25 August 2019

VAT reform may expand to banks, insurers, paper says

China might include banks and insurers in a value-added tax reform next year, Shanghai Daily reported Thursday, citing a tax expert. The report cited Ernst & Young indirect tax partner Kenneth Leung as saying that banks may have to pay 11 percent VAT next year, as opposed to the 5 percent turnover tax they pay now. Leung said it could take a year for the authorities and financial institutions to fully prepare for the changes, which might also apply to insurance companies next year.

– Contact HKEJ [email protected]


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