Business tax is a tax levied on the turnover of units and individuals who provide taxable services, transfer intangible assets or sell real estate in China. Business tax is one of the main taxes in the circulating tax system. On 20th 1 1 year1month17th, the Ministry of Finance and State Taxation Administration of The People's Republic of China officially announced the pilot scheme of changing business tax to value-added tax.
In May of 20 15, the reform plan for the last three industries, Jian 'an Real Estate, Finance and Insurance, and Life Service, will be launched, and the possibility of implementation by industry will not be ruled out. Among them, the value-added tax rate of Jian 'an real estate is tentatively set at 1 1%, and the financial insurance and life service industry is 6%. This means that after entering the second half of 20 15, China will bid farewell to business tax completely.