China approves value-added tax law, taking effect in 2026

Move follows last month's new tax incentives on home and land transactions

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China's top legislature, the National People's Congress Standing Committee passed a value-added tax law on Dec. 25. (Photo by Mizuho Miyazaki)

BEIJING (Reuters) -- China approved a value-added tax law on Wednesday to take effect on Jan. 1, 2026, according to the official Xinhua news agency, bringing into one document previous regulations that have included exemptions from the tax.

VAT, the largest tax category in China, accounted for around 38% of national tax revenue in 2023, official data show.

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