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Revision of CPA Law Receives Warm Response

While the proposed amendments have been said to be largely in line with international practice, the lack of mention of sole practitioner has the consequence of actually blocking the form to be adopted in China. Other industry insiders expressed their disappointment that taxation-related services have not been clearly stated to be included in the service range of CPA.

 

Banks Ordered to Raise Loan Loss Reserves

The Ministry of Finance (MOF) ordered financial institutions to keep 1.5 percent of their gross loans as general provisions. Financial institutions should use either internal model method or standard method to quantitatively evaluate risk status of their holding of risk assets based on their specific circumstances.

 

SAT Issues Tax Refund Approach for VAT Reform Pilot Areas

The State Administration of Taxation (SAT) has clarified that pilot-areas-based general taxpayers of VAT providing services which have an applicable VAT rate of zero should use tax exemption, offset and refund method and not be allowed to issue VAT invoices.

 

 Note:

“China Accounting News Weekly” is established on August 5, 2005. It selects important accounting news weekly to convenient the people can acknowledge the developments quickly. From its launching, thousands of people read it every week.
In order to promote the development of China accounting industry to English readers, we make this English edition on March 23, 2007. If there are any problems, please contact with qiaobocao@snai.edu.

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