The State Administration of Taxation released the Announcement on Issues Concerning Value-Added Tax Relevant to Taxpayers’ Assets Restructuring (the “VAT Announcement”) on February 18, 2011. The effective date of the Announcement is March 1, 2011.
The brief VAT Announcement mainly focuses on value-added tax levied on assets restructurings. The VAT Announcement provides that, where a taxpayer transfers all or part of its physical assets, together with debtclaims, debts and labor force related thereto, to other entities or individuals via combination, division, sale or exchange in the course of assets restructuring, such transfer, as well as the transferred goods involved therein, shall not be subject to value-added tax.
The VAT Announcement’s coming into force nullifies three previously issued administrative regulations concerning the same issue.
- State Administration of Taxation’s Announcement on Issues concerning Value-Added Tax relevant toTaxpayers’ Assets Restructuring
- Issuing Authority: the State Administration of Taxation
- Date of Issuance: February 18, 2011 / Effective Date: March 1, 2011