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

China
2.4 Tax policy outlook for 2015 — detail
One belt, one route, one region
• China has taken the initiative in launching the new
Silk Road for Asia to boost economic, commercial and
industrial cooperation and build connectivity among Asian
tax supporting policies are expected to be released in 2015.
Resource tax reform
• Similar to the market-based resource tax on coal that will
scheduled for metal ores, non-metal ores and water in the
near future. 17 In 2015, we may also see further initiatives
around “green” tax reform that may penalize carbon
polluters as well as promote clean industries.
Indirect transfer rules (capital gains tax)
•
indirect share transfers) is being drafted and is subject to the
SAT’s internal review procedures.
Tax Collection and Administration Law (redrafted)
• The Tax Collection and Administration Law is being revised
and could be released in 2015, which might contain certain
provisions to accommodate China’s latest developments on
tax anti-avoidance and commitments to BEPS.
Property tax
• Property tax (real estate tax) is calculated either based on
the residual value of the property or on the rental income
from the property. The respective tax rate is 1.2% (on
residual value) and 12% (on rental income).
Taxes on wages and employment
2.5 Fiscal stimulus in 2015
2.6 Political landscape
• There were no changes to the political landscape in 2014.
• The fourth plenary session 18 of the 18th Communist Party
communique was released after its closing, which focused on
“comprehensively promoting the rule of law” in China.
2.7 Current tax policy and tax administration
leaders
•
laws and regulations for income tax, turnover tax, customs
duty and resource tax, supported by circulars and regulations
for different types of taxes. State organizations that have the
authority to formulate tax regulations include the National
People’s Congress and its Standing Committee, the State
Administration of Customs.
• The SAT is a ministry-level department directly under the
State Council. The SAT oversees 12 functional departments
and the Auditing Bureau. 19
•
level role) of the SAT since March 2013. 20
•
is less likely that the new IIT scheme will be promulgated in
2015, considering the large coverage of IIT taxpayers and
related tax administration complications, it is certainly in the
pipeline as part of China’s overall tax reform agenda.
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The outlook for global tax policy in 2015 |
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