In an environment where the Chinese tax and regulatory framework is undergoing a period of rapid change, the Update should prove of use to businesses in keeping informed on the latest changes. The Update complements KPMG China’s other tax-related publications, such as the ad-hoc China Tax Alert, which analyse in greater detail the implications of important new tax changes.

Issue 49 | December 2016

• Draft E-commerce Law in development
• EU Commission decision on Apple State Aid tax case
• Further VAT implementation rules (Cai Shui [2016] No. 140)State Council to adjust VAT rebates method (Guo Fa [2016] No. 71)
• China releases 2016 Catalogue of Investment Projects (Guo Fa [2016] No. 72)
• MOFCOM clarifies FIE establishment and alteration rules (Shang Zi Han [2016] No. 954)

Issue 48 | December 2016

• SAT pushes forward China’s 13th Five Year Plan agenda for giving tax rules more rigorous basis in law (Shui Zong Fa [2016] No.169)
• Rules for discretion for tax authorities to levy penalties (SAT Announcement [2016] No. 78)
• SAT clarifies CIT treatment of asset transfers and insurance premiums (SAT Announcement [2016] No.80)
• CIT refund arising from LAT settlement clarified (SAT Announcement [2016] No. 81)
• New China-Chile DTA takes effect (SAT Announcement [2016] No. 79)
• Protocol to China-Pakistan DTA signed 
• OECD advances BEPS continuity work
• China to further regulate investment projects (Decree of the State Council No.673)
• SAFE clarifies forex policy on profit repatriations by FIEs
• Revised accounting rules on VAT released (Cai Kuai [2016] No. 22)

Issue 47 | December 2016

• Adjustment to restrictions on foreign investment in China 
• China tightens restrictions on outbound investment
• Chinese government aims to reduce enterprise leverage – relevant existing tax rules highlighted (Cai Shui [2016] No.125)
• Tax incentives for advanced technology service enterprises in pilot service innovation development zones (Cai Shui [2016] No. 122)
• Further VAT implementation rules (SAT Announcement [2016] No. 75)
• Rules for abnormal VAT invoices clarified (SAT Announcement [2016] No. 76)
• SAT standardizes administration for stamp duty (SAT Announcement [2016] No. 77)
• GAC strengthens supervision on cross-border B2C e-commerce (GAC Announcement [2016] No. 75)
• China’s environmental strategy 2016-2020 outlined (Guo Fa [2016] No. 65)

Issue 46 | December 2016

• Tax treatment for Shenzhen-Hong Kong Stock Connect transactions clarified (Cai Shui [2016] No. 127)
• China to further cut taxes and fees in 2017
• China adds 10% consumption tax for luxury cars
• Further VAT rules for transfer of immovable property (SAT Announcement [2016] No. 73)
• SAT clarifies interest WHT relief in China-Denmark DTA (SAT Announcement [2016] No. 72)
• China customs administrative modernization (GAC Announcement [2016] No. 73)

Issue 45 | December 2016

• OECD releases multilateral instrument (MLI) to update more than 2,000 tax treaties worldwide
• President Xi's speech at 2016 APEC CEO summit 
• Simplified administrative procedures expanded beyond Shanghai FTZ(Hu Yin Jian Tong [2016] No. 16)
• China opens international tax service hotlineVAT invoice administration linked to taxpayer risk rating (SAT Announcement[2016] No. 71)
• VAT incentives for China-made equipment continue (Cai Shui [2016] No. 121)
• SAT clarifies LAT collection after VAT reform (SAT Announcement [2016] No. 70)
• CIT deduction for reserves of insurance companies (Cai Shui [2016] No. 114)

Issue 44 | November 2016

• Updated “China Country Practice” Chapter of the UN Practical Manual on TP for Developing Countries
• China-Cambodia DTA signed
• China to promote FTZ reforms throughout the country (Guo Fa [2016] No. 63)
• SAT and SAFE promote information sharing and implement joint supervision
• China to promote transformation of offline retail sector (Guo Ban Fa [2016] No. 78)
• China promotes innovation in domestic trade (Shang Yi Fa [2016] No. 427) 
• New cross-border B2C e-commerce supervision rules delayed in implementation until end of 2017
• Measures to revitalize the economy of northeast China (Guo Fa [2016] No.62) More cities to give tax incentives for service outsourcing (Cai Shui [2016] No.108)
• VAT exemption on cross-border taxable services (SAT Announcement [2016] No. 69)
• Internet booked taxi services – Regulation further clarified

