1China Tax & Investment Express

China Tax Center

China Tax & Investment Express

China Tax & Investment Express (CTIE)* brings you the latest tax and business announcements on a weekly basis. CTIE provides a synopsis of each announcement including a link that leads you to the full content of the announcement (in Chinese). Please feel free to contact your EY client service professionals for further assistance if you find the announcements have an impact on your business operations.

CTIE does not replace our China Tax & Investment News* which will continue to be prepared and distributed to provide more in-depth analyses of tax and business developments in China.

*If you wish to access the previous issues of CTIE and China Tax & Investment News, please contact us.

Tax circulars

► Notice regarding the implementation of preferential tax policies for alleviating poverty (Caishui [2018] No. 131)

Synopsis

On 8 November 2018, the Ministry of Finance (MOF) released Caishui[2018] No. 131 (“Circular 131”) for the implementation of preferential tax policies for alleviating poverty. Circular 131 lists 48 prevailing tax circulars which introduce preferential tax treatments to provide support to charitable donations, financing, development of poverty-stricken areas and employment/entrepreneurship of the low-income groups.

For your easy reference, we have summarized the main contents of the relevant circulars in the table below (please click the relevant circular numbers to access the full contents of the respective circulars):

Issue No. 2018045

23 November 2018

Nos. Circular numbers/titles Remarks

1 Caishui [2018] No. 97, i.e., Notice regarding Value-added Tax (VAT) policies for agriculture-related loans for the rural finance division of the Postal Savings Bank of China

From 1 July 2018 to 31 December 2020, interest income derived from agriculture-related loans by the rural finance division of the Postal Savings Bank of China may be subject to VAT at the rate of 3% by applying the simplified VAT calculation method.

2China Tax & Investment Express

Nos.

(cont’d)Circular numbers/titles (cont’d) Remarks (cont’d)

2 Caishui [2018] No. 91 (“Circular

91”), i.e., Notice regarding the

exemption of VAT for financial

institutions’ interest income from

loans to small and micro-sized

enterprises (SMEs)

From 1 September 2018 to 31 December 2020, interest

income derived by financial institutions from loans to SMEs

and self-employed industrial and commercial households,

shall be exempt from VAT. (Please refer to CTIE2018036

for details of Circular 91.)

3 Caishui [2017] No. 77 (“Circular

77”), i.e., Notice regarding

certain tax policies for supporting

the financing of small and SMEs

► From 1 December 2017 to 31 December 2019, interest income derived by financial institutions from small loans to farmers, SMEs and self-employed industrial and commercial households, shall be exempt from VAT.

► From 1 January 2018 to 31 December 2020, loan agreements entered into by financial institutions and SMEs are exempt from Stamp Duty (SD).

(Please refer to CTIE2017043 for details of Circular 77.)

4 Caishui [2017] No. 76 (“Circular

76”), i.e., Notice regarding the

extension of VAT policies for

SMEs

From 1 January 2018 to 31 December 2020, small-scale VAT taxpayers who derive monthly VAT-taxable turnover from RMB20,000 (inclusive) to RMB30,000 shall be exempt from VAT. (Please refer to CTIE2017043 for details of Circular 76.)

5 Caishui [2017] No. 49 (“Circular

49”), i.e., Notice regarding the

extension of certain tax policies

for supporting and promoting the

entrepreneurship and

employment

Circular 49 introduces various tax policies to promote entrepreneurship and employment during 1 January 2017 to 31 December 2019.

6 Caishui [2017] No. 48 (“Circular

48”), i.e., Notice regarding tax

policies for small loan companies

Circular 48 introduces preferential VAT and Corporate

Income Tax (CIT) policies for small loan companies from 1

January 2017 to 31 December 2019.

7 Caishui [2017] No. 36 (“Circular

36”), i.e., Notice regarding the

extension of VAT policies on

Xinjiang International Grand

Bazaar projects

Circular 36 introduces VAT exemption policy for Xinjiang

International Grand Bazaar projects from 1 January 2017

to 31 December 2019.

