The State Taxation Administration ("STA") has recently distributed the Circular on Ensuring Further Effective Work on Implementing Policies for Tax and Fee Cuts (the "Circular").
The Circular states that with the focus on policies that are found not very feasible, bring benefits to a limited number of parties and contribute little to taxpayers' sense of gain, and those policies, the implementation of which is found unusual as shown by data on the reduced and exempted tax, in-depth surveys will be carried out to make an in-depth analysis, to find out the reasons according to the types of policy and conduct a careful research into effective measures to resolve such problems. Besides, the Circular notes that the STA is working hard on compiling and revising the Collection of Tax Incentive Policies to systematically straighten out and categorize all currently effective tax incentive policies released by the State, and will distribute this collection to local tax authorities in all places for their reference once such work is completed. Furthermore, the Circular clarifies that the majority of items previously requiring the record-filing in advance will be superseded by the requirement to retain relevant documents for future reference, which is a clear signal that the administrative model for tax incentive policies is being made more convenient and feasible.