Issue 43 | November 2016

• Global Forum advances tax transparency agenda 
• China adopts law on cybersecurity (Decree of the President No. 53)
• Tax deductions for deposit insurance premiums clarified (Cai Shui [2016] No. 106)
• Preferential import tax policy for fracking equipment (Cai Guan Shui [2016] No. 45)
• Export tax refund rates improved (Cai Shui [2016] No. 113) 

Issue 42 | November 2016

• Market access for all investors to selected business sectors with an internet-relevant dimension – Public opinions sought on draft negative list
• Customs duty administrative modernization advances (GAC Announcement [2016] No. 62) 
• New Customs Inspection Regulations – legal document format requirements clarified (GAC Announcement [2016] No.61)
• More incentives for highly compliant taxpayers – customs
• SAT “Thousand Enterprises Initiative” for co-operative tax compliance with large companies – requirements to submit financial statements clarified (SAT Announcement [2016] No. 67)
• Exchange of notes for China - Malaysia tax treaty
• China tax agents professional association releases new guidance for members (Zhong Shui Xie Fa [2016] No. 056)

Issue 41 | November 2016

• OECD advances BEPS continuity work
• EU Commission sets out EU corporate tax reform plans
• China to adopt measures to boost personal incomes (Guo Fa [2016] No. 56)
• SAT further clarifies consumption tax administration for cosmetics (SAT Announcement [2016] No. 66)
• SAT briefs on the tax revenue collected for the first three quarters of 2016 
• SAIC simplifies enterprise setup – name registration (Gong Shang Qi Zhu Zi [2016] No. 203) 
• Name list of integrated circuit (IC) manufacturing enterprises released 

Issue 40 | October 2016

• SAT enhances APA administration
• SAT public discussion draft drives CRS rollout
• VAT general tax payer status to be piloted in special customs supervision zones
• Measures to deepen reform of the business system
• OECD launches business survey on tax certainty
• China to better regulate Internet Finance

Issue 39 | October 2016

• Further implementation rules for foreign investment
• China and Georgia substantially conclude FTA negotiations
• MOF and SAT clarify the income tax treatment of administrative compromise settlement (Cai Shui [2016] No. 100)
• SAFE facilitates cargo trade (Hui Fa [2016] No. 25)
• Q&A on forex administration on cross-border equity transfer by SAFE
• Case sharing: Tax authorities use big data in actual cases

Issue 38 | October 2016

• Updates on China’s forex administration
• China to lower rate of consumption tax on cosmetics
  
• SAT clarifies tax collection for new rules on stock incentive and capital contribution with rights in technology (SAT Announcement [2016] No. 62)
• Implementation measures on customs inspection introduced (GAC Order No. 230)
• SAT to further facilitate foreign trade enterprises (SAT Announcement [2016] No. 61)
• China to cut logistics costs (Guo Ban Fa [2016] No. 69)
• MOF standardizes the accounting treatment to facilitate the supply-side reform (Cai Kuai [2016] No. 17)
• Case sharing: the first cost sharing agreement (CSA) for intra-group services in Nanjing
  

Issue 37 | September 2016

• New tax rules to boost innovation and start-ups
• OECD publishes the comments received for certain BEPS discussion drafts 
• Foreign investment in central and western China is further encouraged
• The State Council regulates the sharing of government information (Guo Fa [2016] No. 51)
• SAT further regulates the transparency on identity of tax handlers (Shui Zong Fa [2016] No. 111)
• SAIC supervision method innovation (Gong Shang Qi Jian Zi [2016] No. 185)
• Updates on the VAT reform
  

Issue 36 | September 2016

• OECD: Status report on BEPS, CRS for G20 leaders
• New rules for restructuring listed companies (CSRC Order No. 127)
• New Protocol to China-Estonia DTA takes effect (SAT Announcement [2016] No. 60)Further VAT implementation rules from SATSAT clarifies issues for carrying out the special inspection on use and administration of VAT invoices (Shui Zong Han [2016] No. 455)New VAT refund policies for foreign embassies (consulates) in China consuming goods and services (MOF & MFA Announcement [2016] No. 58)

