Dispel clouds, sail ahead: An overview of China’s tax policies from 2024 to 2025 and tax guides to 11 popular investment destinations for Chinese enterprises going global

April 2025

In recent years, China’s economy has entered a crucial phase of structural adjustment and transformation. As domestic market competition intensifies, Chinese enterprises urgently need to explore new growth pathways. The booming emergence of overseas markets and their vast consumption potential offer unprecedented opportunities for Chinese businesses. Leveraging this momentum, Chinese companies are accelerating their global presence with increasingly prominent international influence. According to the data released by the Ministry of Commerce on January 26, 2025, China’s non - financial direct investment abroad in 2024 was $143.85 billion, marking a year-on-year increase of 10.5%—a clear indicator of Chinese enterprises’ accelerating global expansion.

The trend of enterprises going global is closely intertwined with the development of China’s tax policies. China’s tax policies provide support and safeguards for enterprises venturing overseas, and in turn, the overseas expansion of enterprises drives the continuous improvement of tax policies. On one hand, policies such as export tax rebates and foreign income tax credits assist enterprises in reducing costs and prevent them from being double-taxed. On the other hand, the growing scale and increasing complexity of enterprises’ overseas operations require more robust frameworks to address cross-border tax disputes and eliminate international double taxation.

The year 2024 witnessed landmark legislative advancements in China’s tax system: the introduction of advance tax ruling regulations across multiple regions and the legislative enactment of the Value-Added Tax Law have collectively forged a more equitable, transparent, and stable business tax environment for domestic enterprises. However, as businesses expand globally, they encounter vastly divergent tax landscapes. The tax systems and collection and administration rules vary greatly among different jurisdictions, bringing a lot of uncertainties to enterprises’ overseas expansion. From Southeast Asian emerging markets to mature Western economies, variations in taxable categories, rates, incentives, and regulatory mandates demand tailored tax support mechanisms and sufficient preparations to ensure sustainable global growth.

Dispel clouds, sail ahead: An overview of China’s tax policies from 2024 to 2025 and tax guides to 11 popular investment destinations for Chinese enterprises going global came into being precisely under this backdrop. This publication aims to review major annual tax policy changes in China, analyse policy development trends from a forward-looking perspective, summarise tax hot topics in 11 popular overseas-expansion destinations, and provide guidance for tax decision-making in the process of enterprises going global.

We anticipate that, through the analytical insights and strategic guidance in this publication, enterprises will well understand the evolving tax trends and confidently navigate the complex tax landscapes. Simultaneously, businesses will well perform in the global markets, charting transformative paths to amplify China’s international economic influence through compliant and visionary cross-border expansion.