ey-global-tax-policy-outlook-for-2015

China
2.3 Tax policy outlook for 2015 — summary
Corporate income tax burden*
Lower No change Higher
Personal income tax burden
Lower No change Higher
VAT/GST/sales tax burden**
X
X
Lower No change Higher
X
* The overall CIT burden is expected to be higher as the SAT is targeting cross-border base erosion transactions and increasing its
transfer pricing audit activity.
** The overall indirect tax burden generally would likely be lowered, because China has been converging business tax (BT) to VAT,
which allows an input tax credit that was not available under the BT system.
16 The VAT reform is expected to include more industries, such as real estate,
16
62 | The outlook for global tax policy in 2015