Recent Important Regulation Highlight

Import and export tax policies for the Shenzhen Park of the Hetao Shenzhen

Recently, in order to support the development of the Hetao Shenzhen–Hong Kong Science and Technology Innovation Cooperation Zone, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation (SAT) jointly issued the Notice on Relevant Tax Policies for the Import and Export of Goods in the Shenzhen Park of the Hetao Shenzhen–Hong Kong Science and Technology Innovation Cooperation Zone. The Notice clarifies that entities recognized by the competent authorities and meeting the relevant requirements (including enterprises registered within the customs supervision area with independent legal person status) are exempt from import duties, import VAT, and consumption tax on imported self-use scientific research goods.

The Hetao Shenzhen–Hong Kong Science and Technology Innovation Cooperation Zone is located in the Guangdong–Hong Kong–Macao Greater Bay Area. It consists of the Shenzhen Park and the Hong Kong Park and is situated in the cross-border area between the southern part of Futian District in Shenzhen and the northern part of Hong Kong.

Shanghai introduces updated rules on Advance Tax Rulings

Recently, Shanghai tax bureau issued the Administrative Measures of the Shanghai Municipal Tax Service for Advance Tax Rulings. Building upon the previously released trial measures, the new rules for the first time include tax-related matters that have already occurred but have not yet been declared within the scope of cases that may be accepted for advance rulings. In addition, the notice clarifies two types of matters that are not eligible for advance tax ruling applications:

• Matters that are substantively similar to issues currently being handled by administrative or judicial authorities;
• Matters that are identical in nature to transactions completed by the applicant in previous years for which a tax treatment conclusion has already been issued.

An advance tax ruling refers to a procedure whereby an enterprise may apply to the tax authorities for guidance on the application of tax laws and regulations to a specific and complex tax matter that is expected to occur in the future. The tax authorities will provide their opinion on the applicable tax treatment in writing based on the current tax laws and regulations.

Tax profit for returned export goods extended

Recently, the Ministry of Finance, the General Administration of Customs, and the State Administration of Taxation (SAT) jointly issued the Announcement on Preferential Tax Policies for Exported and Returned Goods in Cross-border E-commerce.

The announcement clarifies that for the period from 1 January 2026 to 31 December 2027, goods declared for export under the cross-border e-commerce customs supervision codes 1210, 9610, 9710, or 9810 which, due to unsold inventory or returns, are shipped back to China in their original condition within six months from the date of export (excluding food products), shall be exempt from import duties, import VAT and consumption tax upon re-importation. Export duties already levied at the time of export may be refunded, while VAT and consumption tax collected at the time of export shall be handled by reference to the relevant tax provisions applicable to returned goods from domestic sales. Where export tax refunds have already been claimed, the enterprise shall repay the refunded tax in accordance with the current
regulations.