8 Caishui [2016] No. 73 (“Circular

73”), i.e., Notice regarding the

extension of tax policy for tea

sold in border areas of China

VAT exemption policy for tea sold in border areas of China is extended to 31 December 2018.

9 Caishui [2016] No. 46 (“Circular

46”), i.e., Notice regarding

further clarifications on policies

for the finance industry upon

launching the final stage of VAT

pilot arrangements

► For income derived from financial services by rural credit cooperatives (农村信用社), village banks (村镇银行), rural credit union funds (农村资金互助社), loan companies fully funded by banking institutions, and rural cooperative banks and rural commercial banks with their legal entities located in counties or below, the taxpayers may choose to apply the simplified calculation method to calculate VAT at a collection rate of 3%.

► For interest income derived by designated branches of the Agricultural Bank of China at the county level from the provision of selected agricultural related loans as prescribed in Circular 46 and listed in its attachment, the taxpayers may choose to apply the simplified calculation method to calculate VAT at a collection rate of 3%.

(Please refer to CTIE2016028 for details of Circular 46.)

3China Tax & Investment Express

Nos.

(cont’d)Circular numbers/titles (cont’d) Remarks (cont’d)

10 Caishui [2013] No. 57 (“Circular

57”), i.e., Notice regarding the

expansion of industry scope for

the pilot run of deemed input VAT

credit for agricultural products

From 1 Sept 2013, tax authorities at the provincial level

shall coordinate with financial departments at the same

level to select certain industries for the pilot run of deemed

input VAT credit of respective locations. (Please refer to

CTIE2013035 for details of Circular 57.)

11 Caishui [2013] No. 52 (“Circular

52”), i.e., Notice regarding the

temporary VAT and Business Tax

(BT) exemption on certain SMEs

From 1 August 2013, enterprises or non-enterprise units

that are small-scale VAT taxpayers and have monthly sales

not exceeding RMB 20,000 shall be exempt from VAT on a

provisional basis. (Please refer to CTIE2013030 for details

of Circular 52.)

12 Caishui [2012] No. 75 (“Circular

75”), i.e., Notice regarding VAT

exemption for the trading of

certain fresh meat and egg

products

Wholesale or retail of fresh meat and egg products listed in

Circular 75 are exempt from VAT. (Please refer to

CTIE2012033 for details of Circular 75.)

13 Caishui [2012] No. 38 (“Circular

38”), i.e., the “Administrative

Measures on the Pilot Run of

Deemed Input VAT Credit for

Agricultural Products in Certain

Industries”

Circular 38 introduces administrative measures on the pilot

run of deemed input VAT credit for agricultural products in

certain industries. (Please refer to CTIE2012016 for details

of Circular 38.)

14 Caishui [2011] No. 137 (“Circular

137”), i.e., Notice regarding

certain issues related to VAT

exemption for the trading of

vegetables

Wholesale or retail of vegetables listed in the attachment of

Circular 137 (including those were selected, washed, cut,

air-cured, packed, evaporated, chilled or frozen but except

for canned vegetables) are exempt from VAT. (Please refer

to CTIE2012003 for details of Circular 137.)15 Caishui [2011] No. 89 (“Circular

89”), i.e., Notice regarding the

tax policy for tea sold in border

areas of China

Circular 89 introduces tax exemption policy for tea sold in

border areas of China which has been extended to 31

December 2018 by above-mentioned Circular 73.

16 Caishui [2009] No. 9 (“Circular

9”), i.e., Notice regarding the

application of reduced VAT rate

and simplified VAT calculation

method

Circular 9 introduces certain goods that are applicable to

the reduced VAT rate and simplified VAT calculation method

(the details have been further adjusted by Caishui [2014]

No. 57, Caishui [2017] No. 37 and Caishui [2018] No. 32.

17 Caishui [2008] No. 81 (“Circular

81”), i.e., Notice regarding tax

policies for farmers’ professional

cooperatives

Circular 81 introduces preferential VAT and SD treatments

for farmers’ professional cooperatives.

