Dec 2008 - Business Tax Regulations

Fudamental Changes on Taxing Principles under the Revised Business Tax Provisional Regulations

The Ministry of Finance and the State Administration of Taxation issued the revised “Implementation Rules for Provisional Business Tax Regulations” on 15 December 2008 for the amended Business Tax Regulations which were issued in November 2008. The revised Implementation Rules have made some fundamental changes of the taxing principles of the business tax (“BT”) regulations which we shall comment in the later paragraphs. Please note that new Implementation Rules will be effective from 1 January 2009.