Tax Reform

Wealthy win lion’s share of major tax breaks

President Barack Obama has proposed to cap the rate at which wealthier households can reap savings from itemised deductions at 28 per cent. Photo: Reuters

Wealthier households benefit significantly more than lower earners from big tax breaks such as deductions for mortgage interest and charitable giving, the government said in a new study.

Thursday, 30 May, 2013, 11:06am

Lower taxes across the board are the key to greater domestic consumption

Chinese President Xi Jinping (left) and Premier Li Keqiang. Photo: AFP

Last Thursday's rout on global stock markets, partly triggered by a weak reading for China's purchasing managers' index, has reflected investors' renewed concerns over the state of the mainland economy.

27 May 2013 - 4:48am 2 comments

Companies want Beijing to ease tax burden

Premier Wen Jiabao. Photo: AFP

As the annual session of the National People's Congress and a government reshuffle draw nigh, millions of business executives and wealthy individuals are hoping the new cabinet equates tax reform with tax cuts.

1 Mar 2013 - 5:08am 1 comment

Range of exemptions from investment taxes to end for expats in mainland

China is abolishing tax exemptions for foreign investors. Photo: SCMP

The State Council unveiled sweeping tax reform plans on Tuesday under which three ministries, including the National Development and Reform Commission, proposed 35 measures to make the wealthy pay more and to narrow the income gap between the urban rich and the rural poor.

8 Feb 2013 - 5:02am

Beijing to expand tax reform trial

The mainland will expand a value-added tax (VAT) reform trial next month despite complaints about incomplete preparatory work that has caused businesses to end up paying more taxes in Shanghai.

27 Jul 2012 - 12:00am

VAT pilot programme to roll out to other cities

Beijing is likely to expand a trial reform of value-added tax (VAT) to more cities this year as it seeks to increase tax revenues from the service sector.

25 Jun 2012 - 12:00am

Tax overhaul a headache for some in cargo

A programme to overhaul the mainland tax system for logistics, shipping and other cargo firms by replacing business taxes with a value-added tax has generated mixed views.

Some observers said the pilot implementation of the scheme in Shanghai had already caused confusion and could have been better implemented, while others said there had been little impact so far.

18 Jun 2012 - 12:00am

New deal boosts firms

With the launch of a value-added-tax (VAT) reform pilot programme in Shanghai since the start of this year, multinational corporations with operations in the city can claim input VAT credits for many purchases of fixed assets, goods and services.

19 Apr 2012 - 12:00am

'Tax relief' measure leaves some firms paying more

Mainland authorities have been left red-faced after a reform that was designed to ease tax burdens on service firms ended up levying increased payments.

26 Mar 2012 - 12:00am

Call for 3pc levy on luxury goods in HK

Luxury goods such as Louis Vuitton handbags, Gucci couture or Harry Winston jewellery watches could be taxed as a viable option to widen Hong Kong's narrow tax base.

Indeed, a 3 per cent tax on luxury goods should be introduced, according to a survey earlier this month of 200 Hong Kong-based members of CPA Australia, a global accounting organisation.

31 Jan 2012 - 12:00am

Nation's small traders squeezed dry

Zhang Zhenfeng, who owns a street-side photo-print shop in Beijing, says he has never been happier with business conditions than in the past couple of months.

'I used to pay a monthly tax of some 800 yuan (HK$983). And it was a fixed rate,' he said. 'I had to pay it whether I had business or not. Now I just have to pay around 100 yuan.'

20 Jan 2012 - 12:00am

Paying the price

Some people tied cash to a pear and threw it into the yard of Ai Weiwei's home. Some made planes out of the renminbi notes and 'flew' them into the yard; eight of these planes landed on his lawn. Those who gave money in person queued outside his door.

21 Nov 2011 - 12:00am

VAT changes seen as easing burden on firms

The central government is set to launch a trial value-added tax for businesses next year, which is seen as a clear signal the leadership wants to support growth by easing the tax burden on business.

28 Oct 2011 - 12:00am


Tax sales to beat offshore profit havens

Sally Tang Mei-ching of the League of Social Democrats ('Rich must pay higher tax rate', September 21) is in alignment with US President Barack Obama who wants to increase taxes for America's richest citizens in accordance with a suggestion by billionaire investor Warren Buffett.

26 Sep 2011 - 12:00am

Comprehensive take on China's taxation

Inside Kornerstone Institute's lecture room in Central, the audience sat patiently, waiting for the seminar on China's tax system to start. They were not disappointed when Bert Kwok began his lecture on the 'Principles of Accounting and Taxation in the PRC' and proved to be an engaging speaker.

30 Jul 2011 - 12:00am