18 Caishui [2008] No. 56 (“Circular

56”), i.e., Notice regarding VAT

exemption for organic fertilizers

Manufacturing, wholesale or retail of vegetables organic

fertilizers are exempt from VAT.

19 Caishui [2007] No. 83, i.e.,

Notice regarding VAT exemption

for drip tapes

Manufacturing, wholesale or retail of drip tapes are exempt

from VAT.

4China Tax & Investment Express

Nos.

(cont’d)Circular numbers/titles (cont’d) Remarks (cont’d)

20 Caishui [2001] No. 113, i.e., Notice

regarding VAT exemption for certain

productions used for agricultural

production purposes

Certain products, such as agricultural plastics, are

exempt from VAT.

21 Caishuizi [1998] No. 47, i.e., Notice

regarding the VAT exemption for

maintenance fee for rural power grid

(official weblink cannot be located)

The maintenance fee for rural power grid is exempt

from VAT.

22 Caishuizi [1995] No. 52 (“Circular

52”), i.e., Notice regarding the

footnotes of tax scope for agricultural

products

Circular 52 clarifies the detailed tax scope of

agricultural products. (Certain contents have been

further adjusted by circulars released after Circular

52.)

23 Caishui [2018] No. 77 (“Circular 77”),

i.e., Notice regarding further

expanding the scope of qualified SMEs

eligible for preferential CIT treatments

According to Circular 77, from 1 January 2018 to 31

December 2020, qualified SMEs that derive annual

taxable income of RMB1 million or below are eligible

for both the 50% reduction of taxable income and the

reduced CIT rate of 20%; regardless they are taxed at

an actual basis or deemed basis. (Please refer to

CTIE2018028 for details of Circular 77.)24 Caishui [2018] No. 15 (“Circular 15”),

i.e., Notice regarding policies related

to the deduction of charitable donation

for CIT purposes

Charitable donations made by an enterprise are

deductible for CIT purposes with a cap at 12% of its

annual profit. Any excess amount is allowed to be

carried forward for the following three years for CIT

deduction. (Please refer to CTIE2018009 for details of

Circular 15.)25 Caishui [2017] No. 44 (“Circular 44”),

Notice regarding the extension of

certain tax policies for supporting the

development of rural finance

Circular 44 grants the extension of certain preferential

tax policies for supporting the development of rural

finance from 1 January 2017 to 31 December 2019.

(Article 1 of Circular 44 has been revoked. Please refer

to CTIE2017024 for details of Circular 44.)26 Caishui [2017] No. 22 (“Circular 22”),

i.e., Notice regarding CIT issues

related to the deduction of provisions

of qualifying financing (credit)

guarantee institutions for SMEs

Circular 22 introduces policies regarding CIT deduction

related to guarantee compensation reserve, unearned

premium reserves, etc. (Please refer to CTIE2017014

for details of Circular 22.)

27 Caishui [2016] No. 85, i.e., Notice

regarding the improvement of the

Catalog of Preferential CIT Treatment

for Key Encouraged Industries in

Financially Strained Regions of

Xinjiang (official weblink cannot be

located)

N/A

28 Caishui [2015] No. 9 (“Circular 9”),

i.e., Notice regarding CIT policies

related to the deduction for loan loss

provisions made by financial

institutions

Circular 9 introduces policies regarding CIT deduction

for loan loss provisions made by financial institutions

(i.e., policy banks, commercial banks, finance

companies, credit cooperative) in urban and rural

areas. (Please refer to CTIE2015005 for details of

Circular 9.)29 Caishui [2015] No. 3 (“Circular 3”),

i.e., Notice regarding CIT policies

related to the deduction for loan loss

provisions made by financial

institutions on loans provided to the

agricultural industry and SMEs

Circular 3 introduces policies regarding CIT deduction

for loan loss provisions made by financial institutions

on loans provided to the agricultural industry and

SMEs. (Please refer to CTIE2015005 for details of

Circular 3.)

5China Tax & Investment Express

Nos.

