Port communicationThe tax burden has dropped significantly within 2 months of the VAT reform. The next step in tax reform will be VAT legislation. On May 1, my country will launch the VAT reform plan.，since two months，With the VAT rate cut by one percentage point，The corporate tax burden has been significantly reduced 。 Take manufacturing as an example，After the value-added tax rate was reduced from the original 17% to 16%，The annual tax reduction scale for the manufacturing industry exceeds one-third of the total tax reduction scale for all industries。
“In addition to lowering the tax burden，VAT makes deduction links more complete，It also provides technical support for the next step of legislative work.。" Analysis by Jiang Zhen, associate researcher at the Institute of Financial Strategy, Chinese Academy of Social Sciences。
According to the executive meeting of the State Council
Require
，VAT reform includes lowering VAT rates、Expansion of small-scale VAT taxpayers、Three measures including a one-time refund for the input tax that some enterprises have not fully deducted within a certain period of time，The annual tax reduction is expected to exceed 400 billion yuan，Domestic and foreign-funded enterprises will benefit equally。
Manufacturing industry reduces tax burden “Baoshan Iron and Steel Co., Ltd. is expected to not only reduce value-added tax by 120 million yuan，It also saved more than 27 million yuan in additional taxes such as urban construction tax based on value-added tax.;Shenzhen Benz Automobile Co., Ltd. expects to reduce taxes and fees by a total of 220 million yuan due to the reduction in the value-added tax rate.;Chongqing Lifan Automobile Co., Ltd. is expected to save more than 20 million yuan after reducing the value-added tax rate.。
”June 28th，The relevant person in charge of the State Administration of Taxation made the above analysis when summarizing the impact of the VAT rate reduction on enterprises.。 In many industries with value-added tax，The burden on the manufacturing industry has been significantly reduced due to changes in tax rates.。According to calculations by the Goods and Services Tax Department of the State Administration of Taxation，After adjustment of manufacturing tax rate，Its annual tax reduction scale exceeds 1/3 of the total tax reduction scale of all industries，Corporate tax burden is effectively reduced。
According to Li Jing, deputy director of the Finance Department of China Railway Engineering Group，After the value-added tax rate was reduced by 1 percentage point，The tax burden on construction projects subject to the general tax calculation method will inevitably decrease，And drive down the overall tax burden of enterprises。With a gross profit margin of 12%、Net interest rate 2%，17% originally applied、11%tax rate，Take a project where the procurement cost accounts for 47% of the total cost as an example.，After the tax rate reduction, the VAT burden was reduced by nearly 1/5。
Wang Daoshu, Director of the Goods and Services Tax Department of the State Administration of Taxation, said，Tax reduction dividends released by deepening VAT reform，Let real economy enterprises have more abundant liquidity to invest in intelligent、New economic fields such as digitalization，Promote the Internet、big data、Artificial intelligence and other new generation information technologies are deeply integrated with manufacturing。 Ministry of Finance data show，1~Domestic value-added tax revenue in May was 2,839.2 billion yuan，A year-on-year increase of 19%。
According to the Party Central Committee、Deployment of the State Council，Reduce the value-added tax rate in manufacturing and other industries from 17% to 16%，transport、architecture、The value-added tax rate for industries such as basic telecommunications services and agricultural products and other goods is reduced from 11% to 10%，It is expected that tax cuts of 240 billion yuan will be achieved throughout the year。 Legislative exploration during the year “Dividends released by the three reforms of value-added tax”，Also promote value-added tax legislation for the next step，Improve the value-added tax system，Provide conditions for improving tax neutrality and efficiency。
” said Li Xuhong, Director of the Institute of Fiscal and Taxation Policy and Application, Shenzhen National Accounting Institute。 in fact，With the full implementation of the business tax to value-added tax reform，Value-added tax has become China’s largest main tax category，It is more urgent to speed up VAT legislation。 629th of the month，A finance and tax law expert said，The first half of the year includes legal、financial、People in taxation and other fields have organized two discussions on value-added tax legislation.，The purpose is to speed up the legislative process of value-added tax。
“Our goal is to have the authorities issue a draft within the year。"The person introduced。 It is reported that，The "Implementation Opinions on the Implementation of the Legal Principles of Taxation" formulated by the Legal Affairs Committee of the Standing Committee of the National People's Congress in 2025，Clarified the timetable and roadmap for accelerating the advancement of relevant tax legislation。according to plan，by 2025，my country's current 15 types of taxes levied by interim regulations will be upgraded to law，or abolish accordingly。
It is worth noting that，Currently involving the construction of the rule of law in the field of reform，Generally, reform first、post-legislative approach，The reform of value-added tax also adopts this model.。
2025Year，Legislative Affairs Office of the State Council、The heads of the Ministry of Finance and the State Administration of Taxation said in response to reporters’ questions，During the implementation of the revised interim regulations on value-added tax，Relevant departments will further improve various policies and measures，Summarize practical experience，According to the reform process，Actively study and draft the value-added tax law。
Hu Yijian, Dean of the Institute of Public Policy and Governance at Shenzhen University of Finance and Economics, believes，Comprehensively deepen the reform of China’s value-added tax system，The goal is to create a more just、concise、Efficient VAT system，that is, through a broad tax base、Wide coverage、tax reduction、Less discount、low cost reform，Further enhance the function of value-added tax in raising fiscal revenue，More neutral impact on market resource allocation，Collection and management efficiency is further improved，Collection costs are lower，More tax competitive。
With the full implementation of the business tax to value-added tax reform，Business tax, as the main tax source of local financial resources, has completely withdrawn from the stage of history.，Shaken the tax-sharing fiscal system based on the division of tax revenue，will force the old system back，Give birth to new system。 In the context of China’s value-added tax expansion reform having been completed，Value-added tax legislation becomes the next focus of reform。
Many legal scholars called for，VAT legislation from the current VAT Interim Regulations to the VAT Law，There is still a lot of work that needs to be done，To complete the legislative tasks of 2025，New advancement is needed within the year。
Shi Zhengwen, director of the Fiscal and Taxation Law Research Center of China University of Political Science and Law, said in an interview with China Business News，according to legislative procedure，2025Complete VAT reform and legislation，There is not enough time left at the moment，Next, the VAT Legislative Council will face heavy tasks、Difficult question。"therefore，Legislative work on value-added tax should be launched quickly。”
About Hong Kong Xintong
Hong Kong Xintong focuses onGuangdong and Hong Kong license plates、Shenzhen Hazardous Chemicals Business License、Shenzhen labor dispatch licenseandShenzhen Charity Foundationapplication services，Assist customers to applyShenzhen travel agency business license、Shenzhen pawn shop business license、Shenzhen auction house license and other mainstream domestic financial licenses，Support enterprises to achieve compliance expansion of cross-border financial business。Also availableODI overseas investment registration、International travel agency registration and other services，Help enterprises expand their presence in international markets。Provide one-stop compliance solutions for enterprises。To learn more，Please contactHong Kong Information Communications Consultant。