Issue 35 | September 2016

• G20 and B20 summits held in Hangzhou
• China revises inbound investment laws
• SAT releases the new China-Romania DTA
• China relaxes foreign financial investment quota rules (Yin Fa [2016] No. 227)
• China’s supreme legislature passes IT tariff bill
• AEO mutual recognition piloted between Mainland and Taiwan (GAC Announcement [2016] No. 49)
• Further VAT implementation rules from SAT
• Continuance of existing tax incentives for heat-supply enterprises in certain regions (Cai Shui [2016] No. 94)
• MOF solicits opinions on the revised Accounting Standards for Business Enterprises (Cai Ban Kuai [2016] No. 36)

Issue 34 | September 2016

• EU concluded Ireland granted undue tax benefits of up to €13 billion to Apple
• China moves toward taxation on pollutants
• Further VAT implementation rulesSAT clarifies certain tax collection issues for VAT reform (SAT Announcement [2016] No. 53)SAT clarifies the VAT treatment of running water charges in the property management services (SAT Announcement [2016] No. 54)Beijing State Tax Bureau clarifies the usage of invoices for fee-collecting services provided by banksChina to facilitate processing trade business

Issue 33 | August 2016

• OECD seeks public comments on discussion draft of branch mismatch structures under BEPS Action 2 
• New measures to reduce corporate costs (Guo Fa [2016] No. 48)
• Continuance of existing tax incentives for science and technology enterprise incubators (Cai Shui [2016] No. 89)
• Tax refund policy for goods exported via finance leasing further clarified (Cai Shui [2016] No. 87)
• SAT to classify & grade taxpayers (Shui Zong Fa [2016] No. 99)
• Sanctions on manufacturing operation breaching standards/rules in environmental protection (Fa Gai Cai Jin [2016] No. 1580)
• SAT standardizes the local taxes/fees collected by state tax authorities (Shui Zong Fa [2016] No. 127)
• Further VAT implementation rules from MOF and SAT
• Beijing tax authorities no longer request tax-related assurance reports for CIT annual filing (BSTB & BLTB Announcement [2016] No. 29)
  

Issue 32 | August 2016

• China approves Shenzhen-Hong Kong Stock Connect
• China to further push forward the animation industry(Cai Guan Shui [2016] No. 36)
• Tax incentives for student apartments & canteens continued(Cai Shui [2016] No. 82)
• Further VAT implementation rules
• SAT “names and shames” significant tax fraud cases
• SAT forbids tax officials from intervening in tax intermediary’s operations(Shui Zong Han [2016] No. 389)
• Local governments to further regulate tax collection
  
• Beijing launches 2016 high-tech enterprises recognition(Jing Ke Fa [2016] No. 465)
• Shanghai enhances contemporaneous and follow up supervision for Shanghai pilot FTZ and Pudong new area(Hu Fu Ban Fa [2016] No. 30)
  

Issue 31 | August 2016

• Jiangsu tax bureau to further push forward the development of international tax (Su Guo Shui Fa [2016] No. 125)
• Selective tariff policy on domestic sales expanded (Cai Guan Shui [2016] No. 40)
• NDRC plans to expand accelerated depreciation policy to all emerging industries
• Further VAT implementation rules
• BLTB further clarifies the facilitation of tax handling for Beijing taxpayers (BLTB Announcement[2016] No. 10)
• BSTB to take leading role in international tax administration
• MOF solicits opinions on the revised Accounting Standards for Business Enterprises

Issue 30 | August 2016

• New China-Russia DTA takes effect
• China-Poland air transport tax agreement takes effect 
• SAT and local authorities to further drive Resource Tax reform
• Further VAT implementation rules from CSRC
  
• ‘Five licenses into one’ reform pushed forward  (Gong Shang Qi Zhu Zi [2016] No.150)
• MOFCOM responds to Didi-Uber deal
• A case of a China Service PE

Issue 29 | August 2016

• G20 meeting held in Chengdu
• New development of taxi industry
• China to strengthen administration on Internet Advertising (SAIC Order No. 87)
• Further VAT implementation rules
  
