Chinese Tax Regulation Update | August 2023

The State Administration of Taxation (“SAT”), together with other governmental authorities at central level, has promulgated a series of regulations that extend the validity period of various preferential tax policies for the following years till 31 December 2027 in August. We have picked below certain renewed policies that may be relevant to the companies’ routine business. Digest of renewal of preferential Individual Income Tax (“IIT”) policies regarding certain benefits granted to foreigners (i.e., Announcement 29 jointly released by the Ministry of Finance (“MOF”) and the SAT) and annual bonus of PRC tax resident individuals (i.e., Announcement 29 jointly released by the MOF and the SAT) has already been released in a separate newsletter “Extension of Preferential Individual Income Tax Policies on Benefits Granted to Foreigners and Annual Bonus of PRC Tax Residents” which we already distributed on 31 August 2023. Therefore, no more introduction of Announcement 29 and Announcement 30 is mentioned in the table below.

In addition, we also include in this regulation update the new policy of increasing the pre-IIT deductible amounts of certain special extra deduction items (“SEDIs”).

The latest development in China Tax Regulation mainly includes:

• Announcement [2023] No. 35 jointly released by the MOF and the SAT

• Announcement [2023] No. 17 jointly released by the MOF and the SAT

• Cai Shui [2023] No. 34

• Announcement [2023] No. 19 jointly released by the MOF and the SAT

• Announcement [2023] No. 25 jointly released by the MOF and the SAT

• Guo Fa [2023] No. 13, SAT Announcement [2023] No. 14

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