China Tax Agency Issues Updated Guidance on Taxation Policies for Stabilizing Foreign Trade, Foreign Investment

The Chinese State Administration of Taxation Jan. 16 issued updated guidelines on the taxation policies for stabilizing foreign trade and foreign investment. The guidance includes: 1) an export VAT refund regime; 2) the application of a zero-rate policy for cross-border activities subject to VAT; 3) provisions for VAT and consumption tax refunds for cross-border, e-commerce retail exports; 4) a temporary withholding tax exemption on dividends directly invested by foreign investors; 5) VAT and corporate income tax exemptions for Taiwanese airlines and shipping companies engaged in service across the Taiwan Strait; 6) various tax policies and tax measures for Hong Kong ...