On August 15, 2024, the State Taxation Administration (STA) introduced the “Notice on Further Facilitating the Inter-provincial Relocation of Taxpayers to Serve the Construction of a Unified National Market” (the “New Circular”), effective from September 1, 2024.

Aim: This initiative streamlines the taxpayer relocation process across China, offering a series of measures from initial guidance to post-relocation support, designed to enhance administrative efficiency and bolster the unified national market.

Details:

1. Proactive Guidance: Tax authorities will provide proactive tax procedure guidance and reminders to taxpayers planning relocation, ensuring all pending tax matters are addressed.
2. Streamlined Procedures:

• • Tax Issue Resolution: Swiftly address or close any unresolved tax issues.
  • Invoice Management: Seamlessly transfer electronic invoice quotas and simplify tax control device updates.
  • Risk-Based Relocation Handling: Efficiently manage low-risk relocations and complete risk assessments for medium to high-risk cases promptly.
  • Refund Facilitation: Automatically notify overpaid taxpayers of refund eligibility and ensure timely processing.

1. Post-Relocation Services: Destination tax authorities will offer comprehensive services to preserve taxpayer rights and assist with pre-relocation tax matters.

Impact: By simplifying administrative processes, the New Circular ensures business operations are uninterrupted across locations, allowing taxpayers to anticipate and manage relocation disruptions effectively, reducing overall costs. The STA’s efforts to minimize bureaucratic obstacles are set to enhance the free flow of resources and business activities, thereby improving China’s business environment, increasing investor confidence, and fostering the growth of the unified national market.