Policy digest

VAT revised as business tax is abolished

Interim regulations on value-added tax have been revised while the business tax has been abolished, according to a State Council decree signed by Premier Li Keqiang and released on Friday.

The new regulations took effect immediately after their release. According to the new regulations, all enterprises and individuals engaged in the sale of goods, processing, repairs and replacement or sales services, intangible properties, real estate, and imports of goods within China come under the value-added tax, and should pay the tax in line with regulations.