1. Friday May 25, 2018
      Home > News > Economy
      Text:| Print|

      Taxing times for China's tax reformers

      2012-08-20 09:56 China Daily     Web Editor: Liu Xian comment
      A series of policy measures adopted by Chinese authorities seems to have had little positive effect on the world's second largest economy, which expanded at its slowest pace in three years in the second quarter at 7.6 percent. However, tax reform is likely to give a shot in the arm to industries because it will lead to a reduction in tax bills of more than 100 billion yuan ($16.7 billion) once expanded nationwide, experts say. [Photo/China Daily]

      A series of policy measures adopted by Chinese authorities seems to have had little positive effect on the world's second largest economy, which expanded at its slowest pace in three years in the second quarter at 7.6 percent. However, tax reform is likely to give a shot in the arm to industries because it will lead to a reduction in tax bills of more than 100 billion yuan ($16.7 billion) once expanded nationwide, experts say. [Photo/China Daily]

      Changes in VAT will benefit some companies but hurt others: Experts

      It has been quite a busy month for Su Chenhui, financial manager at LabCorp Clinical Trials, but more challenges seem to lie in the months ahead.

      To prepare his company for the value-added tax reform that will become effective on Sept 1, Su has been sent to two training sessions organized by the local tax bureau and his tax adviser.

      What Su has learned was that there might be more paperwork to deal with, tougher supervision from authorities and the possibility of renegotiating contracts with clients of his company, a Beijing-based US medical test service provider.

      Fortunately, however, all the hard work will pay off once his company adopts VAT instead of business tax.

      "Under the new system, the company will be eligible for a deduction of 17 percent VAT in our material costs, mainly reagent in our case, which accounted for about 40 percent of our revenue.

      "That will translate to a saving in taxation equivalent to 6.8 percent of our revenue, which is even more than the 6 percent VAT we are required to pay," Su said.

      LabCorp's case is not unique, as the policy will also benefit 138,000 other corporate taxpayers in modern-service and transportation sectors that will be involved in the tax reform in the capital city.

      Instead of paying business tax on all transactions in the industrial chain, modern service providers will pay 6 percent VAT. Transporters will be charged 11 percent VAT. Both levies are deductible with the input tax receipt from their suppliers.

      According to a statement from the local tax authorities, the program is expected to save Beijing's businesses 16.5 billion yuan ($2.6 billion) a year.

      "As for our company, it is reflected in a lower break-even point," Su said.

      "We would have to achieve at least 24 million yuan annual sales before starting to make profits if still paying business tax but, under VAT, the company could start making money at 20 million yuan sales."

      Backed by the favorable conditions, LabCorp Clinical Trials Beijing is expecting a 15 percent growth in annual revenue, according to the financial manager.

      This is exactly the result policy makers want to see when they pushed forward VAT reform in the first place. Later it will be expanded across eight other provinces.

      Comments (0)

      Copyright ©1999-2011 Chinanews.com. All rights reserved.
      Reproduction in whole or in part without permission is prohibited.

      主站蜘蛛池模板: 精品香蕉在线观看免费| www成人免费观看网站| 青青青亚洲精品国产| 美女扒开屁股让男人桶爽免费| 免费无遮挡无遮羞在线看 | 亚洲无吗在线视频| 亚洲熟妇无码一区二区三区导航 | 青青青视频免费观看| 日本高清免费观看| 免免费国产AAAAA片| 免费一级大黄特色大片| 亚洲自偷自偷图片| 亚洲无成人网77777| 国产偷国产偷亚洲高清在线 | 成年大片免费视频播放一级| 免费国产叼嘿视频大全网站| 黄页网站在线看免费| 亚洲成a人无码av波多野按摩 | 亚洲AV日韩AV天堂久久| 亚洲色欲色欱wwW在线| 一级午夜a毛片免费视频| 最近中文字幕2019高清免费| 日韩一区二区三区免费体验| 亚洲人成人网站色www| 亚洲AV无码一区二区三区人| 免费人成大片在线观看播放| 午夜理伦剧场免费| 国产成人免费网站在线观看| 久久久久久久久亚洲| 亚洲αⅴ无码乱码在线观看性色| a级毛片在线视频免费观看| 成年人性生活免费视频| 亚洲人色婷婷成人网站在线观看| 色在线亚洲视频www| 视频免费在线观看| 日韩中文字幕免费| 亚洲第一永久在线观看| 国产成人无码精品久久久免费| 国产99视频精品免费观看7| 中文亚洲AV片不卡在线观看| 伊人久久亚洲综合影院首页|