CHINA: An Introduction to Tax (PRC Firms)
2023年中国税制改革观察
A Preview of China's Tax System Reforms in 2023
税收立法进程 Tax Legislation Progress
自2013年以来，全面落实税收法定原则在中国逐步实行。截至目前，中国现行18个税种中已有12个税种制定了法律，个人所得税法也完成了重大修订，建立了综合与分类相结合税制，增加专项附加扣除项目，关税、城镇土地使用税、房产税3个税种立法工作正在稳步推进，消费税法和土地增值税法的征求意见稿已向社会公开。
Since 2013, the principle of statutory taxation has been gradually implemented in China. Till now, out of China's current 18 tax categories, 12 of them have enacted laws. The individual income tax law has also been significantly revised, comprehensive and classified system has been established, and special additional deduction items have been added. The legislation work on tariff, land use tax, real estate tax is progressing steadily. The exposure drafts of the consumption tax law and land value-added tax law have been open to the public.
2022年12月27日，备受瞩目的增值税法草案提请全国人大常委会首次审议，有望在2023年通过。需要关注的是，增值税法草案与现行增值税暂行条例相比有一些调整。例如，对于“境内发生应税交易”的判断引入“在境内消费”的概念，删除了“购买方在境内”的表述。在华企业宜密切关注相关税种的立法进程，分析制度差异对企业的影响，及时作出应对。
On 27 December 2022, upon the deliberation at the 38th session of the Standing Committee of the Thirteenth National People's Congress, the draft of Value-Added Tax Bill (the draft) has been published, requesting for public comments. Compared with the temporary regulation, the Draft has a lot of changes. For example, the rule of "taxable transaction occurrence within the territory" introduces the factor of "domestic consumption" and removes the factor of the buyer's location. Enterprises in China should pay close attention to the legislation process, analyse the impact of system differences, and make timely response.
税制改革展望
Outlook for Tax System Reforms
2023年，中国正在努力推进以共同富裕为目标的中国式现代化建设，打造全国统一大市场，这为进一步深化国家财税体制改革提出了更高要求。在此背景下，中国的税制改革将在四个方面向纵深推进，为在华企业优化营商环境产生深远影响。
In 2023, China strives to promote Chinese modernisation with the goal of common prosperity, and builds a unified national market. This puts forward higher requirements for further deepening the national tax system reforms. In this context, China's tax system reforms will be advanced in four aspects, which will have a far-reaching impact on optimising the business environment for enterprises in China.
第一是优化税收结构，增加直接税比重，降低间接税比重，强化税收中性，引导市场主体公平竞争。中国财政部公开披露的数据显示，2022年前三季度国内增值税收入33347亿元，同比下降33.4%；个人所得税收入11360亿元，同期增长9.1%，企业所得税收入36409亿元，同期增长2.1%。2023年这一趋势将会继续延续。
First, the tax structure will be optimised, increasing the proportion of direct taxes and reducing the proportion of indirect taxes. It strengthens tax neutrality and guides market entities to a fair competition. Data released by the Ministry of Finance of China shows that the domestic value-added tax revenue in the first three quarters of 2022 was CNY3334.7 billion, a year-on-year decrease of 33.4%. Individual income tax revenue was CNY1136 billion, representing an increase of 9.1% over the same period. Corporate income tax revenue was CNY3640.9 billion, an increase of 2.1% over the same period. This trend will continue in 2023.
第二是加大减税降费力度，结构性减税与普惠性减税并重。财政部、国家税务总局去年出台了《关于企业投入基础研究税收优惠政策的公告》、《关于加大支持科技创新税前扣除力度的公告》等政策，今年将继续重点支持高新技术企业研发投入、节能环保低碳产业和外贸新业态，出台鼓励外商投资和支持金融市场对外开放税收政策。与此同时，国家对中小微企业实施普惠性的减免税优惠政策，大规模推行增值税留抵退税。
Second, tax and fee reductions will increase, promoting both structural tax cuts and inclusive tax cuts. Last year, The Ministry of Finance and the State Taxation Administration issued the Announcement on Preferential Tax Policies for Enterprises' Investments in Basic Research, the Announcement on Increasing Pre-tax Deductions in Support of Scientific and Technological Innovation and other policies. In 2023, more new tax policies will be issued to support the R&D investment of high-tech enterprises, green industry and new forms of foreign trade. Meanwhile, inclusive tax deduction and exemption policies for small low-profit enterprises will continue to be implemented, and tax authorities are further accelerating the implementation progress of the refund of term-end excess input value-added tax credits.
第三是加快实现以数治税。中共中央办公厅、国务院办公厅印发的《关于进一步深化税收征管改革的意见》指出，要充分运用大数据、云计算、人工智能、移动互联网等现代信息技术，实现涉税数据信息汇聚联通，到2023年基本建成以“双随机、一公开”监管和“互联网+监管”为基本手段、以重点监管为补充、以“信用+风险”监管为基础的税务监管新体系，实现从“以票管税”向“以数治税”分类精准监管转变。
Third, the building of smart taxation will accelerate. Issued by the General Office of the CPC Central Committee and the General Office of the State Council, the Opinions on Further Deepening the Reform of Tax Collection Administration points out that by making full use of modern information technology, such as big data, cloud computing, artificial intelligence and mobile internet, it promotes the convergence and integration of internal and external tax-related data. By 2023, a new "credit plus risk"-based supervision system which features the basic approach of "random selection of cases and tax inspectors and timely result publications" as well as "internet plus supervision", supplemented by targeted supervision will be basically established, achieving the transition from "tax administration through invoices" to a data-driven, segmented and precise supervision.
