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 as well as implications on Chinese enterprises from a forward-looking perspective. This “2021 China Tax Policy Review and 2022 Outlook” is the 7th issue in the series.
As COVID-19 vaccines became more widely accessible, the economy in developed countries were gradually recovered from the pandemic in 2021. The US led global economic recovery with a strong rebound in the first half of the year. China plays an important role in the global economy. Its GDP has exceeded RMB 100 trillion for the second consecutive year in 2021, representing a growth rate of 8.1%. China attributes its sustained economic recovery to effective COVID-19 countermeasures, a steady rise in foreign investment and trade and more sustainable fiscal policies which enhance quality and efficiency.
This issue of “2021 China Tax Policy Review and 2022 Outlook” includes the following contents:
Due to countries' mixed performance in curbing COVID-19, the pandemic will linger into 2022. Even in an environment full of variables, tax reform will not stop. In 2022, the Two-pillar solution initiated by the Inclusive Framework on BEPS will make significant progress, laying the groundwork for its official implementation in 2023. In this new year, China will “prioritise stability while pursuing economic progress”, and China’s fiscal and tax authorities will also forge ahead with fiscal and tax reforms according to the “14th Five-Year Plan” on the premise that the economy maintains stable growth.
China Tax Leader, Central China Markets Leader, Shanghai Office Lead Partner, PwC China
Tel: + (21) 2323 3029
South China (incl. Hong Kong SAR) Tax Leader, PwC China
Tel: + (755) 8261 8899