Core Viewpoint - The rumors regarding potential tax rate adjustments for the financial and internet value-added services sectors, particularly in relation to gaming, are unfounded and have caused notable stock price fluctuations for companies like Tencent [1] Tax Rate Comparison - The speculation suggested that the tax burden for gaming companies could rise from 6% to align with the 32% rate of the liquor industry, which is inaccurate [1] - Current tax regulations for gaming companies primarily involve value-added tax (VAT), while the liquor industry is subject to consumption tax, making direct comparisons invalid [1] VAT Regulations - The VAT law effective from January 1, 2026, stipulates that the tax rate for the sale of services and intangible assets is set at 6% [1] - Claims of a 32% tax rate are dismissed as baseless, with the VAT rates legally fixed at 6%, 9%, and 13%, and adjustments are not easily made unless the nature of the goods changes from services to goods [1] Future Tax Rate Adjustments - Adjustments of the VAT rate from 6% to 9% or 13% are considered unlikely due to established regulations and the nature of the industry's primary costs, which are largely labor-related and do not allow for significant input tax credits [1] Market Reactions - The recent volatility in the stock market, particularly in Hong Kong, has been exacerbated by misinterpretations of tax adjustments for telecom operators, leading to panic selling and manipulation of stock prices by certain institutions [1]

Core Viewpoint - Recent rumors regarding the potential increase of VAT rates for the gaming and financial industries have been deemed unsubstantiated by experts and industry insiders [1][2]. VAT Policy Clarification - The new VAT law and its implementation regulations will take effect on January 1, 2026, ensuring continuity in the tax system [1][2]. - Recent announcements from the financial and tax departments aim to better implement the VAT law and clarify applicable tax rates for industries such as gaming and finance, enhancing policy certainty and stability [1][2]. Misleading Rumors - Claims that the gaming industry's VAT rate could rise from 6% to 32% are inaccurate, as the current VAT law specifies a maximum rate of only 13%, making the 32% rate non-existent [1][2].