The Chinese mainland's national legislature has approved a new value-added tax (VAT) law on Wednesday, set to take effect on January 1, 2026. This new legislation aims to streamline existing tax regulations by consolidating previous rules, including exemptions for certain items. 🚀
VAT remains the largest tax category for the Chinese mainland, contributing approximately 39% of the total tax revenue in 2023. In the first 11 months of 2024, VAT revenue reached around 6.12 trillion yuan ($838 billion), making up about 37.8% of the nation's tax revenue. 💹
The newly approved law comprises six chapters and 38 articles, outlining key provisions such as the scope of VAT taxation, tax rates, and the determination of tax payable. Notably, it introduces a zero tax rate for specific exports and establishes guidelines for tax incentives. Additionally, the law sets a threshold for small-scale taxpayers, providing them with relief under the new system. 🛠️💡
This update is expected to bring significant changes to businesses and consumers alike, potentially simplifying the tax process and offering better support for small businesses in the Chinese mainland. Stay tuned for more updates on how this new VAT law will impact the economy! 🌟📊
