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 including impacts on Chinese enterprises from a forward-looking perspective. This 2019 China Tax Policy Review and 2020 Outlook is the fifth issue in the series.
In 2019, China’s economy has kept sailing through waves and forging ahead. While the global economic slowdown, China-US trade tensions and other factors have exerted pressure on China’s economic growth. To boost the economic development and maintain stable growth, China continues to expand high-standard opening-up, propel innovation and reform, upgrade industries as well as optimise business environment in 2019. Meanwhile, China reduced taxes and fees on a larger scale, and actively pushed forward the process of legislation on taxation. As the era of BEPS2.0 is sneaking in to global reach, China, a major player in the digital economy, is likely to respond quickly and take timely action.
Some highlights from the 2019 China Tax Policy Review and 2020 Outlook:
Farewell to 2019 and embrace 2020. It is foreseeable that a number of tax laws are expected to be settled in 2020 with the acceleration of China's tax legislation. However, the pace of tax reform will not stop by then. Further progress of taxation policies, changes in collection and administration, and innovation of tax services are expected. At the beginning of 2020, the Coronavirus disease has swept across the country. In order to deal with the epidemic and support the economy, fiscal and tax authorities issued support policies to fight against the epidemic within a short period of time. China's fiscal and tax systems have made a quick response to emergencies. Facing the world, it is on the tiptoe of expectation that how China will participate in setting up the landscape of global tax governance against the backdrop of BEPS 2.0 to give play to China wisdom amongst new challenges.
Lead Partner, Outbound Investment Service; China North Tax Leader, PwC China
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