• With all remaining sectors (real estate and construction, financial service, hospitality, food & beverage, healthcare, education, cultural & entertainment services, etc.) transitioning from Business Tax ("BT") to Value Added Tax ("VAT") nationwide with effect from 1 May 2016, VAT has now completely replaced BT in China. China's VAT system uses multiple VAT rates and the commonly used rates are 3%, 6%, 11%, 13% and 17%. The VAT reform aimed to promote development of the service sector.
  • To fulfill the commitment of the G20 countries to help developing countries improve their ability in taxation collection and management and deepen cooperation, China on 14 March 2016 opened an OECD-SAT multilateral tax centre in Yangzhou, China. This centre, first of its kind in a country outside OECD members, is designed to provide training to tax officials in China and those coming from other developing countries and to provide country officials with the opportunity to further understand the OECD's current initiatives. It is intended to benefit all participating countries. China is increasing its involvement in the international tax landscape by providing assistance to developing countries' tax administration upgrades, helping them to shape their tax administration, particularly those along the Belt and Road.

These initiatives may be a step taken for China to have a greater influence in the global tax policy and administration in the future.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.