|Circular Number||Issuance Date||Effective Date||Topic||What is new?|
|State Administration of Taxation (“SAT”) Announcement  No. 35||2019-10-14||2020-01-01||Administrative measures on non-PRC resident taxpayers applying for treaty benefits||This Announcement (“Announcement 35”) will replace the existing SAT Announcement  No. 60 (“Announcement 60”) from 1 January 2020. Key changes brought by Announcement 35 are as follows:
|SAT Announcement  No. 36||2019-10-26||2020-01-01||Deemed taxation method applicable to retail export in Cross-border E-commerce Comprehensive Pilot Zone (“Comprehensive Pilot Zone”) for Corporate Income Tax (“CIT”) purposes||Cross-border e-commerce is rapidly growing in China. It is usually the case that a company engaged in cross-border e-commerce finds it difficult to get a purchase invoice for the goods for export. To further encourage the development of this industry, a circular Caishui  No. 103 (“Circular 103”) was released in September 2018. According to Circular 103, for e-commerce retail export companies established in the Comprehensive Pilot Zone meeting certain conditions (“Qualified Companies”), export of goods purchased without valid purchase vouchers can be exempt from VAT and Consumption Tax (“CT”). This Announcement was released to further clarify that the deemed taxation method is applicable to the Qualified Companies for CIT purposes. According to this Announcement, the Qualified Companies should accurately book their revenues. The taxable income of a Qualified Company should be determined based on its actual revenue multiplied by a deemed profit rate of 4% (i.e. the minimum deemed profit rate applicable to wholesale and retail industry under the circular Guoshuifa  No. 30). Qualified Companies meeting relevant conditions under the circular Caishui  No. 13 are entitled to the preferential CIT treatment applicable to small-scale and micro-scale enterprises. CIT-exempted incomes derived by the Qualified Companies, as stipulated under the PRC CIT Law, can be exempt from CIT.|
|SAT Announcement  No. 38||2019-11-14||2020-02-01||Administration of anomalous VAT credit vouchers||The Announcement was released to improve the current taxation environment.