(cont’d)Circular numbers/titles (cont’d) Remarks (cont’d)

30 Caishui [2014] No. 55 (“Circular 55”),

i.e., Supplementary notice regarding

issues related to the preferential CIT

treatment for public infrastructure

projects

Circular 55 clarifies issues related to the preferential

CIT treatment for public infrastructure projects on top

of current regulations. (Please refer to CTIE2014030

for details of Circular 55.)

31 Caishui [2013] No. 4 (“Circular 4”),

i.e., Notice regarding issues related to

the implementation of tax policies for

the development of the western region

in Ganzhou

From 1 January 2012 to 31 December 2020,

enterprises that are established in Ganzhou and

engage in encouraged industries are subject to CIT at a

reduced rate of 15%. (Please refer to CTIE2013004 for

details of Circular 4.)

32 Caishui [2012] No. 10 (“Circular 10”),

i.e., Notice regarding certain issues

related to the preferential CIT

treatment for key public infrastructure

projects, environmental protection

projects and energy and water

conservation projects

Circular 10 clarifies issues related to the preferential

CIT treatment for key public infrastructure projects,

environmental protection projects and energy and

water conservation projects. (Please refer to

CTIE2012004 for details of Circular 10.)

33 Caishui [2011] No. 112 (“Circular

112”), i.e., Notice regarding the

preferential tax policies for the two

special economic development zones

in Kashgar and Horgos

Circular 112 introduces five-year CIT exemption for

qualifying enterprises during the period from 1

January 2010 to 31 December 2020

34 Caishui [2011] No. 58 (“Circular 58”),

i.e., Notice regarding the

implementation of tax policies for the

development of the western region

Circular 58 introduces the implementation policies of

tax policies for the development of the western region.

(Please refer to CTIE2011023 for details of Circular

58.)

35 Caishui [2011] No. 53 (“Circular 53”),

i.e., Notice regarding preferential CIT

policies for newly established

enterprises in financially strained

regions of Xinjiang

From 1 January 2010 to 31 December 2020, the

newly established enterprises in financially strained

regions of Xinjiang engaging in the industries listed in

the Catalog of Key Industries in Financially Strained

Regions of Xinjiang are entitled to a tax holiday of two-

year CIT exemption followed by three-year 50%

reduction of CIT from their first income-generating

year. (Please refer to CTIE2011021 for details of

Circular 53.)

36 Caishui [2011] No. 26 (“Circular 26”),

i.e., Supplementary notice regarding

the scope of agricultural products

preliminary processing that qualified

for preferential CIT treatment

Circular 26 further clarifies the scope of preliminary

processed agricultural products that are eligible for

preferential CIT treatment. (Please refer to

CTIE2011017 for details of Circular 26.)

37 Caishui [2010] No. 45 (“Circular 45”),

i.e., Supplementary notice regarding

issues related to the deduction of

charitable donation for Corporate and

Individual Income Tax purposes

Circular 45 provides details on deduction of charitable

donation for Corporate and Individual Income Tax

purposes. (Contents regarding qualification of

charitable organizations has been revoked. Please

refer to CTIE2010028 for details of Circular 45.)

38 Caishui [2009] No. 166 (“Circular

166”), i.e., Environmental Protection

and Energy and Water Conservation

Projects Qualifying for Preferential CIT

Treatment Catalog (Trial)

Circular 166 launches the scope of environmental

protection and energy and water conservation projects

that are eligible for a six-year tax holiday, i.e., three-

year CIT exemption followed by another three-year

50% CIT reduction commencing from the first income-

generating year from qualifying energy and water

conservation projects. (Please refer to CTIE2010002

for details of Circular 166.)

6China Tax & Investment Express

Nos.

(cont’d)Circular numbers/titles (cont’d) Remarks (cont’d)

39 Caishui [2009] No. 124 (“Circular

124”), i.e., Notice regarding the

deductibility of charitable donations

made through public-welfare social

organizations for Corporate and

Individual Income Tax purposes

Circular 124 lists out certain relevant issues, such as

criteria for qualifying public-welfare social

organizations. (Please refer to CTIE2009038 for

details of Circular 124.)

