Tax aspects of economic reforms in China

Abstract

The article deals with directions and effects of the fiscal and tax reforms in the People’s Republic of China (PRC) under the global financial and economic crisis of 2007-2009. It is shown that the real tax burden in China is below the world average rates. The analysis of the main changes in China’s tax policy for the period 2013 -2014 suggests that the country continues to reform indirect taxation - there is a complete replacement of the turnover tax by a value added tax. The emphasis in the corporate income taxation is made on the concessions for high-tech and small low-profit
business.