Gradual removal of 'Non-administrative approval items' will bring both convenience and challenges to taxpayers
The Chinese State Council recently released the Decision Regarding Cancellation of Non-Administrative Approval Items (Guofa  No.27, hereinafter referred to as ‘Circular 27’) to abolish 49 non-administrative approval items. This is a further step to cut down the number of items requiring administrative approval over the past few years. Circular 27 stated clearly that the category of non-administrative approval shall no longer exist, which echoes Premier Li Keqiang’s statement in a national teleconference on the subject of ‘Streamline Administration, Delegate Power, Strengthen Regulation and Improve Services to Deepen Administrative Reform and Transform Government Functions’ (‘Teleconference’).
In this News Flash, we will walk you through the notable results achieved by the Chinese government in streamlining administration in light of the cancellation of administrative approval items over the past few years. We will also introduce some important tax-related non-administrative approval items that are cancelled by Circular 27 and share our observation as well. While the streamlining of administration brings convenience to taxpayers, they should pay more attention to the improvement in their capability to manage tax risks at the same time.
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