40 Caishui [2008] No. 160 (“Circular

160”), i.e., Notice regarding CIT

deduction for charitable donations

Circular 160 lists out certain relevant issues, such as

criteria for qualifying charitable social organizations.

(Certain contents of Circular 160 has been revoked.)

41 Caishui [2008] No. 149 (“Circular

149”), i.e., Notice regarding the

launch of the scope of preliminarily

processed agricultural products that

eligible for preferential CIT treatments

Circular 149 launches the scope of certain preliminarily

processed agricultural products that are eligible for

preferential CIT treatments. (Certain contents of

Circular 149 has been revoked.)

42 Caishui [2008] No. 116 (“Circular

116”), i.e., Notice regarding the

Catalogue of Public Infrastructure

Projects Qualified for Preferential CIT

Treatment (2008 edition)

Circular 116 launches the Catalogue of Public

Infrastructure Projects Qualified for Preferential CIT

Treatment (2008 edition) which became effective on 1

January 2008. (Please refer to China Tax & Investment

News Issue No. 2008019 for details of Circular 116.)

43 Caishui [2010] No. 96, i.e., Notice

regarding the official reply in respect

of the Individual Income Tax (IIT)

treatment for income derived from

farming, fish breeding, poultry raising

and fishing by investors of sole

proprietorship enterprises and

partnerships

Income derived from farming, fish breeding, poultry

raising and fishing by investors of sole proprietorship

enterprises and partnerships are temporarily exempt

from IIT.

44 Caishui [2004] No. 30, i.e., Notice

regarding IIT issues for the pilot

locations implementing the reform of

rural taxes and administrative charges

During the pilot, income derived from farming, fish

breeding, poultry raising and fishing (which were

previously subject to agricultural tax or livestocks tax)

by individuals are temporarily exempt from IIT.

45 Caishui [2017] No. 55 (“Circular 55”),

i.e., Notice regarding the tax policies

for the reform of rural collective

property rights

Circular 55 introduces certain Deed Tax (DT) and SD

exemption policies in this regard.

46 Caishui [2016] No. 19 (“Circular 19”),

i.e., Notice regarding the continuation

of preferential tax policies on rural

drinking water safety projects

Circular 19 provides for DT, SD, Real Estate Tax (RET),

VAT exemption as well as the CIT tax holiday in this

regard. (Please refer to CTIE2016011 for details of

Circular 19.)

47 Caishui [2016] No. 1 (“Caishui Circular

1”), i.e., Notice regarding the

preferential RET, and Urban Land

Usage Tax (ULUT) treatments for

agricultural wholesale markets and

farm markets

Caishui Circular 1 provides for RET and ULUT

exemption in this regard.

48 Caishui [2004] No. 66 (“Circular 66”),

i.e., Notice regarding the Vehicle

Purchasing Tax (VPT) exemption for

agricultural tricycles

Circular 66 provides for VPT exemption for certain

types of agricultural tricycles.

7China Tax & Investment Express

As indicated in the above table, certain contents of the listed circulars have already been further adjusted by some subsequent circulars. For accuracy, taxpayers should refer to the most updated versions. If in doubt, consultations from tax professionals are always recommended.

You can click this link to access full content of Circular 131:http://mof.hainan.gov.cn/czt/zwxx/zcfg/zcfb/201811/t20181115_2932697.html

► Notice regarding the commencement of national university science parks’ application for tax exemptions

for year 2017 (Guokequhan [2018] No. 1)

Synopsis

According to Caishui [2016] No. 98 (“Circular 98”, i.e., Notice regarding the tax policy for national university

science parks), qualifying national university science parks are eligible for preferential tax policies as follows:

► From 1 January 2016 to 31 December 2018, real estates and lands used by qualifying national university

science parks or rented, provided for free to their incubated enterprises shall be exempt from RET and

ULUT.

► During the VAT pilot, income derived by qualifying university science parks from leasing business premises

to incubated enterprises and provision of incubation services shall be exempt from VAT.

