Circular  Number

Issuance  Date

Effective Date


What is new?

Caishui [2018] No. 99, jointly issued by the Ministry of Finance (“MoF”), the State Administration of Taxation (“SAT”) and the Ministry of Science and Technology (“MST”)



75% super-deduction of Research and Development (“R&D”) expenses applicable to all enterprises

According to the Circular, 75% super-deduction of R&D expenses, which was only applicable to Medium- and Small-scale Science and Technology Enterprises, shall now be applicable to all enterprises during the period from 1 January 2018 to 31 December 2020.

Caishui [2018] No. 102, jointly issued by the MoF, the SAT, the National Development and Reform Commission (“NDRC”) and the Ministry of Commerce (“MOFCOM”)



Dividend Withholding Tax (“WHT”) deferral for overseas investors’ direct re-investment in China applicable to all non-prohibited projects

This Circular is a replacement of the circular Caishui [2017] No. 88 (“Circular 88”) and shall be retroactively effective from 1 January 2018. According to this Circular, the requirement under Circular 88 for re-investment in encouraged projects for dividend WHT deferral has now been cancelled. Instead, non-PRC tax resident enterprises’ using dividends derived from the PRC to make equity re-investment into all non-prohibited projects in China shall qualify for the WHT deferral treatment.  All other requirements for the WHT deferral and administration procedures under Circular 88 have been fully inherited by this Circular.

Caishui [2018] No. 103, jointly issued by the MoF, the SAT, the MOFCOM and the General Administration of Customs (“GAC”)



Tax policies of retail export of goods from the Comprehensive Pilot Areas for Cross-border E-commerce

According to the Circular, enterprises, located in the Comprehensive Pilot Areas for Cross-border E-commerce (“Comprehensive Pilot Areas”) and engaged in cross-border E-commerce, can enjoy VAT and Consumption Tax (“CT”) exemption for export of goods of which valid purchase vouchers are not obtained, as long as all the requirements below are met:


The enterprise engaged in cross-border e-commerce is registered in the Comprehensive Pilot Area and has finished registration of the following information via the online platform of cross-border e-commerce: date of export, name of the goods exported, unit for measurement, quantity, unit price and price amount;




The export declaration procedures for e-commerce have been completed at the Customs of the Comprehensive Pilot Area; and




The exported goods do not fall within the catalogue (promulgated by the MoF and the SAT following the decision of the State Council) of goods which cannot enjoy export tax refund or exemption

Enterprises engaged in export through E-commerce refer to enterprises or private-owned businesses engaged in exports through self-built cross-border e-commerce platform or any third-party cross-border e-commerce platform.