Tax burden on four sectors to ease
By Wu Yiyao In Shanghai | China Daily | Updated: 2016-02-01 08:49
Construction, real estate development, financial services and consumer services will be included in China's corporate tax reform program.
The reform seeks to replace sales tax with value-added tax or VAT - that is, tax on output minus tax on input - thus removing duplication of taxes and easing financial burden on enterprises.
Under the new system, companies no longer need to pay sales tax based on their revenue.
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