► Income derived by national university science parks with status of non-for-profit organizations shall enjoy

preferential CIT treatments for non-for-profit organizations according to the prevailing CIT law and its

implementation rules.

Based on Circular 98, the relevant departments of the Ministry of Education (MOE), and Ministry of Science

and Technology (MOST) jointly released Guokequhan [2018] No. 1 (“Circular 1”) on 25 October 2018

regarding the commencement of national university science parks’ application for tax exemption for year 2017.

According to Circular 1, a national university technology park that would like to apply for the tax exemption

should complete the application form (Attachment I of Circular 1) and submit the same with the relevant

supporting documents to the local competent departments under the MOE and MOST (hereinafter referred to

as the “local competent departments”). Upon receiving the application documents, the local competent

departments should review and conclude whether the applicant is qualified for the tax exemption. The

application forms and recognition forms for the qualifying applicants shall be summarized and submitted to the

relevant departments of the MOE and MOST by 25 November 2018.

The relevant departments of the MOE and MOST shall then further confirm on the list of qualifying applicants

and perform review on a random basis.

Our observation

On 1 November 2018, the MOF, SAT, MOE and MOST jointly released Caishui [2018] No. 120 (“Circular 120”)

which further continues the tax exemption policies as prescribed in Circular 98, expands the scope of taxpayers

that are eligible for tax exemption, and specifies the transition arrangements.

According to Circular 120, national university science parks that have been recognized before 31 December

2018 shall apply the tax exemption as prescribed in Circular 120 from 1 January 2019. (Please refer to

CTIE2018044 for details of Circular 120.)

You can click this link to access the full content of Circular 1:

http://www.most.gov.cn/mostinfo/xinxifenlei/fgzc/gfxwj/gfxwj2018/201811/t20181114_142916.htm

You can click this link to access the full content of Circular 98:

http://www.chinatax.gov.cn/n810341/n810755/c2275040/content.html

You can click this link to access the full content of Circular 120:

http://www.chinatax.gov.cn/n810341/n810755/c3855604/content.html

8China Tax & Investment Express

► Public notice (PN) regarding specific measures of the business registration reform for the transportation industry (MOT PN [2018] No. 76)

Synopsis

On 27 September 2018, the State Council released Guofa [2018] No. 35 (“Circular 35”) to set out 106 administrative approval items that shall be removed, changed as items subject to record filing, simplified, or improved under the business registration reform.

Accordingly, the Ministry of Transport (MOT) released MOT PN [2018] No. 76 (“PN 76”) on 7 November 2018 to specify the detailed implementation for 12 items related to the transportation industry.

According to PN 76, the administrative approval required for foreign investment of international shipping and relevant auxiliary services (including international shipping management) shall be removed. Going forward, the local authorities under the MOT shall strengthen the record filing administration in this regard.

Relevant businesses should refer to PN 76 for details.

You can click this link to access the full content of Circular 76: http://xxgk.mot.gov.cn/jigou/fgs/201811/t20181109_3126793.html

You can click this link to access the full content of Circular 35:http://www.gov.cn/zhengce/content/2018-10/10/content_5329182.htm

► Notice regarding the “Administrative Measures for Licensing of Courier Service Operations” (MOT Order [2018] No. 23)

Synopsis

On 22 October 2018, the revised Administrative Measures for Licensing of Courier Service Operations (hereinafter referred to as the “revised Administrative Measures”) was announced by the MOT via MOT Order [2018] No. 23. The revised Administrative Measures shall become effective on 1 January 2019.

Key features of the revised Administrative Measures are as follow:

Clarified detailed criteria for obtaining license for courier service operations

The revised Administrative Measures relax requirements on qualification of personnel and the required ratio. For applicants that shall apply for license of international courier services but fail to meet the required criteria of customs declaration data, processing venues, facilities, equipment, etc. at the time of the application, a grace period (not more than six months) may be provided for them to meet the requirements.

Improved application flows for the license of courier service operations

The revised Administrative Measures provide details regarding the procedures on application/acceptance of application, verification/decision making, alteration/extension, and de-registration/revocation, etc. For example, the revised Administrative Measures further simplify the record filing procedures for branch offices and reiterated that business licenses are not required for opening fixed premises that offer mail collection or delivery services in designated areas.

