China Tax Newsletter

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June 2025 - High-income individuals abroad

This article examines the current landscape of overseas individual income tax enforcement by national tax authorities, and explores effective compliance strategies for individuals potentially subject to cross-border taxation within legal and regulatory frameworks.

New "VAT Law of the PRC"

On 25 December 2024, the Standing Committee of PRC National People’s Congress passed the PRC Law on VAT (“the Law”). For the first time, VAT legislation is being enacted in the form of Law in China since its formal introduction in 1994. The new VAT Law shall be effective from 1 December 2026. The Law merely provides a high-level framework. As such, it is widely expected that PRC authorities...

New IIT Laws for the “Six-Year" Rule

The new IIT laws replaces the old "five-year" lookback period rule with a "six-year" rule to adapt to the new definition of resident that uses the 183-day test.

January 2022 - China Tax News

On 31 December 2021, the Ministry of Finance (“MOF”) and State Taxation Administration (“STA”) released two announcements (i.e., MOF STA Announcement [2021] No.42 and No.43) officially extending some preferential Individual Income Tax (“IIT”) policies

“聚焦粤港澳大湾区政策”主题系列之二 —— 珠海横琴：横琴粤澳深度合作区建设

粤港澳大湾区由香港、澳门2个特别行政区和广东省珠三角9市（广州、深圳、珠海、佛山、中山、东莞、肇庆、江门、惠州）组成，涉及到三个关税区、三种货币、三种法律制度。粤港澳三地，是我国开放程度最高、经济活力最强的区域之一。

June 2017 - Common Reporting Standards – AEOI Standard/CRS in China

The OECD common reporting standard (CRS) has applied in China as from 1 July, 2017. The final rules (“Due Diligence Procedures on Financial Account Information in Tax Matters for Nonresidents”) were issued by the State Administration of Taxation (SAT), the Ministry of Finance (MOF) and financial regulatory bodies on 9 May, 2017 as Announcement (2017) No 14 ( hereinafter referred to as the “Announcement 14”). The Announcement addresses financial institution (FI) reporting, what are to be reported, the so-called reportable financial accounts and due diligence procedures to be carried out by the FIs.

May 2017 - SAT INTEGRATING BEPS ACTION PLANS 8 TO 10 AND ACTION PLAN 14

On 17 March 2017, the State Administration of Taxation (“SAT”) released its long-awaited Bulletin on Special Tax Investigations, Adjustments and Mutual Agreement Procedures (“Bulletin 6”), thus largely completing the revision of the transfer pricing specific clauses of the old Circular 2 concerning Special Tax Adjustments.

July 2016 - SAT issued new rules on reporting of related party transactions and contemporaneous documentation

On 29 June 2016, the State Administration of Taxation (SAT) issued the Public Notice Regarding Refining the Reporting of Related Party Transactions and Administration of Transfer Pricing Documentation (SAT Public Notice [2016] No. 42, hereinafter referred to as “Bulletin 42”). Bulletin 42 provides new transfer pricing compliance requirements in China, including Annual Reporting Forms for Related Party Transaction (“RPT Forms”), Country- by-Country Reporting (“CbCR”), and Transfer Pricing Documentation (“TPD”).

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Partner, Tax Advisory Services Peter Law