Core Viewpoint - The implementation of the new Value-Added Tax Law and its regulations in China will officially begin on January 1, 2026, with no current adjustments to tax rates for internet companies [1] Group 1: Tax Policy Changes - The new Value-Added Tax Law and its implementation regulations will take effect on January 1, 2026 [1] - Current tax policies continue to focus on supporting technological innovation [1] Group 2: High-Tech Enterprise Certification - The management measures for high-tech enterprise certification may be updated, potentially leading to stricter standards [1] - If the certification standards become more stringent, some non-leading internet companies may struggle to benefit from preferential income tax rates [1]

（二）一般纳税人提供客运场站服务，以取得的全部含税价款扣除支付给承运方的运费后的余额计算销 售额。 一般纳税人就提供客运场站服务取得的全部含税价款，向购买方开具发票；支付给承运方的运费对应的 进项税额不得从销项税额中抵扣。 关于明确增值税应税交易销售额计算口径的公告 财政部 税务总局公告2026年第12号 为做好《中华人民共和国增值税法》实施工作，延续现行制度和做法，现将增值税应税交易销售额有关 事项公告如下： 一、纳税人发生下列应税交易，以扣除相关价款后的余额计算销售额： （一）纳税人转让金融商品，以卖出价扣除买入价后的余额计算销售额。 转让金融商品出现的正负差，按盈亏相抵后的余额计算销售额。若相抵后出现负差，可结转下一纳税期 与下期转让金融商品销售额相抵，但年末时仍出现负差的，不得转入下一个会计年度。 金融商品的买入价，可以选择按照加权平均法或者移动加权平均法进行核算，选择后36个月内不得变 更。 纳税人转让金融商品，不得开具增值税专用发票。 （七）纳税人提供签证代理服务，以取得的全部含税价款，扣除向服务接受方收取并代为支付给外交部 和外国驻华使（领）馆的签证费、认证费后的余额计算销售额。 （三）航空运输 ...

Group 1: Domestic Regulations - From January 1, 2026, China will implement a provisional import tariff lower than the most-favored-nation rate on 935 items, including key components, advanced materials, and energy resources [2] - The new VAT law will take effect on January 1, 2026, consisting of 6 chapters and 54 articles, aimed at implementing the VAT law of the People's Republic of China [4] - The "Personal Information Export Certification Measures" will be enforced starting January 1, 2026, detailing the application process and requirements for personal information export certification [5] - A one-time credit repair policy will be implemented on January 1, 2026, allowing automatic adjustments to credit records for overdue payments made between January 1, 2020, and December 31, 2025, under specific conditions [6] - The revised National Common Language and Writing Law will come into effect on January 1, 2026, establishing the third week of September as the National Promotion Week for Common Language and Writing [8] - The modified "Civil Case Cause Regulations" will be effective from January 1, 2026, increasing the total number of causes to 1,055, including new categories related to data and virtual property [9] Group 2: International Developments - Mexico will increase import tariffs on non-free trade partners starting January 1, 2026, affecting a wide range of products including automotive parts, textiles, furniture, plastics, and steel [11] - Germany will raise child benefits by 4 euros per month starting January 2026, bringing the total to 259 euros [12] - Haikou Meilan Airport will launch a direct flight route to Hanoi, Vietnam, starting December 28, 2025, with flights operated by Hainan Airlines [13] - Chengdu will open its first direct flight route to Kazakhstan, with flights to Almaty starting December 30, 2025, using Airbus A320 aircraft [14]

Domestic Regulations - From January 1, 2026, China will implement a temporary import tariff lower than the most-favored-nation rate on 935 items, including key components, advanced materials, and energy resources [2] - The new Value-Added Tax Law will take effect on January 1, 2026, consisting of 54 articles covering tax rates, taxable amounts, tax incentives, and collection management [4] - The Personal Information Export Certification Measures will be enforced starting January 1, 2026, aimed at protecting personal information rights and regulating cross-border data flow [5] - A one-time credit repair policy will be implemented on January 1, 2026, allowing for automatic adjustments of overdue records under specific conditions, which will not appear on personal credit reports [6][18] - The revised National Common Language and Writing Law will come into effect on January 1, 2026, promoting the use of standardized language and writing across the country [7][14] - The revised Civil Case Cause Regulations will also take effect on January 1, 2026, expanding the scope of legal causes to include data and virtual property [8] International Developments - Mexico will increase import tariffs on non-free trade partners starting January 1, 2026, affecting a wide range of products including automotive parts, textiles, and plastics [8] - Germany will raise child benefits by 4 euros per month starting January 2026, bringing the total to 259 euros [9]

