VAT rate
Based on the current VAT rate of 17% for general goods and services and the lower rate of 13%, two new lower rates of 11% and 6% have been added.
The implementation of the new four major industries:
Construction: general taxpayers levy 11 percent VAT; old projects and small-scale taxpayers can choose the simple tax method to levy 3 percent VAT.
Real estate industry: real estate development enterprises levy 11% VAT; individuals selling housing purchased less than 2 years ago to the outside world will pay full VAT at 5%; individuals selling housing purchased more than 2 years ago (including 2 years) to the outside world will be exempted from VAT.
Life service industry: 6%. Tax-exempt items: childcare and education services provided by nurseries and kindergartens, and elderly care services provided by nursing institutions.
Finance: 6%. Tax-exempted items: interest income from small loans to farmers by financial institutions, national student loans, national and local government bonds, and loans to financial institutions by the People's Bank of China.