• New measures to facilitate export enterprises (SAT Announcement [2016] No. 46)
• State Council issues guideline on reorganization of SOEs (Guo Ban Fa [2016] No. 56)
• China set up one new National Independent Innovation Demonstration Zone (NIIDZ) (Guo Han [2016] No. 130)
• SAIC to facilitate trademark registration (Gong Shang Biao Zi [2016] No. 139)
  

Issue 28 | July 2016

• Foreign investment in FTZs facilitated (Guo Fa [2016] No. 41)
• Scope of service outsourcing industry clarified (Joint Announcement [2016] No. 29 by MOFCOM, MOF and GAC)
• Private securities fund management businesses are open for foreign investors
• Listed company use of equity incentive plans facilitated(CSRC Order No. 126)
• The 3rd Protocol to mainland China-Macao DTA signed
• Further VAT implementation rules
• SAT summarizes its work for 2016 H1
• Shanghai launches 2016 high-tech enterprises recognition
• Beijing adjusts Resource Tax rate to implement the reform (Jing Cai Shui [2016] No.1130) 
• Shenzhen clarifies recordal filing for enjoyment of preferential CIT policies for software and IC enterprises (Shenzhen STB and Shenzhen LTB Announcement [2016] No. 9)
  

Issue 27 | July 2016

• SAT enhances TP reporting and documentation (SAT Announcement [2016] No. 42)
• OECD announces further BEPS implementation steps
• Incentives for taxpayers with class-A tax credit rating (Fa Gai Cai Jin [2016] No.1467)
• Further rules to promote business system reform
  
• Further VAT implementation rules
  
• SAT revises Land Appreciation Tax (LAT) filing forms (Shui Zong Han [2016] No. 309)
• Insurance agency tax collection clarified (SAT Announcement [2016] No. 45)
• Tax administration for taxpayers operating across tax districts (Shui Zong Fa [2016] No. 106)
• Facilitation of tax handling for Beijing taxpayers
• Limitation of discretion for Beijing tax authorities to levy penalties (BSTB and BLTB Announcement [2016] No. 22)
• MOF plans to regulate the accounting treatment of bankruptcy and liquidation(Cai Ban Kuai [2016] No. 28)
  

Issue 26 | July 2016

• OECD releases a series of documents on the continuity BEPS work
• New DTA signed between China and Romania
• Administration for tax residence certificates clarified (SAT Announcement [2016] No.40)
• Rules on Customs Inspection revised (State Council Order No. 670)
• Further VAT implementation rules from MOF and SAT
  
• Further rules to push forward business system reform
  
• Further efforts to deepen reform of state tax and local tax collection administration systems
  
• Public consultation on new framework for formulation of local tax authority-issued tax guidance
  

Issue 25 | July 2016

• New administrative guidelines for recognition of high and new technology enterprises (HNTEs) (Guo Ke Fa Huo [2016] No.195)
• SAT revised tax filing forms for Resource Tax (SAT Announcement [2016] No.38）
• Further VAT reform implementation rulesSAT issues notice on implementation of analysis for VAT reform pilot and improvement of tax services (Shui Zong Fa [2016]No.95)
• China sets up two new National Independent Innovation Demonstration Zones (NIIDZs)
• Guidelines on cooperation between the State Tax Bureau and the Local Tax Bureau [Version 3.0]
• Hong Kong joins global inclusive framework for implementation of BEPS
• SAT response to reply Beijing enforcement case clarifies position on deductibility of insurance payments (Shui Zong Han [2016] No. 274)
• Beijing State Tax Bureau (BSTB) anti-avoidance activities 
  
• Real time information exchange of customs data under China-South Korea FTA (GAC Announcement [2016] No. 39)
• List of Key Tax Policies in the first half of 2016
  

Issue 24 | July 2016

• New China-Germany DTA takes effect (SAT Announcement [2016] No. 37)
• China and Poland sign air transport tax agreement
• CSRC plans new rules for restructuring listed companies 
• Further VAT implementation rules by MOF and SAT
• SAT “names and shames” a further 10 tax fraud cases

