Healthier Development from the Policy on Changing Business Tax into Added-value Tax

In order to implement the relevant policies and spirits of “Business Tax Changed into Added-value Tax, overcome effectively the malpractice of double tax levying and further improve the enterprise operation and management level, the company has recently organized related departments and employees from the department of finance, statistics, auditing, marketing, business administration and general administration to participate in the special training session on changing business tax into added-value tax in the industry of building decoration hosted by Beijing Building Decoration Association. Li Jiefeng, chairman of China Decoration Co., Ltd. and Beijing Building Decoration Association attended the training and made a opening mobilization speech. Li Jiyou, the special guest, the deputy chairman of Beijing Certified Tax Agents Association, famous Chinese tax planning expert and specially-appointed professor with Tsinghua University and Peking University.

In the opening speech, Chairman Li Jiefeng said all the employees should value this training, disseminate the training contents and learn about the importance of changing business tax into added-value tax. From May 1st, the business tax will be taken place by added-value tax and the pilot areas will be expanded to construction, real estate and finance industry etc. The time is so pressing, so how can we understand correctly and execute effectively the policies? We need to keep improving our management. Chairman Li pointed out that for the construction industry, the business tax changed into added-value tax doesn’t only involve the finance work and the whole industry will be affected. Therefore, the association should strengthen training on the policy changing business tax into added-value tax. Meanwhile, training sessions on informatization, law and operation should be conducted to provide better services for the construction industry.

In the training, Professor Li Jiyou lectured on many aspects including the impact on construction and real estate industry by the policy changing business tax into added-value tax, countermeasures, 6 changes brought by the new policy, taxable scope and rate, simple tax calculation method and general tax calculation method etc. and analyzed the related knowledge points in case study, which makes it easier to be understood. During the recess, many students consulted Professor Li about the policy on changing business tax into added-value tax. Over a total of 400 people participated in the training including senior executives including construction, decoration and real estate development, tax-related managers such as financial director, finance manager, tax director and tax manager.

The policy on changing business tax into added-value tax is an important policy made the State Council to continue deepening opening up and reform at the critical moment of Chinese economic transformation and upgrade as well as a policy of strategic importance with many benefits. Since the reform of business tax into added-value tax was launched in Shanghai with trial in January 1st 2012 and the trial areas are gradually expanded, the policies have been executed in a few industries all over the country. It has great significance for constantly optimizing industrial structures, reducing tax burden for enterprises and support macro economic development, but it also pose rigorous challenges for the enterprises to avoid business operation risks to the maximum extent.

Through the training, the company employees have a systematic understanding of the policy on changing business tax into added-value tax. Next, the company will organize learning sessions and study how to implement the policy thoroughly and lay a solid foundation for the future tax handling work after the policy on changing business tax into added-value tax is carried out.