ARTICLE · 09 FEBRUARY 2012

China Tax Regulation Update: December 2011 And January 2012

CMS Cameron McKenna Nabarro Olswang

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A number of tax regulations have been updated in China due to changes in government policy.

ChinaTax

Charlie Sun

A number of tax regulations have been updated in China due to changes in government policy.

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December 2011 & January 2012

Circular Number	Issuance Date	Effective Date	Topic	What is new?
Circular Caishui [2011] No.110 Circular Caishui [2011] No.111	2011-11-16	2012-01-01	Pilot VAT reform in Shanghai	Starting from 1 January 2012, certain services ("Taxable Services") provided by taxpayers in Shanghai or provided by foreign enterprises to tax payers in Shanghai are subject to Value Added Tax ("VAT") and not the previous Business Tax. This is generally viewed as a tax-cutting reform due to the Input-Output credit system available in the VAT regime. The reform is expected to be extended to all over China in the future. For more details on this topic, please refer to our recent newsletter titled "China moving forward to expand VAT scope with

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