The senior partner of M&T law firm Wu Libin was interviewed by Accounting Messenger over the details of the policy. Mr. Wu said enterprises will beneficial from business tax to value-added tax policy, because the involved eras expanded range construction industry to real estate industry which will lead to a lower tax burden.
In Wu’s opinion, the full implementation of the tax reform will be beneficial for enterprises in following aspects. First, the full-scale operation of the policy has resulted in the full coverage of goods and service by VAT, strongly supporting for the service industry development and manufacturing transformation. Second, taking real estate into the deduction range is conductive to expand business investment and enhance business vitality. Third, further reducing tax burden of enterprises, which has laid a solid foundation for high-speed growth of economy. Forth, creating a fair and neutral environment.
Thus, Mr. Wu suggested construction enterprises strengthening the management of the company, paying attention to the custody and collection of the corresponding value-added tax deduction certificate.