China: Tax update | March 2022 (Q1)

In brief

In this March issue of China Tax Update, we will discuss the following tax developments in China:

  • Tax proposals in the 2022 government work report
  • Input VAT refund policy for qualified enterprises
  • Notice regarding formulating the 2022 list of integrated circuit enterprises/projects and software enterprises eligible for the preferential tax policies
  • VAT exemption and relief measures
  • Individual income tax additional special deduction for nursing expenses for infants and toddlers

Contents

Tax proposals in the 2022 government work report

On 5 March 2022, China's Premier Li Keqiang delivered a government work report at the opening meeting of the fifth session of the 13th National People's Congress ("Government Work Report"),[1] which highlights the government's tax policy priorities for 2022: (i) implement tax and fee cuts for small and medium enterprises (SMEs); (ii) encourage R&D activities; and (3) support enterprises in the manufacturing industries.

Of particular importance to multinational companies (MNCs), the Government Work Report proposes to refine the excess input value-added tax (VAT) refund policy, increase the R&D super deduction ratio, and implement the accelerated depreciation policy for qualified enterprises.

Click here to access the full alert.

 

Latest update: China: Tax Update - 2021 - Baker McKenzie InsightPlus


 

 

© 2022 Baker & McKenzie FenXun (FTZ) Joint Operation Office. All rights reserved. Baker & McKenzie FenXun (FTZ) Joint Operation Office is a joint operation between Baker & McKenzie LLP, and FenXun Partners, approved by the Shanghai Justice Bureau. In accordance with the common terminology used in professional service organisations, reference to a "partner" means a person who is a partner, or equivalent, in such a law firm. This may qualify as “Attorney Advertising” requiring notice in some jurisdictions. Prior results do not guarantee a similar outcome. 

 


 


Copyright © 2024 Baker & McKenzie. All rights reserved. Ownership: This documentation and content (Content) is a proprietary resource owned exclusively by Baker McKenzie (meaning Baker & McKenzie International and its member firms). The Content is protected under international copyright conventions. Use of this Content does not of itself create a contractual relationship, nor any attorney/client relationship, between Baker McKenzie and any person. Non-reliance and exclusion: All Content is for informational purposes only and may not reflect the most current legal and regulatory developments. All summaries of the laws, regulations and practice are subject to change. The Content is not offered as legal or professional advice for any specific matter. It is not intended to be a substitute for reference to (and compliance with) the detailed provisions of applicable laws, rules, regulations or forms. Legal advice should always be sought before taking any action or refraining from taking any action based on any Content. Baker McKenzie and the editors and the contributing authors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The Content may contain links to external websites and external websites may link to the Content. Baker McKenzie is not responsible for the content or operation of any such external sites and disclaims all liability, howsoever occurring, in respect of the content or operation of any such external websites. Attorney Advertising: This Content may qualify as “Attorney Advertising” requiring notice in some jurisdictions. To the extent that this Content may qualify as Attorney Advertising, PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME. Reproduction: Reproduction of reasonable portions of the Content is permitted provided that (i) such reproductions are made available free of charge and for non-commercial purposes, (ii) such reproductions are properly attributed to Baker McKenzie, (iii) the portion of the Content being reproduced is not altered or made available in a manner that modifies the Content or presents the Content being reproduced in a false light and (iv) notice is made to the disclaimers included on the Content. The permission to re-copy does not allow for incorporation of any substantial portion of the Content in any work or publication, whether in hard copy, electronic or any other form or for commercial purposes.