VAT Collection: Assets Restructuring - 关于纳税人资产重组有关增值税政策问题的批复
Released on October 21, 2009, and effective as of the same date
The State Administration of Taxation (SAT) on October 21, 2009, issued a Reply regarding the VAT collection policy during the company's assets restructuring, which mainly states:
· While reserving the entity of the listed company, where the taxpayer transfers its assets, debts or related right and obligation to its holding company during the assets restructuring, this can't be treated as an act of the general transferring of the enterprise's properties and taxable goods incurred during the assets restructuring shall be subject to VAT imposition;
· Where the above mentioned holding company makes re-investments into another company by such transferred goods, this act shall also be subject to VAT imposition; and
· The VAT collection of fixed assets by the taxpayer during the assets restructuring shall be implemented according to related circulars.