Issue 23 | June 2016

• OECD TP Guidelines updated for BEPS changes
• SAT clarifies the use of HK tax residence certificate in mainland China (SAT Announcement [2016] No. 35)
• STB and LTB new joint tax audit measures (Shui Zong Fa [2016] No. 84)
• SAFE relaxes capital account forex settlement (Hui Fa [2016] No. 16)
• GAC further expands the bonded supervision model for ATSE to another 14 trial cities (GAC Announcement [2016] No. 36)
• An initiative to deal with non-compliance by dormant enterprises (Gong Shang Qi Jian Zi [2016] No. 97)
• Further local VAT reform implementation rules
• New scheme of China (Shanghai) Cross-border E-commerce Pilot Zone released (Hu Fu Ban Fa [2016] No. 23)
• Shanghai gives certain tax benefits automatic effect
• New administrative procedures on settlement of Land Value-added Tax (LVAT) in Beijing (BLTB Announcement [2016] No. 7)
  

Issue 22 | June 2016

• Discussion draft on multilateral instrument to implement tax-treaty related BEPS measures released
• Trade in services and investments by HK and Macao service providers in mainland China facilitated (Guo Fa [2016] No. 32)
• Regulations on China (Guangdong) Pilot Free Trade Zone (FTZ) introduced(Standing Committee of the twelfth Guangdong Province People’s Congress Announcement No. 60)
• Joint reporting of annual investment & operating information of FIEs for year 2015 commenced (Shang Zi Han [2016] No. 223)
• Tax incentives on rental market of residential houses initiated by the State Council (Guo Ban Fa [2016] No. 39)
• Further local VAT reform implementation rules

Issue 21 | June 2016

• Integrated customs clearance piloted in Shanghai
• SAT strengthens Risk-Based Tax Audit
• Further VAT reform  implementation rules
  
• SAT releases management measures on preferential VAT policy to promote employment of disabled persons (SAT Announcement [2016] No. 33)
• Two ministries jointly issue notice on further cooperation on Public-Private Partnership (PPP) (Cai Jin [2016] No. 32)
• MOF initiative to increase openness and transparency moves forward
• Forex administrations for foreign institutional investors investing in the inter-bank bond market (Hui Fa [2016] No. 12)
  

Issue 20 | June 2016

• MOF suspends customs clearance requirements for cross-border B2C e-commerce
• SAT clarifies how tax audit cases will be identified (Shui Zong Fa [2016] No. 71)
• BEPS deliverables on transfer pricing implemented by BSTB
• MOF and SAT clarify VAT reform policies for specific enterprises
  
• 4 authorities jointly clarify issues for key software and IC design enterprises under the State planning (Fa Gai Gao Ji [2016] No. 1056)
• State Council facilitates integration of manufacturing industry with internet (Guo Fa [2016] No. 28)
• State Council sets out 15 key work items for 2016 (Guo Fa [2016] No. 30)
• MOFCOM to increase openness and transparency (Shang Ban Ting Han [2016] No. 229)
• Beijing launches out paperless management pilot on export tax refund/exemption (BSTB Announcement [2016] No. 13)
• BSTB introduces electronic ordinary VAT invoice in telecommunication industry (BSTB Announcement [2016] No. 16)
  

Issue 19 | May 2016

• The State Council promotes business system reform 
• State Council opinions on establishing mass entrepreneurship and innovation demonstration bases (Guo Ban Fa [2016] No. 35) 
• Communiqué of the 10th Meeting of the OECD Forum on Tax Administration (FTA) SAT exposes 5 fraud cases on export tax refund 
• SAT further clarifies VAT reform implementation rules (Shui Zong Na Bian Han [2016] No. 71) 
• Trial recordal filing administrations on HK and Macao service providers making investments in mainland China (MOFCOM Announcement [2016] No. 20) 
• 2016 cooperation plan between Ministry of Finance (MOF) and OECD enters into implementation

Issue 18 | May 2016

• The 10th FTA meeting held in Beijing
• China to drive Resource Tax reform comprehensively
• Four VAT reform implementation rules issued by SAT
  
• State Council seeks to promote foreign trade (Guo Fa [2016] No. 27)
• State Council adjusts certain administrative approval items for Shanghai Pudong new area (Guo Fa [2016] No. 24)
• MOF and SAT clarify CIT policies concerning equity donation for charity purposes (Cai Shui [2016] No. 45)
  

Issue 17 | May 2016

• Preferential Corporate Income Tax policies for software and integrated circuit enterprises (Cai Shui [2016] No. 49)
• Further rules on VAT reform from SAT and MOT 
• SAFE facilitates trade and investment and improves verification procedures (Hui Fa [2016] No. 7)
• The 10th FTA meeting to be held in May in Beijing
  

