On the basis of the current low tax rate of 17% and 13% for general goods and services, two low tax rates of 1 1% and 6% are added.
Reform of value-added tax in four major industries:
1, construction industry: general taxpayers levy 1 1% value-added tax; Old projects and small-scale taxpayers can choose the simple tax method to collect 3% value-added tax.
2. Real estate industry: real estate development enterprises levy 1 1% value-added tax; If an individual purchases a house for less than 2 years and sells it to the outside world, he shall pay VAT in full at the tax rate of 5%; Individuals who purchase houses for more than 2 years (including 2 years) for external sales shall be exempted from VAT.
3. Life service industry: 6%. Tax-free items: foster care and education services provided by nurseries and kindergartens, and pension services provided by pension institutions, etc.
4. Financial industry: 6%. Tax-free items: interest income from small loans for farmers in financial institutions, national student loans, national debt and local government bonds, loans from the People's Bank of China to financial institutions, etc.
According to the provisions of Caishui Document [20 17] No.37 "Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Relevant Policies of Degenerate VAT Rate", the structure of degenerate VAT rate will be cancelled and the VAT rate of 1 3% will be cancelled as of July 2017.
Article 2 of the Provisional Regulations on Value-added Tax stipulates that the value-added tax rate:
(1) Taxpayers selling or importing goods, except as provided in Items (2) and (3) of this Article, shall pay a tax rate of 17%.
(2) The taxpayer sells or imports the following goods at the tax rate of 13%:
1. Grain, edible vegetable oil and fresh milk;
Tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, biogas and coal products for residents;
3. Books, newspapers and magazines;
4. Feeds, fertilizers, pesticides, agricultural machinery and plastic films;
5. Other goods specified by the State Council.
(3) taxpayers export goods at zero tax rate; However, unless otherwise stipulated by the State Council.
(4) Taxpayers provide processing, repair and replacement services (hereinafter referred to as taxable services), and the tax rate is 17%.
The adjustment of tax rate is decided by the State Council.