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Ongoing Adjustments to Tax Incentive Policies: How Can Enterprises Prevent Tax Risks? Editor’s Note: Recent intensive adjustments to tax incentive policies in sectors such as new energy vehicles, bat
Aug. 21, 2026, 5:02 p.m.
1521Views
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Chain Stores Investigated for Splitting Income to Claim Small-Enterprise Tax Benefits: How Should a Reasonable Commercial Purpose Be Assessed?
Aug. 19, 2026, 4:16 p.m.
1607Views
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How Foreign Trade Enterprises Break the Tax Supplement Predicament Triggered by an Abnormal Reply Letter
Recently, many foreign trade enterprises have been denied export tax rebates by tax authorities at the tax rebate location due to abnormal reply letters issued by tax authorities of their upstream suppliers. Numerous foreign trade enterprises are confronted with similar plights: their entire procurement and export processes are compliant, with full consistency in contract flow, invoice flow, capital flow and goods flow. Nevertheless, merely due to abnormal upstream reply letters, they are denied tax rebates, taxed as domestic sales and charged late payment surcharges. Is such practice by tax authorities legally justified? This article analyzes the issue combined with practical cases and provides practical response suggestions for foreign trade enterprises.Aug. 17, 2026, 5:07 p.m.
1713Views
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Tax Compliance in the Alcohol Industry in Light of Recent Tax Cases: Managing Tax Risks Across the Value Chain under the New Consumption Tax Administration Rules
Editor’s Note:Since the beginning of 2026, the consumption tax administration rules applicable to beer and baijiu have been adjusted in succession, while several listed alcoholic beverage companies have disclosed substantial back-tax payments. Against the backdrop of continued industry restructuring, the ongoing transformation of sales channels, and increasingly refined tax administration, tax risks facing alcoholic beverage companies are extending beyond individual taxes and isolated business activities to the entire course of their operations. Taking the 2026 changes to the consumption tax administration rules and the back-tax disclosures of listed companies as its starting point, this article draws on tax administration practices across different regions to examine the principal tax risks arising throughout the alcohol industry value chain and offers corresponding recommendations for tax compliance.Aug. 14, 2026, 4:05 p.m.
1871Views
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27 Cases Reveal Criminal Methods and Defense Strategies in Export Tax Refund Fraud Cases in 2026
Editor's Note: On March 20, 2024, the Interpretation on Several Issues Concerning the Application of Law in Handling Criminal Cases Endangering Tax Collection and Administration officially came into effect. This judicial interpretation made comprehensive adjustments to the threshold for conviction, types of methods, and attempted crime determination for the crime of fraudulently obtaining export tax refunds. This article systematically reviews 27 publicly disclosed cases related to export tax refund fraud from January to August 2026, covering effective criminal judgments, guiding cases from the Supreme People's Court, procuratorial prosecution documents, tax audit transfer reports, and typical cases from the Ministry of Public Security, examining criminal methods and defense strategies from judicial practice.Aug. 14, 2026, 3:46 p.m.
1910Views
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After technology shares are contributed with deferred tax and the value is assessed as zero, should a pro-rata capital reduction by natural person shareholders be subject to individual income tax?
Editor's Note: In recent years, in the field of technological innovation, it has become a common corporate investment model for individuals to contribute technology achievements such as software copyrights and patents as capital contributions and file for deferred individual income tax payment. However, factors such as technological iteration or market changes may cause the current value of the technology achievements contributed as capital to be assessed as zero after evaluation. To meet compliance and regulatory requirements, companies reduce their registered capital through a pro-rata capital reduction by all shareholders without paying any consideration to the shareholders. This practice has sparked tax disputes: after the value of technology contributed as capital is assessed as zero, and the company conducts a pro-rata capital reduction, does this trigger the individual income tax liability for the investors? This article analyzes the tax treatment of this matter with the help of cases and in combination with current tax laws and regulations, aiming to provide a reference for relevant market entities.Aug. 12, 2026, 4:55 p.m.
1907Views
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From IPO Review to Capital Operations: Identifying and Managing Tax Risks Across the Lifecycle of Listed Companies
Editor’s Note: As tax regulation becomes increasingly sophisticated, tax-related matters are having an expanding impact on both prospective and existing listed companies, affecting areas including IPO review, financial reporting, information disclosure, and capital transactions. This article examines key tax-related risks faced by companies during the IPO process and common tax risks encountered by listed companies based on IPO review practices and publicly disclosed tax adjustment cases. It also provides practical recommendations for strengthening tax risk management and compliance.Aug. 10, 2026, 11:30 a.m.
2003Views
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Uninvoiced Freight Expenses of a Sole Proprietorship Disallowed as Pre-tax Deductions: Courts at Both Instances Find the Tax Authority Applied the Law Incorrectly
Editor's Note: In practice, tax authorities often issue risk alerts after comparing invoice amounts with tax returns and financial statements and finding that reported costs materially exceed the costs supported by invoices obtained. Does the absence of an invoice necessarily mean that a cost may not be deducted before tax? Drawing on the Enterprise Income Tax Law, the Individual Income Tax Law, and related rules, this article distinguishes the invoice-based deduction rule that generally applies under enterprise income tax from the actual-expense deduction rule for business income under individual income tax. It further examines Judgment (2024) Liao 10 Xing Zhong No. 174 and offers response strategies and compliance recommendations for such alerts, with a view to providing guidance for relevant market participants.Aug. 6, 2026, 10:14 a.m.
2243Views
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Warning: Where Overseas Retained Profits Are Not Distributed, Tax Authorities May Tax Them as Deemed Dividends
With in-depth application of tax-related information exchanged under the Common Reporting Standard (CRS), cross-border tax supervision has been drastically strengthened. Tax risks have risen sharply for resident enterprises that build overseas investment structures and retain profits abroad without dividend distribution over the long term to evade domestic tax liabilities. Recently, tax authorities in Beijing and Zhejiang have carried out compliance guidance targeting resident enterprises improperly retaining profits overseas, and the supplementary corporate income tax paid by relevant enterprises has sparked heated discussions across industries.Aug. 5, 2026, 9:57 a.m.
2331Views
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Key Considerations for Small and Low-Profit Enterprise Tax Incentives: Understanding Eligibility Requirements and Managing Invoice Risks
Editor’s Note:In recent years, tax administration concerning the application of preferential tax policies for small and low-profit enterprises has become increasingly precise. Whether an enterprise may continue to enjoy such incentives depends not only on whether it meets the three eligibility criteria—annual taxable income, number of employees, and total assets—but may also be affected by the compliance of transaction documentation and tax risks involving upstream suppliers. Drawing on publicly available cases, this article reviews common forms of fraudulent claims and erroneous applications of the incentives, examines disputes over cost deductibility and eligibility for small and low-profit enterprise incentives arising from irregular upstream invoices, and offers corresponding compliance recommendations.July 31, 2026, 4:15 p.m.
2596Views
