On the afternoon of May 19th, 2017, the government of Baoying Economic Development Zone and the first branch of National Tax Bureau interpreted the new tax policy of replacing business tax with value-added tax to the enterprises, and pushed the experiment into depth.

From May 1st of this year, China fully started the experiment of replacing business tax with value-added tax. Architecture industry, real-estate industry, financial industry and life service industry were all included in the experiment. Among them, the tax rates for architecture industry and real-estate industry were set at 11%, and the ones for financial industry and life service industry were set at 6%. According to the plan, replacing business tax with value-added tax is good at reducing repeated tax collection, and the implementation of the experiment can feasibly reduce the tax burden of enterprises.

For the experiment just started, most enterprises have not had a deep understanding of the policy. After the interpretation, the enterprises were able to deepen their understanding of the policy. Currently, there are already some enterprises gaining benefit from this new policy.

‘Regarding to the real difficulties faced by the enterprises, we continuously offer various service, to help the enterprises better deal with tax related matters.’ Said by the person in charge of the first branch of National Tax Bureau. He said they prepared thousands of reminding cards related to tax matter to distribute to the enterprises in the Zone. The content of the card include newest tax policies of the related industries, which can reduce the blindness of the taxpayers.

Liu Hongbing, CFO of Ramada Hotel, said’ after the implementation of the new tax policy, we paid 30%-40% less tax, which is a real benefit. After this time’s interpretation of the new policy, we have deeper understanding of it. Thank the government and National Tax Bureau for reducing our burden’.