Recent Important Regulation Highlight

Recently, the Chinese Supreme People's Court and the Chinese Supreme People's Procuratorate jointly issued the "Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases of Endangering Tax Collection and Administration". For the first time, the signing of duplicate contracts was included as an act of tax evasion. The Notice has also updated and clarified the provisions on other tax offences, such as false invoicing.

The General Office of the Shanghai Municipal Government has recently issued the "Measures to Reduce the Burden on Enterprises and Support the Development of SMEs in Shanghai" with an effective period from 23 March 2024 to 31 December 2024. The Measures introduce a series of preferential policies on five key areas:

These include a temporary reduction of the employer contribution rate for basic medical insurance for employees by one percent during the period.

Recently, the Shanghai Taxation Bureau issued the Notice on Matters Relating to the Pilot Preferential Policies on Stamp Duty for Offshore Trade in Shanghai FTZ and Lingang New Area. The Notice provides that the purchase and sale contracts entered into by enterprises registered in the Shanghai FTZ and Lingang New Area for the purpose of conducting offshore resale business are exempt from stamp duty for the taxpayers entering into the contracts. The tax exemption can be assessed and applied by the enterprises themselves, but the relevant information should be kept for future inspection. Taxpayers are responsible for the authenticity, completeness and legality of the information retained.