Issue 16 | May 2016

• More implementation rules on VAT reform released by the State Council, MOF and SAT
• SAT revises rules on public disclosure of tax fraud cases (SAT Announcement [2016] No. 24)
• New Administrative Measures for Accreditation of State-level Corporate Technology Centres (Order [2016] No. 34 by NDRC and other 4 authorities)
• State Council pushes forward “Internet + Circulation” initiatives (Guo Ban Fa [2016] No. 24)
  

Issue 15 | April 2016

• 2016 legislation work plan of the State Council (Guo Ban Fa [2016] No. 16)
• SAT clarifies some tax collection and administration issues for the VAT reform (SAT Announcement [2016] No. 23)
• The second batch of imported products for cross-border B2C e-commerce released (Announcement [2016] No. 47 by MOF and other 10 authorities)
• GAC revises the custom declaration form and record filing list for inbound and outbound goods (GAC Announcement [2016] No. 28)
• The State Council releases detailed plan on accelerating Shanghai’s transformation into a world-class technical innovation center (Guo Fa [2016] No. 23)
• Protocol to China-Indonesia DTA comes into effect (SAT Announcement [2016] No. 21)
• Beijing tax authorities issue tax support policies to divert the functions not related to Beijing being the capital of China (Non-capital functions of Beijing) (Jing Di Shui Fa [2016] No. 72)

Issue 14 | April 2016

• New implementation rules for cross-border B2C e-commerce
• Updates on VAT reform by MOF and SAT
• SAT extends the claim deadline for export tax refund / exemption in 2016 (SAT Announcement [2016] No. 22)
• SAT clarifies issues on entrusting local tax authorities to collect VAT and issue VAT invoice (Shui Zong Han [2016] No. 145)
• Beijing adjusts pricing basis of construction projects for VAT reform (Jing Jian Fa [2016] No.116)
• SAT clarifies Business Tax issues on securities marginal trading (SAT Announcement [2016] No. 20)
• SAT strengthens management on key tax sources and high-risk items of CIT (Shui Zong Han [2016] No.148)
• SAT improves tax services and government transparency 
  

Issue 13 | April 2016

• State Administration of Taxation (SAT) issues detailed VAT reform interpretation guidance
• Preferential tax policies for imported natural gas adjusted (Cai Guan Shui [2016] No.16)
• Ministry of Commerce (MOFCOM) issues preliminary determinations of anti-dumping investigations to certain imported products (MOFCOM Announcement [2016] No. 9 and No. 10)
• Tax preferential policies on certain national commodity reserve enterprises (Cai Shui [2016] No. 28)
• GAC decisions on the HS code classification of certain products (II) & (III) for 2016 (GAC Announcement [2016] No. 21 and No. 22)
  

Issue 12 | April 2016

• China’s import tax policies for cross-border e-commerce (Cai Guan Shui [2016] No.18 / Shui Wei Hui [2016] No.2)
• Interpretation on new VAT rules by Shanghai tax authority and Tax Guidance on VAT reform for key industries by BSTB
• GAC revises standards for filling in customs declaration forms (GAC Announcement [2016] No.20)
• China to set up 3 new National Independent Innovation Demonstration Zones (NIIDZs) and to accelerate the construction of Shanghai Scientific and Technological Innovation Center
• State Council’s opinions on work allocation for key tasks set out in 2016 Report on the Work of the Government (Guo Fa [2016] No.20)
• SAT clarifies Business Tax issues on sale of housing at cost (Shui Zong Han [2016] No.124)
• Four authorities standardize application and approval for establishment of B type customs bonded logistics centers (GAC Announcement [2016] No.18)

Issue 11 | March 2016

• MOF and SAT issue notice on VAT reform implementation (Cai Shui [2016] No.36)
• Beijing State Tax Bureau’s efforts on facilitation of VAT reform
• Financial & tax system reform to be accelerated pursuant to the Outline of the 13th Five Year Plan
• General Administration of Customs (GAC) opens the client software and business data exchange interface for the customs pre-input system (GAC Announcement [2016] No.16)
• GAC issues interim measures for exemption of import taxes on charity donation materials (GAC Announcement [2016] No.17)

