Category Taxation in China

Macau Advised to Cut Gambling Taxes

January 11, 2017 Taxation in China

gambling taxesMACAU – Macau needs to reduce the taxes on VIP gamblers, or face the risk of losing out to other gambler-friendly countries in the region.

According to the results of new research conducted by Wang Changbin, an academic at the Gaming Teaching and Research Centre of the Macao Polytechnic Institute, the government of Macau should lower its taxes on gambling, in order to stay competitive in Asia.

Currently the overall tax burden faced by Casinos in Macau equates to an average of 39 percent on all gambling revenues, although the exact rate may vary based on the exact nature of the gambling and the clientele.

Wang Changbin suggested that Macau could investigate the feasibility of implementing a tax model similar to the one used in Singapore.

Gambling taxes in Singapore are currently set at 15...

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China Enacts Tax on Luxury Cars

December 2, 2016 Taxation in China

Tax on luxury cars in ChinaBEIJING – High-price big-engined cars in China will soon face taxes of as much as 50 percent, as the government looks to reduce emissions levels and social inequality.

Earlier this week the government of China announced that it would enact a new tax on the sale of luxury and supercars, in an effort to rein in automotive emissions and control the lavish spending of the country’s elites.

The new tax will be levied at a rate of 10 percent of the purchase price of any vehicle valued at more than CNY 1.3 million (approx. USD 189 thousand).

The tax is targeted at foreign-made imported cars, and, at this stage, does not apply to any models made in China.

Luxury cars in China already face a tax based on their engine size, with large models facing taxes of up to 40 percent.

Several high-end car...

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China Completes VAT Implementation

May 2, 2016 Taxation in China

BEIJING – Over the weekend China completed the last step in its VAT system transformation.

As of May 1st all businesses in China fall under the scope of the country’s new VAT system, with the previously implemented Revenue tax system being dropped entirely.

VAT is a 11 percent tax charged on the difference between the sale price of a good or service and the manufacturing or purchase price paid by the retailer.

The Revenue Tax system, on the other hand, was a 5.5 percent tax levied on the gross revenues received by the business.

The VAT system has been progressively implemented in different business sectors in China over since 2012, and over the recent weekend the construction, real estate, finance and consumer services sectors were the final sectors to be shifted to the VAT system.


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Tax Collections Jump 9.8% in China

April 21, 2016 Taxation in China

BEIJING – Tax collections in China are on the rise, with several industries showing significant growth in activity and profits.

On April 20th the State Administration of Taxation of China issued a new statement saying that over the first quarter of 2016 tax collections reached a level of RMB 2.979 trillion (approx. USD 461 billion).

The tax collections over the first three months of 2016 were approximately 9.8 percent higher than the tax collections over the same three months over the course of 2015.

Approximately 56.5 percent of all the tax revenues were collected from businesses in the tertiary industry.

The revenues collected over the first three months from the tertiary industry grew by 12 percent compared to the same period last year.

Significant revenues growth was also seen in the...

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Tax Breaks Boost Car Sales in China

January 13, 2016 Taxation in China

BEIJING – Tax breaks are leading to an increase in car sales in China, and the positive effect is expected to last through to at least the end of this year.

The implementation of a tax break on automobile sales has led to growth in the industry in 2015, although the rise was not as significant as expected.

It was previously expected that by the China Automobile Association that the automobile industry in the country would reach a level of 3 percent, and in reality the level actually reached 4.7 percent.

The higher-than-expected growth have been attributed to the government’s tax break on the sale of small-engine cars.

Currently, anyone purchasing a car in China will see the standard 10 percent sales tax hiked, if the car has an engine not exceeding 1.6 litres.

The tax break is schedule...

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