It Is Reported That The VAT Is The Fastest In The Second Half Of The Year.

One of the imperative tax reforms in 12th Five-Year -

"We have not yet received the draft for the pilot expansion, and all the tax reform related to the local government must seek advice from the local authorities and make amendments before it will be promulgated, so it will be introduced in the second half of the year as soon as possible, because the supporting documents will also be issued everywhere."

A local finance and taxation department official told our reporter.

At the beginning of this year, the two municipal committees in Shanghai indicated that they should actively strive for pilot projects to expand the value added tax to support the development of the service sector. However, according to local finance and taxation departments, the pilot project of value-added tax extension will select some industries that currently pay business tax, but it is unlikely to pilot some areas.

We know from authoritative departments that the pilot projects will be selected for pilot projects such as construction, installation, pportation and other producer services.

According to people familiar with the matter, last year, the VAT legislation and the expansion of the VAT were planned to be synchronized, and the draft VAT legislation bill was deliberated this year.

This includes the drafting of the VAT law, including the expansion of VAT and the adjustment of VAT rates.

However, the reform involves many.

"The key reason is that the reform involves the adjustment of the income distribution relationship between the central and local governments."

One insider said.

Since the pilot takes some time, how to coordinate the reform and the legislation has become a problem that the relevant departments have to face. The reporter learned from the authoritative department that the VAT law should be submitted to the Standing Committee of the National People's Congress for the first time after October 2011.

Many scholars believe that legislation and reform should be carried out synchronously, and the legislative process can not be influenced by the legislation.

At present, the finance and taxation department is perfecting the VAT law draft while formulating a pilot scheme for VAT expansion.

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The reform of VAT expansion is to include the scope of the current business tax collection in the scope of value-added tax, and then cancel the business tax.

At present, China's industry and

With the continuous development of the service industry, the drawbacks of the business tax system are highlighted.

"The biggest problem is

Business tax is levied in full on the sales or turnover of an enterprise.

But there are many links in the service industry, such as finance, insurance and trust financing.

As a fast growing service industry, Shanghai has been receiving reports and complaints about business tax system through various channels for many years.

Since September 1, 2010, Shanghai has been the first to pilot the "business tax difference tax administration".

For example, the method stipulates that enterprises engaged in advertising agency business shall take the total income minus the advertising expenses paid to other advertising agencies or media as the tax turnover.

Before this, the enterprise's expenditure is not deducted from the sales volume, and it is taxed in full.

The pilot project in Shanghai covers pportation, construction and finance.

A local finance and taxation official said that the pilot projects in Shanghai could really reduce the burden on enterprises, but they still hoped that the state would introduce a unified policy and abolish the phenomenon of repeated taxation in the service industry. He believed that the difference levy would bring a lot of trouble to tax collection and administration.

"The pilot may only change part of the service industry into value-added tax, but the tax rate of VAT will not change, but if the VAT legislation can be carried out simultaneously, the VAT rate may also be adjusted and should be lowered."

A person familiar with the matter told our reporter.

Now the sales tax is local tax, and it is the largest local tax.

Value added tax is a central local share tax, which is allocated at the ratio of central 75% and local 25%.

Once value-added tax is replaced by business tax, 3/4 of business tax will be turned over to the central government, and local taxes will be greatly affected.

Meanwhile, the central government will surely adjust the VAT between the central and local governments to ensure local vested interests, the people familiar with the matter said.

"If it is a pilot project, we should pay more attention to how to divide the income in the pilot section."

A local finance and taxation department personage said.