The state tax bureau issued Shuizongfa [2016] No.28 for addressing the work arrangement for tax reformation this year. We found the main points for this regulation are as follows.

1.     To require the stability for the tax policies: to reduce the cost for tax obligation due to the change of the regulations and the misunderstanding by the public;

2.     To simplified the registration procedures but at the same time to encourage the tax payer’s finish the tax obligation in good faith;

3.     To make the administration via the modern facilities (e.g. through big data, internet + tax);

4.     To make the tax control via risk reminder, tax assessment, audit, the research on tax evasion and tax inspection;

5.     To set up the credit system and ask for the public administration;

Dongjin understands that the trend and main points for tax reformation are as follows.

1.     The registration procedures will be simplified and the post administration will be strengthened;

2.     Management on Fapiao will be strengthened and the tax bureau will set up the system for electric Fapiao;

3.     The tax bureau will focus on the research on the tax evasion;

4.     The tax bureau will share information with the public security and realize the power combination enforcement between administrative and criminal points of view;

5.     The tax bureau will set the blacklist and share it with other departments to effectively restrict the illegal actions.

We advise the WOFEs should have a good internal control on the tax matters. It is highly recommended to have the qualified consulting company to do the internal audit from time to time, find the tax risk and take the reasonable controlling methods.

Shanghai Dongjin has various experiences and can provide the above services.

If you have any questions, please send the email to me.

Ms. Jojo Hu

TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021

Email: jojohu@shanghaiinvest.com