June 2024 / China

On 7 June 2024, Shanghai Municipal Tax Bureau and Shanghai Municipal Finance Bureau compiled the Guidance on Major Tax Preferential Policies in Shanghai to Support Scientific and Technological Innovation in Shanghai. It provides a menu and one-stop services for taxpayers and promotes the full utilization of preferential policies for taxes and fees.

The Guidance:https://shanghai.chinatax.gov.cn/zcfw/zcjd/202406/t472244.html

In accordance with Circular Caishui [2022] No. 3, effective from 1 January 2021 until 31 December 2025, individuals working in the Hengqin Guangdong-Macau In-depth Cooperation Zone (“Hengqin Zone”) who meet eligibility criteria are entitled to preferential IIT treatments. These measures aim to attract skilled talent to the region and support the economic integration of Macau and the Hengqin Zone.

On 7 June 2024, the tax authority of the Hengqin zone issued the 2023 Filing Guide for Macau residents preferential IIT treatments in the Hengqin Zone to assist eligible taxpayers in understanding and applying for these benefits.

2023 Filing Guide：https://guangdong.chinatax.gov.cn/gdsw/zhhqsw_tzgg/2024-06/07/content_929eb312769e429f8d86b5d82ab3c2d7.shtml

On 30 May 2024, the General Office of the State Taxation Administration and the General Office of the All-China Federation of Industry and Commerce jointly issued the 2024 Special Action Plan on Tax Measures for Supporting the Development of Micro and Small Enterprises (“Action Plan”), which outlines twelve strategic measures aimed at enhancing support for micro and small enterprises (“MSEs”).

Key initiatives of the action plan:

• Targeted policy delivery: the plan details a strategy to tailor tax and fee incentives more precisely based on the specific characteristics such as type, operational scale, and industry sector of the businesses.
• Focus on key sectors: there will be an increased emphasis on providing policy guidance to MSEs within the sci-tech innovation and manufacturing sectors, recognizing their critical role in economic growth.
• Support for cross-border MSEs: the Action Plan proposes customized support measures for MSEs engaging in cross-border activities, tailored to their needs in the various stages of growth and development.
• Collaborative dispute resolution: it encourages multi-departmental cooperation to enhance mechanisms for resolving tax and fee disputes, aiming to streamline and diversify the resolution process.

Action Plan: http://fgk.chinatax.gov.cn/zcfgk/c102424/c5232277/content.html