAT reform not only meets the needs of China's economic development, but also relieves the burden of enterprises by thoroughly opening up the VAT deduction chain and establishing a modern VAT system with world-wide leading significance. He believes that China's experience in business-to-business reform is of great significance to the tax reform of all countries in the world.
Owens said China's ability to carry out this major reform in such a short period of time is due to the government's strategic decision-making ability and the efficient implementation of China's fiscal and taxation system. China's value-added tax reform is not only extensive, but also positive and stable, and the efficiency of reform is amazing.
"Business-to-Business Increase is a milestone in the development of China's tax industry, and many foreign enterprises and their Chinese branches have benefited from it." Jin Banggui, director of the Eurasian Institute of exex Marseille University, France, said. He said that China, like European countries, now uses the advanced VAT tax system, which is an important step forward in the field of Taxation in China.
In 2016, China launched a comprehensive reform of the camp to replace it. Fifty-five days to complete the system design, information system adjustment, more than 10 million enterprises from the ground tax to the transfer of state tax, and complete the tax system transformation; heavy tasks - four major industries complex formats, taxpayers lack of understanding of the value-added tax system, second-hand housing transactions also increased the complexity of more than 10 million natural person taxpayers; High - especially bold attempt and smooth implementation of a comprehensive VAT levy on banking, insurance, securities and other financial services is of pioneering significance internationally.
The first step in solving problems in China is to ensure that the tax system is designed with sound and comprehensive design. According to Wang Jun, in accordance with the requirements of the modern VAT system, to realize the full coverage of goods and services by the "broad tax base" VAT, real estate should be included in the scope of input tax deduction according to the goal of establishing a consumption-oriented VAT system. At the same time, in order to avoid drastic adjustment of interest pattern caused by the reform, transitional policies were arranged during the pilot period to help taxpayers gradually adapt to the new tax system. In addition, after the introduction of the reform, we will continue to supplement and improve policy arrangements and collection and management services to ensure that the reform continues to run smoothly.
It is understood that in order to promote the landing of the reform policy, China's financial and taxation departments have launched a large number of tax service hard measures. For example, China's tax authorities have compiled and distributed nearly 600,000 words of comprehensive pilot guidance materials for the promotion of business reform, trained 21.3 million taxpayers; set up a special line for business reform and increase consultation, receiving an average of 129,000 telephone calls a day; added 17,386 tax windows, creating 9,338 national and local tax joint tax service offices, 36,000 joint tax windows...
"This is a major reform, and the results we have seen so far are very positive and significant. The reform is advancing well and is in line with the highest standards in the world. Pascal Santamann, director of the tax policy and management center of the OECD, commented.
"To everyone's surprise, the Chinese government really overcame technical and institutional difficulties in less than eight weeks and worked out a business-to-business plan and landed smoothly," said Richard Krivo, director of the Business Law and Tax Law Research Center at Monash University in Australia.