1.【China Hot Topic】If one’s vehicle and vessel tax is withheld by insurance company somewhere else other than the place where the vehicle or vessel is registered, is it still necessary to pay vehicle and vessel tax to the local tax authority where the vehicle or vessel is registered?
【Lee & Lee Associates Insights】According to the Notice issued by SAT concerning Vehicle and Vessel Tax (guoshuifa(2008) No 48), within a tax year, if vehicle and vessel tax is withheld by insurance company in any place other than the place where the vehicle or vessel is registered and the tax payer canprovide legal tax payment certificates, then the tax payeris not subject to vehicle and vessel tax again to the local tax authority where the vehicle or vessel is registered.
2.【China Economy News】The third stage of exemptions of the Early Harvest Program was launched on the beginning of January 2013. Now, the total 806 types of products under the Economic Cooperation Framework Agreement (ECFA) between the Chinese mainland and Taiwan are tariff-free.
【Lee & Lee Associates Insights】The Early Harvest Program, implemented two years ago, is designed to enablepeople across the Taiwan Strait to enjoy the “bonus”of the ECFA before the full liberalization of economic ties between the mainland China and Taiwan. Statistics showed that from January 2011 to October 2012, the program has exempted the tariffs of USD 551 million for Taiwan businesses.
3.【China Taxation News】As resolved at the 212nd Conference of the State Council, the transportation industry and some modern service sectors were levied with VAT instead of Business Tax since 1 January 2012 starting from Shanghai. Now, this conversion has been applied to Beijing and other eight provinces, covering the north, east, central and south parts of China and several economic zones like the Bohai Economic Rim, Yangtze River Delta Economic Zone, Pearl River Delta etc.
【Lee & Lee Associates Insights】The purposes of this conversion from Business Tax to VAT in service sector are to a)eliminate the double taxation, b) encourage the development of modern service industry, and c) integrate the second and third industry.
4.【China Taxation News】Starting from 1 January 2013, China will lower the tariffs of more than 780 imported products covering 5 categories as part of a major effort to boost domestic consumption.
【Lee & Lee Associates Insights】Tariffs are mainly lowered on consumption goods while it used to focus on the resource products and advanced equipments. Especially the rate for part of the infant milk powder is reduced to 5%, significantly lower than the most-favored-nation tariff.
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