Issued by the State Council camp to increase income distribution transition

Chinese Government Web on April 30 issued by the State Council on printing and distributing the full pilot projects to open camp increased adjusted Central and local government sales tax revenue Division issued the notice on the transition programme. Said programme implemented from May 1, tentative 2-3 year of the transition period. 2014 Central return approved for the base and turned over to the base, all enterprises to pay value added tax are set out in the Central and local shared scope. Central share 50% of sales tax, local tax share of VAT paid by 50%.

State Council on printing and distributing the full push adjustment after pilot projects to business increased sales tax revenues are divided into Central and local transition notice

(2016), 26th

All provinces, autonomous regions and municipalities, ministries and departments under the:

Will now pilot projects to the comprehensive opened the camp increased adjusted Central and local tax revenues are divided into the transitional programme issued to you, please follow carefully.

The State Council

The April 29, 2016

Full push adjustment after pilot projects to business increased sales tax revenues are divided into Central and local transition programme

Pilot projects to full swing camp increase will be implemented on May 1, 2016. According to party of 18 session plenary session on "keep existing Central and place financial pattern General stable, combined tax reform, consider tax property, further straighten out central and place income divided" of requirements, while consider to tax reform not completely in place, advance Central and place powers and spending responsibility divided reform also has a process, State decided, developed full pushed camp modified increased pilot Hou adjustment Central and place VAT income divided of transition programme.

One, basic principles

(A) maintain current financial pattern does not change. Balancing local financial resources, does not affect the smooth operation of local financial, and maintain the current Central and local financial resources "55".

(B) focus on the mobilization of local enthusiasm. Appropriate local tax share of VAT paid in proportion to arouse the enthusiasm of local economic development and cultivate sources to ease current economic downward pressure.

(C) take into account the relationship between Eastern, Central and Western interests. By 2014 as the base, Central from local incomes through tax rebates on the way to the place, ensure that the existing financial resources intact. Adjusted incremental distribution of income to the Central and Western regions, focusing on efforts to increase support for underdeveloped areas, promoting the Equalization of basic public services.

Meanwhile, in accelerating the construction of local tax system, promoting Central and local powers and expenditure responsibilities in the reform process, completes the transition programme and further convergence of the fiscal and taxation system.

Second, main content

(A) the approved Central return for 2014 as the base and turned over to the base.

(B) all enterprises to pay value added tax are set out in the Central and local shared scope.

(C) the Central share of VAT 50%. Zuckerberg dialog MA first man machine war he

(D) local tax share of VAT paid by 50%.

(E) Central incomes through tax rebates on the way to the place to ensure that local resources unchanged.

(Vi) income of the centralized increases through the balance transfer payment to local, mainly used to increase its support to the Central and Western regions.

Third, implementation and transition period

The programme implemented in step with pilot projects to fully opened the camps increased, from May 1, 2016. Tentative 2-3 year of the transition period, when according to the Central and local powers and expenditure responsibilities and construction of local tax system reform progress, whether appropriate adjustments.