Announcement of the State Administration of Taxation on VAT Issues Concerning the Restructuring of Taxpayers' Assets

 

Announcement of the State Administration of Taxation No. 13 of 2011

 

In accordance with the relevant provisions of the "Interim Regulations of the People's Republic of China on Value-added Tax" and its detailed implementation rules, the VAT issues concerning taxpayer asset restructuring are now announced as follows:

 

In the process of asset reorganization, the taxpayer transfers all or part of the physical assets and the associated creditor's rights, liabilities and labor to other units and individuals through merger, division, sale, replacement, etc. The scope of the tax, which involves the transfer of goods, is not subject to VAT.

 

This announcement will be implemented as of March 1, 2011. If it has not done so before, it shall be implemented in accordance with the provisions of this announcement. Reply of the State Administration of Taxation on the Issue of No VAT on the Transfer of All Property Rights of Enterprises (Guo Shui Han [2002] No. 420), and the Reply of the State Administration of Taxation on Issues Concerning Value-added Tax Policies for Taxpayer Assets Reorganization (State Tax Letter [2009] No. 585) and the “Notice of the State Administration of Taxation on the Issue of Value Added Tax on the Transfer of All Property Rights of China Direct Broadcast Satellite Co., Ltd.” (Guo Shui Han [2010] No. 350) shall be repealed simultaneously.

 

Special announcement.