Effective 1 December 2024, China’s State Administration of Taxation (SAT) has implemented fully digitalised e-invoices, or e-fapiao, nationwide. This initiative simplifies invoicing processes, replacing traditional paper-based invoices with a streamlined digital format featuring 17 key elements, including a unique 20-digit identification code. Legally equivalent to paper invoices, the e-invoice reduces administrative burden and enhances tax compliance. The move underscores China’s commitment to modernizing tax administration while promoting efficiency and standardization for businesses and consumers. By eliminating the need for duplicate copies, the digital system improves usability and supports the broader digital transformation of the country’s financial ecosystem.

On 15 November 2024, China announced significant changes to its export tax rebate policies, effective 1 December 2024. The elimination of rebates for aluminium, copper, and certain biofuels, along with a reduction in rebate rates for batteries and refined oil products, is set to impact businesses across key sectors. This shift aims to address the financial burdens faced by exporters under the current VAT framework. Companies must now evaluate how these adjustments affect their operations and develop strategies to navigate the evolving landscape. Discover how these changes could reshape the export market and what it means for your business.

Between December 2023 and March 2024, the HKSAR Government conducted a consultation on the Global Anti-Base Erosion (“GloBE”) Rules and the Hong Kong Minimum Top-up Tax (“HKMTT”). Upon the conclusion of the consultation, Hong Kong’s Financial Services and the Treasury Bureau, in collaboration with the Inland Revenue Department, has recently published a Legislative Council (“LegCo”) Paper. The document recapitulates the input gathered from various stakeholders and presents the government’s feedback based on the findings.

In an effort to enhance the China Import and Export Fair, commonly known as the Canton Fair, a notice titled “Notice on the Continuation of Tax Incentives for Imported Goods Sold During the Exhibition Period” has been issued. It extends the tax incentives for 2024 to 2025, maintaining the same benefits as in 2023. These incentives exempt eligible imported goods from import tariffs, value-added tax, and consumption tax during the fair. This initiative aims to bolster trade, ensure compliance with regulations, and foster international business relationships by supporting a favorable trading environment at the Canton Fair.

The State Administration of Taxation in China has launched the 2024 “Spring Rain Nurtures Seedlings” action plan, introducing 12 pivotal measures to enhance the growth and resilience of small and micro enterprises. This initiative focuses on sectors like technology innovation and manufacturing, providing comprehensive policy guidance and support throughout the business lifecycle. The plan emphasizes structural tax reductions, fee simplifications, and tailored support for small cross-border enterprises. It addresses critical aspects such as tax declarations, business model adjustments, and trade method shifts. With a strong commitment to ongoing monitoring and adaptation, the initiative aims to foster a conducive environment for sustainable growth and competitiveness in the global market.

This summary provides an overview of the tax rates for profits tax, salaries tax, and property tax in Hong Kong for the assessment years 2024-25. It serves as a quick reference for individuals and businesses to understand their tax obligations in the region. Staying informed about these rates is important for effective tax planning and compliance in Hong Kong’s dynamic economic environment.

On 17 November 2023, Hong Kong’s Special Administrative Region Government (“SAR Government”) gazetted the Inland Revenue (Amendment) (Aircraft Leasing Tax Concessions) Bill 2023 (“Bill”). The purpose of the Bill is to enhance the aircraft leasing preferential tax regime originally introduced in 2017. This article will provide a summary of the key legislative changes to the aircraft leasing preferential tax regime. For information about other tax incentives in Hong Kong, consult our Complete Guide to Hong Kong Tax.

Explore tax incentives in China with this comprehensive guide on Corporate Income Tax (CIT) policies for 2022. Learn about preferential treatments for Small and Low-profit Enterprises, SMEs, TSMEs, HNTEs, and R&D expenses, as well as regional CIT incentives. Don’t miss the 31 May 2023 deadline for annual CIT filing.