Issue 10 | March 2016

• The Director of SAT responds to the hot issues of VAT reforms 
• 2016 NPC & CPPCC: Proposals for advancing financial and tax reforms and legislations by NPC
• Real estate tax law included in the preparatory item of 2016 legislation plans
• Charity law adopted by National People's Congress (NPC)
• The 4th Protocol to China-HK DTA enters into force (SAT Announcement [2016] No.12)SAT & OECD jointly set up a multilateral tax centreBeijing State Tax Bureau promotes issuance of electronic ordinary VAT invoices through the electronic VAT invoice systemApplication for enjoyment of preferential import tax policies for the key technical equipment clarified (Gong Xin Ting Lian Cai [2016] No. 40)GAC ceases the pre-approval of deferred payment of Tariffs and Duties collected by the customs on imports (GAC Announcement [2016] No.15)

Issue 9 | March 2016

• Report on the Work of the Government (2016) – Tax related topics
• Ministry of Finance (MOF): Minister of the MOF answers questions on financial and tax reform
• MOF: Tax incentives will generally continue during the VAT reform period
• General Administration of Customs (GAC): Speed up the integration of special customs regulation zones
• GAC: Create new foreign trade growth point and guide the backflow of overseas consumption
• Q&A by three departments on the new version of Administrative Measures for Recognition of High and New Technology Enterprise (HNTE)
• SAT clarifies certain issues concerning the tax administrative approvals (SAT Announcement [2016] No. 11) 
• SAT issues guidance opinions on enhancing the in-process and post administration (Shui Zong Fa [2016] No. 28)

Issue 8 | March 2016

• VAT reform fully implemented from 1 May 2016 and effective tax burden of all industries shall be reduced
• Global tax cooperation reaches new high. All non-G20 countries and jurisdictions are invited to join
• State Council eliminates tax pre-approvals and amends foreign investment procedures for telecoms and insurance sectors (State Council Order No. 666)
• The State Council issues provisions to facilitate the transformation of scientific and technological results (Guo Fa [2016] No.16)
• Incentives for state-owned science and technology enterprises expanded to whole country (Cai Zi [2016] No. 4)
• SAT implements the State Council’s decision on cancellation of 152 administrative approval items (Shui Zong Fa [2016] No. 23 / SAT Announcement [2016] No. 10)
• State Council collates and standardizes the 2nd batch of 192 administrative approval items which involve intermediary services (Guo Fa [2016] No. 11) 
• SAT’s replies on tax-related suggestions and proposals from NPC and CPPCC

Issue 7 | February 2016

• The State Council issues guidance to encourage the development of Group Innovation Space (GIS) (Guo Ban Fa [2016] No. 7)
• State Council approves pilot schemes for service trade innovation (Guo Fa [2016] No. 40)
• State Council cancels the second batch of 152 administrative approval items (Guo Fa [2016] No. 9)
• SAT implements the new Administrative Measures for Recognition of High and New Technology Enterprise (HNTE) (Shui Zong Han [2016] No. 74)
• SAT improves the administration of tax credit rating (SAT Announcement [2016] No. 9)
• SAT improves the administration mechanism of taxation service complaints (Shui Zong Han [2016] No. 57)
• Pricing basis of construction projects will need to be adjusted following the VAT reform of the construction industry (Jian Ban Biao [2016] No. 4)
• Preferential Deed Tax and Business Tax policies for real estate transactions (Cai Shui [2016] No. 23)
• Improving permanent residence administration for foreigners in China
• The 11th round of negotiations for Regional Comprehensive Economic Partnership (RCEP) held in Brunei
• The first round of negotiations for China-Georgia free trade agreement (FTA) held in Georgia

Issue 6 | February 2016

• SAT announces the key tasks of taxation work in 2016 (ShuiZongFa [2016] No. 15)
• SAT cancels VAT invoice authentication process for taxpayers with class A tax credit rating (SAT Announcement [2016] No. 7)
• The State Council launches service trade innovation zone pilot schemes
• The State Council supports scientific and technological transformation
• Beijing municipal government recognition of 2015 R&D projects for incentive purposes
• Shanghai tax offices clarify implementation issues on reorganisation tax relief of asset (equity) transfer (Hu GuoShuiHan [2016] No. 11)

