The Third Session of the 11th Central Committee of the CPC held 35 years ago inaugurated China's reform and opening up. After more than 30 years, the Chinese economy now faces slower and sluggish growth. [Offshore Company Incorporation] The Third Session of the 18th Central Committee of the CPC will further China's reform and opening up in light of current economic circumstances.

When the new cabinet was unveiled in March, it announced three major targets for economic reform in taxation, financial and market systems. Among them, taxation reform is considered top priority.

Wang Jun, head of the State Administration of Taxation, has repeatedly said reforming China's tax laws are vital if China is going to successfully complete transition from a dependence on investment and exports to a more consumer-oriented economy. The change from a business to a value-added tax, a major measure of the reform, began across China on August 1. Shanghai was the initial testing ground for the tax on January 1, 2012, before it was extended to another nine provinces and municipalities, including Beijing and Jiangsu and Anhui provinces.

Tax plays its part[HongKong Richful  - Hong Kong Company Formation, Offshore Company Incorporation]

China's auditing authority is now reviewing local government debts nationwide, a move by the Central Government to determine the financial status of local governments in preparation for further tax reforms.

During 35 years of reform and opening up, tax reform has contributed to China's economic development. At the end of the 1970s, when China first adopted its policy of reform and opening up, the Central Government began a system whereby it would delegate taxation powers to lower levels of government and receive little tax income itself, according to Gao Peiyong, Director of the National Academy of Economic Strategy at the Chinese Academy of Social Sciences.

In the early 1990s, China's reform and opening up entered a new stage, and with it came a revision of the tax code. There were three major changes in China's tax reforms of 1993. First, dividing spending from central and local budgets. Spending for national defense, diplomacy and armed forces, national level infrastructure projects, and the repayment [HK Corporate Registration]of domestic and foreign debt to be paid for by the Central Government.