("ANNOUNCEMENT") (国家税务总局关于调整增值税纳税申报有关事项的公告), ISSUED BY THE SAT

The Announcement modifies and releases VAT filing packages, and establishes that the following documents must be submitted when general taxpayers declare VAT:

  • VAT return for general VAT taxpayers.
  • Details of sales for the current period (as Appendix I).
  • Details of input VAT for the current period (as Appendix II).
  • Details of deductible items related to taxable services (as Appendix III).
  • Details of tax credits (as Appendix IV).
  • Statement of input VAT credit for fixed assets.

The following documents must be submitted when small-scale taxpayers declare VAT:

  • VAT return for small-scale VAT taxpayers.
  • Appendix to VAT return (applicable to small-scale VAT taxpayers who provide taxable services).

Taxpayers should note the changes in VAT filing packages from September 1, 2013, and study their official explanatory notes.

Date of issue: May 7, 2013

Further explanation of Announcement 19 (refer to the Shanghai Office’s May Legal Flash)

On April 19, 2013, the SAT issued Announcement 19 (effective since June 1, 2013) to provide guidance on when crossborder secondments of expatriates by foreign enterprises into China may create a establishment of the non-resident in China, so corporate income tax liabilities may accrue for the non-resident.

The general office of SAT published a further explanation of the Announcement on its website on May 7, 2013:

  • As regards permanent establishments, the explanation emphasized that Announcement 19 is aimed at secondees who will spend more than six months in China.
  • If the dispatching company is in a country that has a double taxation treaty ("DTT") with China, it is necessary to distinguish whether there is a PE situation or not.
  • The overseas remittance regarding the secondment must comply with the policy on the “taxation certificate for outbound payment”, which means the remitter must first apply to the tax bureau for a certificate before remitting the money abroad.
  • The Announcement shall apply to any dispatching situations taking place before the entry into force of the Announcement 19 and the effects of which extends beyond June 1, 2013.