Brighture Newsletter
December 17, 2021
Kreston firm, Brighture, share their expertise in their latest newsletter covering financial news and updates from China.
Country: China (CN)
News
News
August Update: Recent changes on Chinese tax policy
August 27, 2021
One of our key firms in China, Brighture, has published its August update on recent alterations to Chinese tax and finance policy.
- In order to support the housing rental market, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) issued the Announcement of the Ministry of Housing and Urban-Rural Development on Improving Tax Policies Related to Housing Rental (MOF SAT [2021] No. 24,), which stipulates that:
(1) For the total rental income obtained by general VAT payer in the housing leasing enterprise from leasing the housing to individuals, it may elect to apply the simple tax method, that is, calculate and pay VAT at the reduced rate of 1.5% on the basis of 5% collecting rate, or apply the general calculation method. Small-scale VAT payers in housing leasing enterprises who lease housing to individuals shall pay VAT at the reduced rate of 1.5% on the basis of 5% collecting rate.
(2) For enterprises, public institutions, social organizations and other organizations that lease housing to individuals or specialized large-scale housing leasing enterprises, property tax shall be collected at a reduced rate of 4%.
(3) The “housing leasing enterprises” mentioned herein refers to the enterprises engaged in housing leasing business that have reported to or filed with the housing and urban and rural construction department subject to relevant regulations. The criteria for specialized large-scale housing leasing enterprises mentioned herein are as follows: the enterprises hold or operate more than 1,000 units (rooms) of rental housing or have a floor area of more than 30,000 square meters in the cities where they reported to or filed with the housing and urban and rural construction
department. The housing and urban and rural construction departments of the provinces, autonomous regions and municipalities directly under the Central Government, together with the financial and tax departments at the same level, may, in light of the development of the rental market, lower the criteria within a range of 50% for all or part of the cities in their respective regions.
(4) This announcement will take effect on October 1, 2021. - In order to promote the quality development of the steel industry, the Ministry of Finance (MOF) and the State Administration of Taxation (SAT) issued the Announcement on The Cancellation of Export Tax Rebate of Steel Products (MOF SAT [2021] No. 25,), which stipulates:
Effective August 1, 2021, the export tax rebates for 23 steel products in the list attached hereto shall be cancelled. The specific execution time shall be as per the date indicated on the export declaration form. - To implement the policy of the CPC Central Committee on optimizing the family planning and promoting longterm balanced population growth, especially the three-child policy, the Office of National Healthcare Security Administration (ONHSA) issued the Notice on Supporting Maternity Insurance and the Three-Child Policy [ONHSA (2021) No. 36], which stipulates:
To ensure that the cost of a third child of the insured female workers is covered by maternity insurance, and local medical insurance departments shall pay the maternity medical expenses and maternity allowances in full and in time in accordance with regulations. The maternity rights and interests of the insured shall be effectively protected. In addition, medical treatment for childbirth by urban and rural residents shall be ensured and their newborn babies are covered by insurance.
