At the Executive Meeting of the State Council held on March 28, Premier Li Keqiang announced additional VAT reform measures directed towards easing the overall tax burden for taxpayers. By way of a recap, last July China eliminated their 13% by making eligible transactions now subject to tax at 11%.
This time, effective May 1, 2018, the VAT rate applicable to the manufacturing sector will be reduced from 17% to 16%. Likewise, VAT on other sectors including transportation, construction, basic telecommunications, as well as agricultural products will be reduced from 11% to 10%. For official information, please feel free to review the details, here.
