From May 65438, 2065 438 to May/Kloc-0, 2065438, China fully implemented the pilot program of camp reform, and the scope of the pilot program was extended to the construction industry, real estate industry, financial industry and life service industry, and the value-added tax contained in all newly-added real estate of enterprises was included in the deduction range to ensure that the tax burden of all industries was reduced but not increased. This means that China's tax reform has taken a crucial step, and the foundation of state governance will be laid more firmly and rammed more firmly.

Simply put, the biggest difference between value-added tax and business tax is that value-added tax can be deducted and business tax cannot be deducted. The pilot program of the reform of the camp has not only realized the full coverage of the value-added tax on goods and services, but also included the value-added tax contained in the newly-added real estate of all enterprises in the deduction range for the first time, basically completing the transformation from production-oriented value-added tax to consumption-oriented value-added tax.

Both movable property and immovable property, raw materials and semi-finished products can be deducted as input tax, which is of great significance for reducing corporate tax burden and creating a fair competitive market environment.

Extended data

Before the reform of the camp, China mainly levied value-added tax on goods and business tax on services. Accordingly, the manufacturing industry implements value-added tax and the service industry implements business tax. This brings a big problem, that is, the chain of value-added tax is "broken".

For example, enterprises in manufacturing industry buy services and enterprises in service industry buy goods, so they can't deduct taxes, and the economic activities between enterprises in service industry can't offset each other, resulting in repeated taxation in service industry.

People's Daily Online-From May 1 day, the pilot tax reform will take a key step.