5 Major Developments in China

5 Major Developments in China

• SAP: Manage Input VAT Declaration – China

• Brussels plans to slap sanctions on Chinese companies aiding Russia

• Free Trade Commission eliminates customs duties for certain products from China

• Ministry intends to standardize list of integrated circuit enterprises enjoying VAT deduction policy

• China introduces ‘super-input VAT credit’ policy for integrated circuit enterprises

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Customs

• Free Trade Commission eliminates customs duties for certain products from China

• Brussels plans to slap sanctions on Chinese companies aiding Russia

• China initiated new “trade barrier investigation” against Taiwan

• EU wins World Trade Organization case on India’s tariffs on information and communication technology products

Deduction (Input Tax Credit)

• China introduces ‘super-input VAT credit’ policy for integrated circuit enterprises

• Ministry intends to standardize list of integrated circuit enterprises enjoying VAT deduction policy

E-Commerce / Electronic Services

• Conducting business in China? Plan for a potential new VAT on digital services

E-invoicing

• China expands e-invoicing pilot program

• Fully Digitalized e-Fapiao is expanding to cover new selected taxpayers

• E-fapiao pilot continues to advance in new regions

• China special e-fapiao mandatory VAT invoice update

• Expanding Fully Digitalized E-Invoice Pilot Program

Reporting / Compliance

• SAP: Manage Input VAT Declaration – China

Taxable Amount

• China Customs’ new practice further challenges the implementation of post-importation TP adjustments

Tax Authorities / Penalties

• Taiwan and Palau Strengthen Substantive Financial Cooperation through Multifaceted Exchange

Technology

• SAP: Manage Input VAT Declaration – China

Transfer Pricing

• China Customs’ new practice further challenges the implementation of post-importation TP adjustments

War in Ukraine

• Brussels plans to slap sanctions on Chinese companies aiding Russia