As a core industrial pillar underpinning the development of agriculture, rural areas and farmers (the "Three Rural Issues"), the agricultural product sector is deeply embedded in rural revitalization and the modernization of agricultural and rural development, occupying a strategically pivotal position in China’s overall national development agenda. Nevertheless, the unique provisions governing agricultural product taxation have rendered the industry prone to tax recovery orders, late payment surcharges, findings of tax evasion and export tax fraud, consistently landing it under intensive scrutiny from tax audit authorities. Drawing on typical publicly disclosed tax cases in the agricultural product sector released this year, this article pinpoints prominent industry-wide tax compliance pitfalls and puts forward practical compliance suggestions for market participants operating in the sector.

Editor's Note: Tax authorities have recently investigated and handled a case involving a partnership enterprise's unlawful use of approved assessment. In this case, the natural person partners were determined by the tax authorities to owe supplementary individual income tax of CNY 333 million, plus corresponding late-payment surcharges. Drawing on this case, this article analyzes the tax treatment of non-trading transfers of listed company shares held through equity holding platforms, whether an approved assessment qualification obtained during the operational period applies to the dissolution and liquidation phase, and whether late-payment surcharges should be levied on the natural person partners under the "distribute-first, tax-later" model — with the aim of providing reference for related practice.

Editor’s Note: As of May 25, 2026, more than 2,900 enterprises nationwide have had their High and New Technology Enterprise (HNTE) qualifications revoked during the year, reflecting a continuing trend of stricter regulatory oversight of HNTE status across China. This underscores the requirement that enterprises must continuously meet the qualification criteria throughout the validity period of their HNTE status and maintain ongoing, dynamic compliance. Against this backdrop, this article, drawing on relevant tax-related cases, systematically examines the tax risks arising in the application of preferential tax policies for HNTEs and provides tax compliance recommendations for reference by high-tech enterprises.

Editor's Note: In venture capital practice, discrepancies in the tax and accounting treatment of equity transfers by partnerships represent a high-risk area for tax audits and a focal point of disputes between taxpayers and tax authorities. This article analyzes a case in which a partnership, following an equity transfer, directly offset the transfer proceeds against the book value of its long-term equity investment rather than recognizing taxable income and filing the corresponding tax returns, thereby triggering a tax audit. Based on this case, the article examines three core disputed issues, analyzes the underlying legal logic, and offers compliance recommendations, with the aim of providing practical guidance and risk alerts for relevant partnerships and their investors.

Editor’s Note: Invoices are important vouchers for enterprise operations, which are directly related to core tax-related matters of enterprises such as VAT input deduction and pre-tax deduction of corporate income tax. On May 15, 2026, the State Taxation Administration explicitly required that local tax authorities shall conduct categorized disposal, and shall not simply adopt a "one-size-fits-all" approach to suspend invoice issuance, restrict invoice issuance or reduce invoice quota for enterprises without actual verification. In practice, regulatory measures taken by tax authorities such as suspending invoice issuance, restricting invoice issuance and reducing the credit line of fully digitalized electronic invoices will exert varying degrees of impact on enterprises’ business operation, tax cost and supply chain cooperation. With the promotion of fully digitalized electronic invoices, invoice management has shifted from the "purchase system" to the "credit system". The dynamic adjustment of credit lines by tax authorities has triggered new legal disputes—whether such adjustment constitutes de facto suspension or restriction of invoice issuance. Based on the current tax laws and regulations, this paper clarifies the statutory conditions for invoice suspension and restriction measures, objectively analyzes the impact of various invoice regulatory measures on upstream and downstream enterprises combined with the new rules of credit line management under the fully digitalized electronic invoice system, and provides professional references for enterprises to prevent and resolve relevant tax risks.

Editor's Note: The reverse-invoicing system for agricultural product purchase invoices was designed to address the practical difficulty faced by farmers who cannot issue VAT invoices on their own. Today, as the Golden Tax System and big data risk control platforms continue to evolve, when the same individual's name appears frequently and in large amounts on the agricultural product purchase invoices of multiple enterprises, the system will automatically flag it and push it for investigation. This article analyzes the legal characterization of such conduct through a case study, focusing on the remediation path of re-issuing invoices, outlining the specific procedural rules and key proof points for establishing the qualifications of self-producing farmers, in order to provide agricultural product procurement enterprises with practical guidance on risk management and compliance.

Editor's Note: Starting June 1, 2026, ten revised tax enforcement documents for inspections issued under Announcement No. 10 of 2026 by the State Administration of Taxation (SAT) will officially take effect. Following the 2024 amendments that aligned with the revised Administrative Reconsideration Law, this marks another significant update to the tax enforcement document system—advancing the standardization and normalization of tax inspection enforcement and adapting to new requirements for administrative inspections. Unlike the 2024 revision, this round focuses specifically on inspection-type documents. This article analyzes the key changes and highlights from the perspective of tax attorneys, and identifies critical practical considerations for businesses.

Editor's Note:Recently, many Chinese tax residents have received pop-up notifications on their Individual Income Tax (IIT) APP. The tax authorities, through big data analysis, identified that they may have derived income from outside China during the selected tax year and reminded them to declare foreign-sourced income in accordance with the law when handling the comprehensive income final settlement. This pop-up notification has once again sparked widespread attention among Chinese tax residents regarding the Common Reporting Standard (CRS). In view of this, this article starts by observing the collection and management environment for foreign-sourced income, sorts out the evolution process and latest implementation progress of CRS, with a view to providing useful suggestions for tax compliance of Chinese tax residents.