China
China Tax Update: February 2025 Edition
The State Taxation Administration’s Announcement No. 4 of 2025 revises the “China Tax Residency Certificate,” effective April 1, 2025. It allows online applications for both individuals and enterprises, streamlining the process and enhancing tax administration efficiency.
The State Taxation Administration (STA) has issued the STA Announcement No. 4 of 2025, introducing comprehensive revisions and clarifications to application of the “China Tax Residency Certificate” (hereinafter referred to as the “Tax Residency Certificate”). Effective April 1, 2025, this new announcement replaces the previous guidelines set out in the STA Announcement [2016] No.40 and the STA Announcement [2019] No.17, marking a significant update in tax administration practice.
Under the revised framework, both enterprises and individuals are now eligible to apply for a Tax Residency Certificate for any calendar year in which they qualify as Chinese tax residents. Applications can be processed entirely online through the full digital workflow, although traditional in-person services at local tax offices remain available. Special provisions have been established for certain entities that do not have independent legal status—such as domestic branches of Chinese resident enterprises, individual industrial and commercial households, sole proprietorships, and partnership enterprises—which must now apply through their respective head offices or principal stakeholders.
Once a complete application is received, the tax authority is obliged to process it within seven working days or issue a written explanation if the application is denied. Applicants with special formatting requirements from counterpart tax authorities should submit a written explanation and sample format to facilitate compliance.
These updates, which include an expanded scope of application, a fully online processing system, updated certificate content, and shorter processing times, are designed to significantly enhance tax administration efficiency. Taxpayers are advised to review the new guidelines promptly to ensure compliance and to take full advantage of the streamlined procedures in managing cross-border tax matters.
In a move aimed at further enhancing the competitiveness of China’s high-tech industries, several government bodies—including the Ministry of Industry and Information Technology (MIIT), the Ministry of Finance (MOF), the General Administration of Customs (GAC), the STA, and the National Energy Administration (NEA)—have jointly revised the import tax policies for major technical equipment.
Effective March 1, 2025, these updates come with the release of new directories:
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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