第四是加强重点领域风险防控和监管，依法严厉打击涉税违法犯罪行为。2023年税务部门将对逃避税问题多发的行业、地区和人群，以及对隐瞒收入、虚列成本、转移利润以及利用“税收洼地”、“阴阳合同”和关联交易等逃避税行为，加强预防性制度建设，加大依法防控和监督检查力度，精准有效打击“假企业”虚开发票、“假出口”骗取退税、“假申报”骗取税费优惠等行为，保障国家税收安全。
Fourth, risk prevention, control and supervision in key areas will be enhanced, cracking down severely on tax crimes in accordance with the law. In 2023, random checking on industries, regions, and groups of people with frequent tax evasion and avoidance shall be properly increased according to the risk level. For activities such as revenue concealment, inflated cost, profit shifting, exploiting "low-tax or no-tax regions", "duplicate contracts" and related transactions, the building of preventive systems will be strengthened, and the prevention, control, supervision and inspection shall be enhanced in accordance with the law. Chinese tax authorities will accurately and effectively crack down on false issuance of invoices issued by "fake enterprises", refund frauds obtained through "false exports" and defrauding of tax and fee incentives obtained by "improper filings" to ensure taxation security of the country.
税法服务市场
Tax Legal Service Market
伴随中国税收立法进程不断推进和税制改革不断深化，税收法治化的营商环境也在不断优化，在华企业将拥有更加公开、公平、科学的税制环境，专业化和个性化的税法服务需求和市场也必将不断增长。在中国税制改革进程中，由于税收法定原则的逐步落实，税收规定的法律刚性和政策复杂性都在提高，税务部门执法能力不断加强，在华企业在税法遵从过程中与中国税务机关发生涉税争议的行政复议和诉讼案件数量也会增长。
With the continuous promotion of China's tax legislation process and the deepening of tax system reforms, the business environment with the legalisation of taxation is also constantly being optimised. Enterprises in China will have a more open, fair and scientific tax system environment. In the process of China's tax system reform, due to the gradual implementation of the tax statutory principle, the legal rigidity and policy complexity of tax regulations are increasing, and the law enforcement capabilities of the tax authorities are continuously strengthened. The requirements for tax legal services in China will continue to grow rapidly, asking for more personalisation and specialisation. Tax-related disputes between enterprises and tax authorities such as administrative reconsideration cases and administrative litigation cases will grow rapidly as well.
2022年9月22日，中国司法部公开披露了2021年全国行政复议行政诉讼案件统计数据数据。数据显示，2021年度中国行政机关共受理行政复议案件221672件，审结案件数量214240件，其中国家税务总局受理的涉税行政复议案件1875件。在审结的行政复议案件中，复议机关作出撤销决定和调解结案的案件数量占比为18.96%。2021年度中国法院共受理行政诉讼案件262481件，审结案件数量198603件，其中国家税务总局应诉案件1037件。在审结的行政诉讼案件中，法院做出撤销判决和调解结案的案件数量占比为7.17%。
On 22 September 2022, the Ministry of Justice of China released the Statistical Data of National Administrative Reconsideration and Litigation Cases in 2021. The data shows that 221672 administrative reconsideration cases were accepted and processed by administrative authorities in 2021, in which 214240 cases were concluded. The State Taxation Administration accepted 1875 cases. Among the administrative reconsideration cases concluded, the number of cases settled by cancellation and conciliation accounted for 18.96%. The data also shows that Chinese courts accepted 262481 administrative litigation cases and concluded 198603 cases in 2021. The State Taxation Administration responded to 1037 cases. Among the concluded litigation cases, the number of cases settled by cancellation and conciliation accounted for 7.17%.
在中国，税务律师行业正在快速发展，税务律师数量也在增长。在华企业需要在税务风险管理、税务稽查应对等方面借助中国本土化的税务律师的专业力量，应对复杂的政策环境，提升税法遵从的市场竞争力，实现企业价值最大化。此外，在华企业要审慎应对涉税争议，寻求税务律师的专业支持，妥善解决涉税争议，积极运用行政复议、行政诉讼等法律救济途径维护自身的合法权益。
In China, the tax lawyer industry is booming and the number of tax lawyers is increasing. In the progress of taxation legislation in China, Chinese tax lawyers are able to guide enterprises with tax risk management, deal with tax inspection and so on. Tax compliance is an important path for enterprise value maximisation, which can improve market competitiveness and deal with various potential risks. When there are tax disputes, enterprises in China shall actively seek the help of local tax lawyers and use legal remedies, such as administrative reconsideration and litigation, to safeguard their legitimate rights and interests.