What Is Tax Reform?

Tax system reform is a process of improving social welfare through tax system design and marginal changes in tax system structure. There may be many forms of tax reform, including changes in tax rates, tax grades, thresholds or exemptions, and changes in the tax base, the introduction of new taxes and the abandonment of old taxes, and changes in the mix of taxes. The main contents of the tax reform are that the value-added tax should be changed from production to consumption, and enterprises should be encouraged to invest in fixed assets. At the same time, the scope of value-added tax is further expanded. Industries such as transportation and post and telecommunications will pay VAT instead. It is also possible that the estate tax will be introduced.

Tax Reform

Tax system reform is a process of improving social welfare through tax system design and marginal changes in tax system structure. There may be many forms of tax reform, including changes in tax rates, tax grades, thresholds or exemptions, and changes in the tax base, the introduction of new taxes and the abandonment of old taxes, and changes in the mix of taxes. The main contents of the tax reform are

2 Hot Issues in China's Tax Reform in 010

Impact of property tax reform on tax reform

First of all, you need to understand that "real estate tax" and "real estate tax" are two different concepts. The former refers to a type of tax, while the latter is a general term for real estate and land related taxes such as property tax and land value-added tax.

In the process of real estate regulation and control, according to the special situation of China's real estate market in the past two years, the government has adopted measures to restrict purchases to curb excessively rapid rises in house prices. Because purchase restriction is an administrative method, people always hope to use economic means to replace it. Property tax is considered the best way to replace the purchase restriction measure. As soon as news of the expansion of the property tax pilot came out, some people speculated whether the purchase restriction measures would be withdrawn.

In fact, purchase restriction and property tax are different means. Even if the property tax can play a regulating role, it is difficult to replace the purchase restriction measure. With speculative expectations in the real estate market, purchase restrictions are the most effective measure and an expedient measure that has to be adopted. When hot money and private funds more enter the real economy, and the real estate market returns to normal, purchase restrictions will naturally be lifted, so there is no need to imagine the use of real estate taxes to replace purchase restrictions. The necessity of property tax reform

According to China's national conditions, the necessity of extending real estate tax to individual housing is to regulate individual housing consumption, save housing resources, and at the same time have a certain anticipatory effect on housing speculation.

The biggest effect of China's tax reform in 1994 was to initially establish a mechanism for stable growth of fiscal revenue. After the reform of the tax system, taxes have become the main source of fiscal revenue. Since then, we have continued to adjust and improve the tax system, especially as the tax collection and management system lags behind

1993 Tax reform 1993

On March 15, Premier Peng of the State Council stated in the "Government Work Report" made at the first plenary session of the Eighth National People's Congress that it is necessary to further reform the fiscal and taxation system and rationalize the distribution between the central and local governments and the state and enterprises. Relationship, the meeting approved the report.

On April 19, the State Council issued the Notice on the Establishment of the State Council, renamed the State Administration of Taxation to be the State Administration of Taxation, and upgraded to an agency directly under the State Council. Jin Xin, former director of the State Administration of Taxation, continued to serve as director.

On April 23 and 29, the General Secretary of the CPC Central Committee Jiang Zemin presided over two meetings of the Central Finance and Economics Leading Group, heard reports from the Ministry of Finance and the State Administration of Taxation on fiscal and taxation work, studied tax system reform and fiscal management system reform, and Put forward requirements for fiscal and taxation work.

On April 28, Jiang Zemin, General Secretary of the CPC Central Committee, heard reports from the State Administration of Taxation Jin Xin and Deputy Commissioner Yang Chongchun on taxation work.

On May 18, the CPC Central Commission for Discipline Inspection and the Ministry of Supervision issued the "Opinions on the Establishment of Disciplinary Inspection and Supervision Institutions Directly Under the Central Government and Central State Organs", which proposed that the Central Commission for Discipline Inspection and the Ministry of Supervision establish a disciplinary inspection and supervision agency at the State Administration of Taxation.

From July 20th to 26th, the State Administration of Taxation held a National Conference of Tax Commissioners in Beijing to focus on strengthening macro-control issues. Zhu Rongji, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, addressed the meeting.