Supervision measures

According to the revised Administrative Measures, enterprises engaging in courier service operations are not required to be inspected annually but should submit their annual reports by 30 April of the following year.

In addition, absorption merger, spin-off and establishment of branch offices, etc. of enterprises engaging in courier service operations shall be subject to the record filing administration.

Relevant enterprises should ready the revised Administrative Measures for details.

You can click this link to access full content of the revised Administrative Measures:http://xxgk.mot.gov.cn/jigou/fgs/201811/t20181109_3126873.html

Business circulars

9China Tax & Investment Express

► PN regarding certain matters related to the real-time access to the raw data of payments on cross-border e-commerce enterprises’ platforms (GAC PN [2018] No. 165)

Synopsis

In order to further regulate the supervision of retail import business of cross-border e-commerce, the General

Administration of Customs (GAC) released GAC PN [2018] No. 165 (“PN 165”) on 8 November 2018 to specify

matters regarding customs’ real-time access to the raw data of payments on cross-border e-commerce

enterprises’ platforms according to the relevant provisions of the “E-commerce Law of the People’s Republic of

China”. The details are as follows:

► Cross-border e-commerce platform enterprises that carry on retail import business of cross-border e-

commerce shall open the relevant raw data to the Customs for inspection.

► The above-mentioned open data includes order number, commodity name, transaction amount, currency

system, payees’ information, link address of product display, payment transaction serial number, auditing

agency, transaction time, and other data deemed necessary by Customs.

► The scheme of the unified information system for real-time access to retail import data of cross-border e-

commerce is detailed in the attachment of PN 165.

PN 165 shall become effective on 1 January 2019. Companies engaging in cross-border e-commerce should

pay particular attention, as the above provisions mean for a tighter monitoring of relevant business activities;

compliance matters (e.g. tax) that derived from such activities could be subject to scrutiny. Leveraging data

collected would be a trend and more transparency would be revealed among different authorities, companies

should be cautious about this move.

You can click this link to access the full content of PN 165:

http://www.customs.gov.cn/customs/302249/302266/302269/2087562/index.html

You can click this link to access the full content of the E-commerce Law of the People’s Republic of China:

http://www.npc.gov.cn/npc/xinwen/2018-08/31/content_2060172.htm

► Notice regarding tax policies for the 7th Military World Games (Caishui [2018] No. 119)

http://www.chinatax.gov.cn/n810341/n810755/c3883523/content.html

► Notice regarding implementing business registration reform and optimizing access services of the

accounting industry (Caibanhui[2018] No. 30)

http://www.gov.cn/xinwen/2018-11/10/content_5339061.htm

► Notice regarding the “Memorandum of Understanding on Imposing Joint Disciplinary Measures Against

Entities in the Scientific Research Field Acting in Bad Faith” (Fagaicaijin [2018] No. 1600)

http://www.ndrc.gov.cn/gzdt/201811/t20181109_919224.html

► Decision on the revision of certain regulations (MOFCOM Order [2018] No. 7)

http://www.mofcom.gov.cn/article/b/fwzl/201811/20181102804608.shtml

► Notice regarding the public opinion consultation on the “Administrative Regulations on Enterprise Name

Registration (Draft for Examination and Approval)”

http://www.chinalaw.gov.cn/art/2018/11/9/art_33_209563.html

Other tax, business and customs related circulars recently announced by central government authorities:

Customs circular

10China Tax & Investment Express

► Notice regarding the public opinion consultation on the “Regulations of Self-employed Industrial and Commercial Households (Revised Discussion Draft)”www.chinalaw.gov.cn/art/2018/11/9/art_33_209562.html

► PN regarding expanding the pilot scope of market procurement trade (GAC PN [2018] No. 167)http://www.customs.gov.cn/customs/302249/302266/302269/2092733/index.html

► PN regarding matters related to the pilot run of the “Customs-Railway Operators Partnership for Safe

and Express Customs Clearance for the China-EU Railway” between China and Kazakhstan (GAC PN

[2018] No. 166)

www.customs.gov.cn/customs/302249/302266/302269/2092153/index.html

► PN regarding certain matters related to the evacuation and distribution of import cargoes (GAC PN

[2018] no.168)

http://www.customs.gov.cn/customs/302249/302266/302269/2095065/index.html

11China Tax & Investment Express

Contact usFor more information, please contact your usual EY contact or one of the following of EY’s China tax leaders.

