China: VAT treatment of reinsurance arrangements | KPMG | GLOBAL

China: VAT treatment of reinsurance arrangements

China: VAT treatment of reinsurance arrangements

China’s tax authorities issued guidance concerning the value added tax (VAT) treatment of reinsurance arrangements.


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The Ministry of Finance (MOF) and State Administration of Taxation (SAT) on 21 June 2016 jointly issued Circular Caishui [2016] 68 (Circular 68) to set out the VAT treatment of reinsurance arrangements. The circular is the first in a series of what is expected to be guidance to clarify uncertainties with respect to the recently released VAT rules. 

Circular 68 is effective from 1 May 2016, and must be taken into account by reinsurers and insurers in preparing their first VAT returns (due on 27 June 2016).


Read a June 2016 report [PDF 226 KB] prepared by the KPMG member firm in China

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