Issue 5 | February 2016

• New version of Administrative Measures for Recognition of High and New Technology Enterprise (HNTE) released
• Administration for qualified foreign institutional investor (QFII) arrangements revised
• Import tax issues concerning repair businesses of air materials under a guarantee arrangement clarified
• Administration on dutiable value for operating lease of aircraft revised
• Paperless customs clearance on automatic import permit expanded nationwide
• Measures to develop the Yangtze River Economic Belt
• Tax measures for the “One Belt One Road” strategy
• SAT deepens global tax cooperation and upgrades international tax rules
• 31 countries signed agreement to enable automatic sharing of country-by-country information
• The State Tax Bureau (STB) of Tianjin Economic and Technological Development Zone (ETDZ) reminded on tax risks of overseas remittance
• The 24th round of negotiation on China-US investment agreement held in Beijing

Issue 4 | February 2016

• Forum on Value Added Tax (VAT) reforms and rebalancing central-local tax revenue allocations in 2016
• Improvement of tax services for large enterprises
• SAT revises Corporate Income Tax (CIT) Filing Forms
• Exemption threshold for governmental funds increased
• SAT Q&A on reform plan for the state and local tax collection and administration system
• Implementation of Multilateral Convention on Mutual Administrative Assistance in Tax Matters
• Fourth Protocol to China-HK DTA effective
• SAT issues 10 measures to support Shanghai Scientific and Technological Innovation Centre
• Compensation on investment to scientific and technological innovation enterprises in Shanghai

Issue 3 | January 2016

• National Tax Work Conference sets Tax Tasks for 2016 
• Notice on Taxpayer Relocations in Beijing, Tianjin and Hebei (Shui Zong Fa [2015] No. 161)
• Administration Improvements for Export Tax Refund/Exemption (SAT Announcement [2016] No. 1)
• Further Clarifications on Tax Administrative Approvals (Shui Zong Fa Bian Han [2015] No. 461) 
• Notice regarding the Adjustment on Recognition and Approval of Public Welfare Donation Qualified for Pre-tax Deduction (Cai Shui [2015] No. 141) 
• State Council seeks to promote development of the Processing Trade (Guo Fa [2016] No. 4) 
• Approval of the State Council on Establishing Cross-Border E-Commerce Comprehensive Pilot Zones in 12 Cities (Guo Han [2016] No. 17) 
• Guidance on preparing for Construction Industry VAT Reform

Issue 2 | January 2016

• Standing Meeting of the State Council Agreed to Set up New Cross-border E-commerce Comprehensive Pilot Zones in 12 Cities
• Standing Meeting of the State Council Determined to Improve the Administrative Measures on Recognition of High-tech Enterprises 
• Standing Meeting of the State Council Decided to Launch More Reform Measures on Streamlining Administration and Instituting Decentralization 
• Notice regarding Certain Issues on Ceasing the Use of Special VAT Invoices for Cargo Transportation Industry (SAT Announcement [2015] No. 99) 
• Notice regarding Information Collection of Non-Transport Vehicles with Fixing Devices (SAT & MIIT Announcement [2015] No. 96) 
• Guidelines on Cooperation between the State Tax Bureau and the Local Tax Bureau (Version 2.0) 
• Notice regarding the Tariff Execution Plan 2016 (GAC Announcement [2015] No. 69)

Issue 1 | January 2016

• Notice regarding Certain Issues on Research and Development Expenses Super Deduction Policies (SAT Announcement [2015] No. 97)
• Local Notice on 2015 Corporate Income Tax Annual Filing
• Notice regarding the Pilot Program of Power and Responsibility List Compiled by Several Ministries of the State Council (Guo Ban Fa [2015] No. 92)Notice regarding the Enhancement of Entrusted Tax Collection between State Tax Bureau and Local Tax Bureau (Shui Zong Fa [2015] No. 155)
• Determination regarding the Revision of (SAT Order No. 38)
• Determination regarding the Revision of (SAT Order No. 39)
• Notice regarding the Adjustment of the Sharing Ratio Between the Central and Local Authorities of the Stamp Duty arising from Transactions in Securities (Guo Fa Ming Dian [2015] No. 3)
• Notice regarding Health Insurance Businesses Eligible for Preferential Individual Income Tax Policies (Bao Jian Ting Fa [2016] No. 1)
• List of Key Tax and Customs Policies Take Into Effect from 1 January 2016