On July 23, the State Council issued the Notice on Strengthening Tax Administration and Strictly Controlling Tax Reduction and Exemption.

From the end of August to early September, the Office of the Prime Minister of the State Council, the Executive Meeting of the State Council, and the Standing Committee of the Political Bureau of the CPC Central Committee discussed and approved in principle the tax reform plan drafted by the State Administration of Taxation and the reform plan of the tax-sharing fiscal management system drafted by the Ministry of Finance.

On October 31, the fourth meeting of the Standing Committee of the Eighth National People's Congress passed the "Decision on Amending the" Personal Income Tax Law of the People's Republic of China "", which was announced on the same day, and came into effect on January 1, 1994. Interim Regulations of the People's Republic of China on Urban and Rural Individual Business Income Tax and the Interim Regulations of the People's Republic of China on Individual Income Regulation Tax.

On November 6, the State Administration of Taxation revised and promulgated the Rules for Tax Administrative Reconsideration.

On November 14, the Third Plenary Session of the Fourteenth Central Committee of the Communist Party of China adopted the Decision of the Central Committee of the Communist Party of China on Several Issues Concerning the Establishment of a Socialist Market Economy System, in which provisions on taxation were made.

On November 16, the State Council issued the "Notice on Relevant Issues Concerning the Establishment of the State Administration of Taxation's Directly Administered Tax Authorities and Local Taxation Bureaus".

On December 13, the State Council issued the Interim Regulations of the People's Republic of China on Value Added Tax, the Interim Regulations of the People's Republic of China on Consumption Tax, the Interim Regulations of the People's Republic of China on Business Tax, the Interim Regulations of the People's Republic of China on Enterprise Income Tax, and the Land of the People's Republic of China The Provisional Regulations on Value Added Tax will be implemented from January 1, 1994. At the same time, product tax, salt tax, special consumption tax, state-owned enterprise income tax, state-owned enterprise adjustment tax, collective enterprise income tax and private enterprise income tax will be cancelled.

On December 15, the State Council issued the "Decision on Implementing a Tax-sharing Financial Management System."

On December 20, the State Council issued a notice to adjust the agency's specifications from the deputy ministerial level to the ministerial level.

On December 23, with the approval of the State Council, the Ministry of Finance promulgated the "Administrative Measures for the Invoice of the People's Republic of China", which will take effect immediately.

On December 25, the State Council approved the "Implementation Plan for the Reform of the Industrial and Commercial Tax System" submitted by the State Administration of Taxation, which came into effect on January 1, 1994.

On the same day, the State Council promulgated the "Interim Regulations of the People's Republic of China on Resource Tax", which came into effect on January 1, 1994.

On December 29, the Fifth Meeting of the Standing Committee of the Eighth National People's Congress passed the "Decision of the Standing Committee of the National People's Congress on the Application of Interim Regulations on Value-added Tax, Consumption Tax, and Business Tax by Foreign-invested Enterprises and Foreign Enterprises", which stipulates that Investment enterprises and foreign enterprises shall apply the Provisional Regulations on Value Added Tax, the Provisional Regulations on Consumption Tax and the Provisional Regulations on Business Tax promulgated by the State Council from January 1, 1994, and repeal the "Regulations on Industrial and Commercial Unified Tax (Draft)".

1994 Tax Reform 1994

On January 23, the State Council issued the "Notice on the Cancellation of Market Transaction Tax, Livestock Trading Tax, Special Oil Burning Tax, Bonus Tax, Wage Adjustment Tax, and Devolution of Slaughter Tax and Banquet Tax to Local Management".

On January 27, the CPC Central Committee agreed to establish a party group of the State Administration of Taxation of the Communist Party of China, with Jin Xin serving as secretary.

On January 30, the State Council promulgated the "Regulations on Levying Agricultural Taxes on Agricultural Specialty Income", which will be implemented with immediate effect.

On February 5, the State Council appointed the Minister of Finance Liu Zhongli as the director of the State Administration of Taxation, and Jin Xin and others as the deputy directors of the State Administration of Taxation.

On February 22, the State Council issued the "Notice on Issues Concerning the Provisional Regulations on the Application of Value Added Tax, Consumption Tax, and Business Tax on Foreign-Invested Enterprises and Foreign Enterprises".