• Martin Ngai (Beijing) +86 10 5815 3231 martin.ngai@cn.ey.com

• Fisher Tian (Tianjin) +86 22 5819 3520fisher.tian@cn.ey.com

Office Tax Leaders

• Samuel Yan (Dalian/Shenyang)+86 10 5815 3226samuel.yan@cn.ey.com

Service Line Tax Leaders

• Travis Qiu (Transfer Pricing)+86 21 2228 2941travis.qiu@cn.ey.com

• Paul Wen (People AdvisoryServices)+852 2629 3876paul.wen@hk.ey.com

• Samuel Yan (Global Compliance & Reporting)

+86 10 5815 3226samuel.yan@cn.ey.com

• Becky Lai (Tax Policy)+852 2629 3188becky.lai@hk.ey.com

• Jesse Lv (Transaction Tax)+86 21 2228 2798Jesse.lv@cn.ey.com

• Jane Hui +852 2629 3836jane.hui@hk.ey.com

Author – China Tax Center

Greater China Tax Leader

• Lucy Wang (Qingdao) +86 10 5815 3809lucy-c.wang@cn.ey.com

• Vickie Tan (Shanghai)+86 21 2228 2648vickie.tan@cn.ey.com

• Audrie Xia (Suzhou)+86 21 2228 2886audrie.xia@cn.ey.com

• Raymond Zhu (Wuhan)+86 21 2228 2860raymond.zhu@cn.ey.com

• Jean Li (Xiamen)+86 755 2238 5600 jean-n.li@cn.ey.com

• Rio Chan (Guangzhou/Changsha) +86 20 2881 2878rio.chan@cn.ey.com

• Chuan Shi (Chengdu) +86 21 2228 4306chuan.shi@cn.ey.com

• Clement Yuen (Shenzhen) +86 755 2502 8280clement.yuen@cn.ey.com

• Joanne Su (Xi’an)+86 10 5815 3380joanne.su@cn.ey.com

• Patricia Xia (Hangzhou)+86 21 2228 2878patricia.xia@cn.ey.com

• Andrew Chen (Nanjing)+86 21 2228 2385andrew-jp.chen@cn.ey.com

• David Chan (Hong Kong)+852 2629 3228david.chan@hk.ey.com

• Heidi Liu (Taipei) +886 2275 78888heidi.Liu@tw.ey.com

• Kenneth Leung (Indirect Tax) +86 10 5815 3808 kenneth.leung@cn.ey.com

Sector Leaders

• Catherine Li (Financial Services) +86 10 5815 3890catherine.li@cn.ey.com

• Alan Lan (Energy & Resources)+86 10 5815 3389 alan.lan@cn.ey.com

• Martin Ngai (Technology, Media,Telecommunications) +86 10 5815 3231 martin.ngai@cn.ey.com

• Vickie Tan (Life Science)+86 21 2228 2648vickie.tan@cn.ey.com

• Gary Chan (Real Estate) +86 10 5815 2816 gary.chan@cn.ey.com

• Audrie Xia (Consumer Products)+86 21 2228 2886audrie.xia@cn.ey.com

• Walter Tong (Automotive & Transportation)+86 21 2228 6888walter.tong@cn.ey.com

• Raymond Zhu (Government & Public Sector)+86 21 2228 2860raymond.zhu@cn.ey.com

• Henry Chan +86 10 5815 3397 henry.chan@cn.ey.com

• Andrew Choy (International Tax)+86 10 5815 3230andrew.choy@cn.ey.com

12China Tax & Investment Express

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