Recent Important Regulation Highlight

published on 10 January 2024 | reading time approx. 1 minute

Electronic Management of the Electronic Invoicing Process

The Guide for the Electronic Management of the Electronic Invoicing Process was recently published. With the promotion of e-invoices in China, the Guide seeks to further enhance the laws and regulations, streamlining the issuing, receiving, reimbursement, bookkeeping and filing of e-invoices. Additionally it delineates the management responsibilities of departments within the enterprise, such as finance, IT, archives, etc..

Advance Tax Ruling Pilot in Shanghai

Recently, Shanghai tax bureau has issued the Notice of Administrative Measures for Advance Tax Ruling (for Trial Implementation) to further optimize the business environment. In case of uncertainty about the application of tax laws and regulations to a particular complex tax-related case that is forecasted to occur in the future, the company may apply to the tax authorities for an advance tax ruling, which will be advised by the tax authorities in writing accordingly, in accordance with the current tax laws and regulations. However, it is important to note that the following conditions shall be fulfilled for cases applying for Advance Tax Ruling:

if there is a definite project plan or if it will occur within two years;
not stipulated in the current tax laws and regulations;
is legally compliant and has a reasonable business purpose.

Annual Report: Advance Pricing Arrangement 2022 in China

In December 2023, the State Administration of Taxation ("SAT") published the China Advance Pricing Arrangement Annual Report (2022). The report shows that China has signed a cumulative total of 144 unilateral APAs and 116 bilateral APAs as of 31 December 2022. In 2022, China signed 19 unilateral APAs and 15 bilateral APAs, showing an increasing trend.

APAs are a mechanism that allows companies and tax authorities to agree on the tax treatment of certain transactions in advance.