On March 16th, with the approval of the State Council, the General Office of the State Council issued the "Structure of the State Administration of Taxation's Functional Allocation, Internal Institutions and Staffing".

On June 4, the State Administration of Taxation issued the "Opinions on Formulating the Functional Allocation, Internal Institutions, and Staffing Plans of the State Taxation Bureaus of Provinces, Autonomous Regions, and Municipalities."

1995 Tax reform 1995

On January 6, the Central Committee of the Communist Party of China appointed Xiang Huaicheng as party secretary of the State Administration of Taxation of the Communist Party of China.

On January 18, the State Administration of Taxation held a conference in Beijing to celebrate the 45th anniversary of the establishment of the Bureau.

On February 28, the Twelfth Meeting of the Standing Committee of the Eighth National People's Congress passed the "Decision on Amending the" People's Republic of China Tax Collection and Management Law ", which was announced and implemented on the same day.

On May 31, the State Council convened a working conference on cracking down on illegal export tax fraud activities in Beijing. State Councilor Luo Gan chaired the meeting. Zhu Rongji, Vice Premier Li Lanqing and President of the Supreme People's Court Ren Jianxin attended the meeting and delivered speeches.

On August 8-11, the State Administration of Taxation held a national ideological and political work conference on the tax system in Beidaihe. Zhu Rongji, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, addressed the meeting.

On October 30, the Sixteenth Meeting of the Standing Committee of the Eighth National People's Congress adopted the Decision on Punishment of Crimes of False Opening, Forgery, and Illegal Sale of Special VAT Invoices, which will be announced and implemented on the same day.

1996 Tax reform 1996

On January 21, the State Council issued the "Decision on Resolutely Combating Defrauding Export Tax Rebates and Severely Punishing Financial and Fiscal Tax Violations". On March 17, the Fourth Session of the Eighth National People's Congress approved the "Ninth Five-Year Plan" of the National Economic and Social Development of the People's Republic of China and the Outline of 2010 Vision Goals, which proposed measures on taxation.

From December 17 to 21, the State Administration of Taxation held a national tax work conference in Beijing. Zhu Rongji, member of the Standing Committee of the Political Bureau of the CPC Central Committee and vice premier of the State Council, addressed the meeting.

1997 Tax reform 1997

On January 23, with the approval of the State Council, the General Office of the State Council forwarded the "Deepening Tax Reform and Management Plan" submitted by the State Administration of Taxation.

On February 18, the State Council approved the Opinions on Strengthening the Tax Collection and Management of Individual and Private Economy and Strengthening the Audit and Collection Work reported by the State Administration of Taxation.

On February 19, the State Council issued the "Notice on Relevant Issues Regarding the Adjustment of Tax Policies for the Financial Insurance Industry".

On February 25, the State Council issued the "Notice on the Implementation of Measures for the Exemption, Credit, and Rebate of Exported Goods Produced by Enterprises or Entrusted as Agents".

On March 14, the Fifth Session of the Eighth National People's Congress passed the revised Criminal Law of the People's Republic of China, which added Chapter III, Section VI, Crimes against Tax Collection and Administration, and Other Intervening Tax Provisions.

On July 7, the State Council promulgated the "Interim Regulations on the Deed Tax of the People's Republic of China", which will come into effect on October 1.

On the same day, with the approval of the State Council, the Ministry of Finance and the State Administration of Taxation issued the "Interim Measures for the Administration of Collection of Cultural Undertaking Construction Fees", which will be effective immediately, which stipulates that cultural undertaking construction fees shall be collected by local taxation bureaus.

On September 12, Jiang Zemin, general secretary of the CPC Central Committee, discussed tax issues in a report made by the 15th National Congress of the Communist Party of China.

On October 21, the State Council issued the "Notice on the Management System of Local Tax Institutions".

1998 Tax Reform 1998

On March 12, the State Council issued the "Notice on Strengthening the Strict Tax Management Authority for Governing Taxes According to Law."

On March 18, the CPC Central Committee appointed Jin Renqing as party secretary of the State Administration of Taxation of the Communist Party of China.

On March 31, the State Council appointed Jin Renqing as the director of the State Administration of Taxation.

