China’s State Administration of Taxation issued guidance concerning value added tax (VAT) issues of finance leasing activities. The guidance was issued in light of the transition from the business tax regime to the VAT system in China.
The guidance is known in English as Announcement No.  90, “Announcement on relevant VAT issues in relation to the transition of business tax to VAT.” Specifically, articles 3 and 4 of Announcement 90 concern the following VAT issues of finance leasing arrangements:
The effective date for this guidance is 1 February 2016. Unresolved matters will be subject to this new guidance after it takes effect.
Read a January 2016 report prepared by the KPMG member firm in China: New Tax Regulation Clarifying VAT Treatments on Finance Leasing Business Activities
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