On 24 March 2016, China's Ministry of Finance and State Administration of Taxation jointly issued Circular 36/2016, which sets out the value added tax (VAT) rates and rules for the final sectors to be transitioned from business tax (BT) to value added tax (VAT) effective 1 May 2016.
The final sectors include construction services, real estate (sales and leasing), financial services, and consumer services. Financial services include loan services, services subject to a fee, insurance service…