On April 22, Li Lanqing, member of the Standing Committee of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, inspected the State Administration of Taxation and listened to its report on taxation work.

On June 22, with the approval of the State Council, the General Office of the State Council issued the "Regulations on the Functional Allocation, Internal Institutions and Staffing of the State Administration of Taxation".

1999 Tax reform 1999

On January 22, the State Council issued the "Interim Regulations on the Collection and Payment of Social Insurance Premiums", which stipulates that the collection agencies for social insurance premiums are regulated by the provincial people's governments and can be collected by tax authorities.

On March 29, Li Lanqing, member of the Standing Committee of the Political Bureau of the CPC Central Committee and deputy prime minister of the State Council, sent a letter to the National Tax Promotion Month, calling on the country to vigorously carry out tax promotion activities to enhance the awareness of taxation among the people.

On August 30, the Eleventh Meeting of the Standing Committee of the Ninth National People's Congress passed the "Decision on Amending the" People's Republic of China Individual Income Tax Law ".

On September 23, the State Administration of Taxation issued the revised "Administrative Tax Reconsideration Rules (Trial)", which came into effect on October 1.

2000 Tax reform in 2000

On January 11th, the State Council issued the "Notice on Correcting Local Self-Developed Tax Return Policy".

From January 12th to 19th, the Central Committee of the Communist Party of China held a seminar on finance and taxation for leading provincial and ministerial leaders at the Party School of the Central Committee of the Communist Party of China. Standing Committee Member, Premier Zhu Rongji of the State Council and Li Lanqing, Member of the Politburo Standing Committee of the Communist Party of China, and Vice Premier Li Lanqing of the State Council gave reports to the trainees. Jiang Zemin, General Secretary of the CPC Central Committee, State President, and Chairman of the Central Military Commission attended the seminar closing ceremony and delivered important speeches.

On February 12, with the approval of the State Council, the General Office of the State Council forwarded the Opinions on the Comprehensive Promotion and Application of VAT Anti-Counterfeiting Tax Control System submitted by the State Administration of Taxation.

On March 2, the Central Committee of the Communist Party of China and the State Council issued the "Notice on Pilot Work on Rural Tax and Fee Reform."

On March 15, the Third Session of the Ninth National People's Congress passed the Legislative Law of the People's Republic of China, which made provisions on taxation.

On September 25, the State Administration of Taxation issued documents such as the Provisions on the Functional Allocation, Internal Organizations, and Staffing of the State Administration of Taxation of Provinces, Autonomous Regions, and Municipalities.

On October 22, the State Council approved the "Transportation and Vehicle Tax and Fee Reform Implementation Plan" submitted by 12 units including the Ministry of Finance and the State Administration of Taxation.

On the same day, the State Council issued the "Interim Regulations on Vehicle Purchase Tax of the People's Republic of China", which came into effect on January 1, 2001.

On November 8, with the approval of the State Council, the Ministry of Finance, the Ministry of Communications and the General Administration of Customs issued the "Notice on Including Vessel Tonnage Tax in Budget Management", which will be implemented from January 1, 2001.

On November 17, the State Council convened a national working conference on cracking down on export tax rebates in Beijing. The meeting was chaired by Wu Yi, State Councilor and the leader of the State Council's Leading Group on Combating Export Tax Rebates. Premier Zhu Rongji, Vice Premier Li Lanqing and State Councillors Luo Gan and Wang Zhongyu attended the meeting. Zhu Rongji made an important speech.

2011 Tax reform in 2011

With the approval of the State Council, the Ministry of Finance and the State Administration of Taxation have jointly issued a pilot scheme for changing business tax to value-added tax. From January 1, 2012, a pilot program of changing business tax to value-added tax in Shanghai's transportation industry and some modern service industries has been launched. At this point, the reform of the tax system for goods and services has begun.

2013 Tax reform 2013

On May 24th, the Ministry of Finance and the State Administration of Taxation issued the "Notice on Developing a National Taxation Policy for the Reform of Levy of Business Taxes on Transportation and Certain Modern Service Industries in China" Caishui [2013] No. 37. Starting on the 1st, provisions will be made for carrying out pilot reforms in the transportation and some modern service industries across the country.