Policy: Emphasis On Income Retention During The Pilot Period.

< p > to ensure that the pilot scheme of value-added tax on business tax in the pportation industry and some modern service industries has been successfully extended to the whole country since August 1st, the Ministry of finance, the people's Bank of China and the State Administration of Taxation jointly issued a document, which further clarified the budget management issues related to the pilot projects, and emphasized that the income ownership remained unchanged during the pilot period.

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< p > as the two main tax categories in China, value-added tax and business tax are all shared taxes.

Most of the value added tax is enjoyed by the central government, and most of the business tax revenue is enjoyed locally.

After the business tax is changed to VAT, how to adjust the revenue sharing between the central and local governments has always been a hot topic of public concern.

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< p > according to the latest notice issued by the three sector on the budgetary management of the business tax reform VAT pilot scheme, the income attribution remains unchanged during the pilot period, and the business tax revenue originally assigned to the local area is still vested in the VAT after the VAT is changed.

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< p > in addition, according to the policy of levy and refund, the VAT that is approved by the library will be borne by the local finance.

The Levy of value-added tax is not included in the central government's tax refund base for local value-added tax and consumption tax.

During the pilot period, the changes in the fiscal revenue arising from the pilot scheme of VAT sales tax will be shared or shared by the central and local governments in accordance with the relevant provisions of the existing financial system.

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< p > notice has pointed out that the export tax exemption from business tax before the pilot of VAT is still partly borne by the local government. The new export tax rebate for VAT export will be borne by the central government and the local government in proportion to 92.5:7.5 according to the current financial system.

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< p > according to the introduction, the new notice of the three sector will be implemented from August 1, 2013.

The circular issued by the State Administration of Taxation of the Ministry of finance of the people's Bank of China on the budgetary management of the pilot project of business tax to VAT in Shanghai issued in 2011, and the circular issued by the Ministry of finance of the people's Bank of China on the budgetary management of the value-added tax pilot business tax promulgated by the Ministry of Finance and the Ministry of finance's Circular on the export tax rebates for trade in services during the period of pilot business tax reform during the pilot period of value-added tax were abolished at the same time.

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