Inheritance Tax
13 Inheritance Tax
TAX SCOPE
This tax is levied on property that has been left behind by the deceased owners, and collected from those who receive the property as an inheritance or a gift. The purpose of the tax is to regulate the wealth distribution of members of society, which is of active social significance and certain financial significance.
BACKGROUND
Implemented by many jurisdictions around the world, this tax was once adopted in China in the 1940s. Inheritance Tax was established in 1950, after the foundation of the People's Republic of China, but it was never levied because conditions were not ripe for implementation.
Following various reforms and China's opening to the outside world, and given its economic and social development, the conditions are becoming ripe for implementation.
FRESH IMPLEMENTATION
In accordance with the objectives outlined by various bodies at various times, as discussed below, China will implement Inheritance Tax at the appropriate time.
- The many suggestions of the Central Communist Party Committee.
- The Reform Program of Industrial and Commercial Tax System Reform, drafted by the State Administration of Taxation (SAT) and approved by the State Council on December 25, 1993.
- The Framework of the Ninth 5-Year Plan and the 2010 Future Objectives of the People's Republic of China for National Economic and Social Development, approved at the Fourth Meeting of the 8th National People's Congress (NPC) on March 17, 1996.
- The Framework of the Tenth 5-Year Plan of the People's Republic of China for National Economic and Social Development, approved at the Fourth Meeting of the 9th NPC on March 15, 2001.