China'S Value-Added Tax Rate In Some Industries Has Been Reduced To 3%.

< p > > a href= "http://sjfzxm.com/news/index_f.asp" > Ministry of Finance < /a > and the State Administration of Taxation jointly issued the notice on the policy of levying value added tax rate, and decided that the rate of VAT collection of 6% and 4% two should be adjusted to 3% from July 1st this year.

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Last week's decision of the Executive Council of the State Council decided that from July 1st this year, the collection rate of 6%, 5%, 4%, 3% four of value-added tax applicable to tap water, small hydropower and other general taxpayers will be merged into one file, and the rate of 3% should be implemented according to the current simple tax assessment method.

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< p > however, the notice issued by the Ministry of Finance yesterday only dealt with the third, 3%, 4% and 6% collection rates, and did not mention the 5% rate.

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< p > our country has two main types of VAT levy: the tax rate of value-added tax, which is mainly applicable to the general taxpayer who has VAT sales exceeding 5 million yuan annually. The rate of VAT levy is mainly applicable to small scale taxpayers and specific general taxpayers.

Small scale taxpayers levy a unified rate of 3%; for some specific general taxpayers, the 6%, 5%, 4%, 3% four filing rates are applicable.

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< p > in specific terms, 6% of the items collected include tap water, small hydropower, construction products and biological products; the rate of 5% is the crude oil and natural gas extracted from Sino foreign cooperation; the items with a 4% rate of collection include consignment, pawn and auction commodities; and the rate of 3% is the taxable service of public pportation and other business pformation.

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< p > < < a href= > http://sjfzxm.com/news/index_z.asp > > /a > means that after July 1st this year, some general taxpayers and small taxpayers will uniformly apply the collection rate of 3% and levy taxes according to the simple tax calculation method.

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< p > "the devaluation tax rate policy on the one hand is reflected in the degeneracy of the levy rate, further standardizing the tax system and fair tax burden. On the other hand, it has the color of tax reduction, and the rate of collection of 3%, 4% and 6% is reduced to 3%, which is very beneficial to the related enterprises.

Moreover, the detraction of the levy rate has laid a good foundation for the future tax rate degeneracy.

Zhong Han tax partner Wang Jun told the Securities Times reporter.

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< p > Wang Jun said that last week's executive meeting of the State Council pointed out that the four file levy rate was merged into one file, which would reduce the tax for the enterprises in related fields by 24 billion yuan each year.

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< p > industry experts believe that although the overall reduction of tax is about 24 billion yuan, the scale is not large, but because these industries, especially the construction industry, are also attracting large numbers of employment. This will stimulate the development of the industry, and help to better protect employment and benefit people's livelihood.

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< p > according to the current pilot scheme of "business pformation to increase", the small scale taxpayers who are engaged in the pilot industry of the business pformation and upgrading will provide taxable services and specific items of general taxpayers, and apply 3% < a href= "http://sjfzxm.com/news/index_p.asp" > levy rate < /a >.

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< p > Wang Jun believes that on the basis of the combined levy rate, we should further open up the "old value-added tax" tax rate and the "new value-added tax" tax rate in the future, so as to achieve the unification of tax rates.

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