The China Tax Policy Review and Outlook is a series of annual publications designed by PwC’s China National Tax Policy Services to review key tax policy developments in China and discuss the trends from a forward-looking perspective. This 2017 China Tax Policy Review and 2018 Outlook is the third issue in the series.
2017 ended with stable economic development in China. Further fiscal and taxation reforms were also written into the 13th Five-Year Plan. China’s Ministry of Finance (MOF), State Administration of Taxation (SAT) and other ministries released a series of tax policies to support the country’s progressive and steady economic growth and promote its innovation-driven development strategy. The reforms are also meant to help taxpayers, explores the tax administration and service for large businesses so as to progressively formulate a well-functioned administrative system in China. Globally, China played a crucial role in the reform of the international tax administration as well, proactively localising the recommendations of the Base Erosion and Profit Shifting (BEPS) Action Plan.
Some highlights from the 2017 China Tax Policy Review and 2018 Outlook:
Looking at 2018, we believe that China will continue to release some eye-catching tax policies to maintain the economy’s medium-to-high growth, fulfil the State’s innovation-driven development strategy and other objectives under the 13th Five-Year Plan. On 5 March 2018, Premier of the State Council, Li Keqiang, delivered the Report on the Work of the Government at the first session of the 13th National People’s Congress. The Report clarified China’s fiscal and taxation tasks for the new year. It stresses that China will further reduce the taxes and non-tax burden of enterprises and individuals by over RMB800 billion and RMB300 billion respectively. At the same time, the National People’s Congress intends to fully implement the statutory taxation principle by 2020, and replace all the current tax regulations with law. In that respect, the Chinese fiscal and tax authorities need to speed that up in 2018. On top of the domestic agenda, China also needs to face global challenges, including the uncertainties of the US tax reform.
Lead Partner, China Outbound Investment Service; China North Tax Leader, PwC China
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