In recent years, China has implemented a series of supportive tax policies and streamlined tax administration measures to foster the stable growth of foreign trade and attract foreign investment.

What are the latest tax policies for foreign trade and investment?

On Jan 15, the State Taxation Administration published an updated edition of the Tax Policy Guidelines for Foreign Trade and Investment. 

The update aims to help taxpayers understand and use the tax policies better, creating a favorable tax environment to facilitate the development of both foreign trade and investment in China.

What does the new version of the tax policy include?

The latest guideline has two main sections: policies for stabilizing foreign trade and policies for encouraging foreign investment, with a total of 51 specific items. 

Of these, 19 items are dedicated to tax policies related to foreign trade. These include regulations on the taxation of exported goods and services, value-added tax policies for cross-border taxable activities, tax policies for emerging formats in foreign trade, and facilitation measures for export tax refunds or exemptions. 

The remaining 32 items are tax policies related to foreign investment, with measures aimed at encouraging and supporting foreign investment.

Click here to download the guideline in Chinese.

Sources: STA General Office, "scofcom" WeChat account