China will continue to carry out reforms to replace the business tax with a value-added tax (VAT) to cut companies' costs in 2017, the State Administration of Taxation (SAT) said on Tuesday.
Tax reductions will further expand next year for three reasons: the carryover of unused tax breaks in four sectors [construction, property, financial and life services]; the carryover of unused tax cuts in fixed-assets purchases made in 2016, as well as increased tax deductions after companies get used to the new tax system, Wang Jun, head of the SAT, said at press briefing in Beijing on Tuesday,.
"We thoroughly understand that only by caring for and helping companies, can we persistently expand the country's sources for tax and fiscal income," Wang told the briefing, according to a statement on the agency's website.
In the first 11 months of the year, tax breaks for companies through the VAT reforms reached 423.4 billion yuan ($60.9 billion).
