营业税改征增值税试点方案的进一步扩围(外文翻译)(编辑修改稿)

营业税改征增值税试点方案的进一步扩围(外文翻译)(编辑修改稿)内容摘要：

regions talk to their locallevel authorities on the effective date of the rollout in their region. The first and foremost starting point for these Pilot Enterprises is to study the impact to them under the Pilot Program. Where China39。 s indirect tax reform stands Reforming the existing indirect tax system in China is, without doubt, a plex and challenging process confronting the Chinese tax authorities. While we witnessed some changes to the indirect tax rules in early 2020, such changes were ad hoc in nature and not necessarily designed to radically overhaul or otherwise rectify some of the perceived inefficiencies in the existing indirect tax system. Earlier this year, indirect tax reform was incorporated into the State39。 s 12th Fiveyear Plan. On 8 July 2020, the Minister of Finance made a speech2 on this topic. Though neither of this information discloses too much detail, it helps reveal the fact that revising the China indirect tax system remains on the radar of the Chinese government. While it is widely recognised that the uping reforms will mainly seek to merge the existing value added tax and business tax systems, the question still remains as to when the reforms will take place, what will they precisely enpass and which industries will be most affected and how. This Issue of News Flash will show a status report and share our observations. Impetus for the reform While there is evidence to strongly suggest the existing indirect tax system in China is an effective means of raising tax revenue,it nevertheless poses a variety of difficulties for taxpayer. For instance, it is an inevitable feature of the current system that the indirect tax burden ultimately imposed on taxpayers,both double taxation and administrative,vary considerably from induatry,depending on whether they fall within scope of VAT,BT or both. 8 There can also be,at times, significant levels of ambiguity as to whether a particular type of transactions will be within the ambit of VAT,BT or ,this is open for interpretation and creates a level of unpredictability and uncertainty under the existing regime. Last but not least,as China continues to gradually open its borders to the rest of the world,we are witnessing signs of an evolving globalised economy which,in turn,brings about the introduction of plex and sophisticated transsactions,often involving multiple the question arises as to whether the existing indirect tax system in China is adequately equipped to deal with such types of transactions in both a tax efficient and effective manner,while at the same time keeping administrative and pliance costs at an acceptable level for taxpayers alike. With this in mind,itappears the Chinese tax authorities have been listening to the calls of taxpayer and tax practitioners and have begun to recognise the importance of reforming the current indirect tax system. It is our understanding that the Ministry of Finance is taking the lead with respect to the reforms,working closely together with the State Administration of Taxation on the implementation ,in,turn,will municate with the National People39。 s Congress,with final approval to e from State Council. What are the proposed reforms likely to entail,how and when will they be introduced? The captioned questions have been subject to ongoing debate and discussion and have been,at least to date,difficult to determine with any great degree of certainty. It has been a usual practice for the Chinese fiscal authorities to implement some pilot programs to essentially serve as a test run for some wideimpact new policies before they are formally far as the indirect tax reform is concerned,it was firstly envisioned that a pilot program would be introduced for the production service industries,which is a jargon appearing in the official information but yet to be clearly has indicated this to include transportation,construction and telemunication understand that thre different models were originally considered,namely by industry nationwide,by industry by location and different industry different location. It is interesting to note that while no other local governments have demonstrated a strong interest or willingness to participate in the pilot program,ShangHai has proactively put itself tial run is expected to apply on various industries in Shanghai with a few to be specifically ,one more model is then being added for ,specific details of the Shanghai pilot program,such as which industries are to be included or ercluded,are still yet to be wise,it is generally reported that the。