Group 1 - The new version of the National Basic Medical Insurance, Maternity Insurance, and Work Injury Insurance Drug Directory has been implemented, adding 114 new drugs to the reimbursement list, including 50 first-class innovative drugs, while removing 29 drugs that are either not clinically available or can be replaced by better alternatives [2] - The total number of drugs in the directory has increased to 3,253, with 1,857 Western medicines and 1,396 traditional Chinese medicines, significantly enhancing coverage for key areas such as cancer, chronic diseases, mental illnesses, rare diseases, and pediatric medications [2] Group 2 - Starting today, all medical institutions are required to fully collect and upload drug traceability codes, which serve as "electronic IDs" for drugs, ensuring traceability throughout the production, circulation, usage, and insurance settlement processes [3] - The National Medical Insurance Information Platform has collected 110.369 billion traceability codes, aiding in the resolution of multiple national counterfeit drug cases and addressing 39,100 illegal institutions, with 188 cases referred to judicial authorities [3][5] Group 3 - A new policy requires kindergartens to implement a directory management system for fees, establishing two separate lists for service fees and kindergarten-specific charges, with strict public disclosure requirements [6] Group 4 - The People's Bank of China will automatically adjust credit information based on repayment conditions, with specific criteria set for overdue debts occurring between January 1, 2020, and December 31, 2025, allowing for the removal of certain overdue information from personal credit reports if conditions are met [8] - The new VAT law and its implementation regulations have come into effect, with 14 out of 18 existing tax types now having legal frameworks, covering a significant portion of tax revenue [8]

General Provisions - The regulations are formulated based on the "Value-Added Tax Law of the People's Republic of China" [1] - The term "goods" includes tangible movable property, electricity, heat, gas, etc. [2] - The term "services" encompasses transportation, postal, telecommunications, construction, financial, IT, cultural, sports, and consulting services [2] - The term "intangible assets" refers to assets without physical form that can bring economic benefits, including technology, trademarks, copyrights, goodwill, and natural resource usage rights [2] - The term "real estate" includes assets that cannot be moved or whose nature changes upon movement, such as buildings and structures [2] - The term "units" includes enterprises, administrative agencies, public institutions, military units, social organizations, and other entities [3] Tax Rates - Exported goods are defined as those reported to customs and sold to foreign entities or individuals, as well as goods deemed as exports by the State Council [8] - The tax rate for cross-border sales of certain services and intangible assets is zero, including R&D services, energy management services, design services, and international transportation services [9][10] Taxable Amount - Taxpayers can deduct input VAT from output VAT based on valid tax deduction certificates, including special VAT invoices and customs import VAT payment certificates [12] - Taxpayers using the general taxation method must deduct VAT amounts returned to buyers due to sales discounts or returns from the current output VAT [13] - Taxpayers using the simplified taxation method must deduct sales amounts returned to buyers from the current sales amount [14] Tax Incentives - Agricultural producers and medical institutions are defined under the VAT law, with specific exemptions for their income [26][27] - The scope, standards, and conditions for VAT preferential policies should be publicly disclosed [32] - The State Council's financial and tax authorities should evaluate the effectiveness of VAT preferential policies and propose adjustments as necessary [34] Collection Management - Taxpayers exceeding the small-scale taxpayer threshold must register as general taxpayers and calculate VAT using the general taxation method [28] - Taxpayers must issue invoices for taxable transactions, with specific conditions under which they cannot issue special VAT invoices [29] - Taxpayers exporting goods must follow specific procedures for declaring and handling export VAT refunds or exemptions [49][50] Implementation - The regulations will come into effect on January 1, 2026 [36]

Group 1 - The implementation of the VAT Law on January 1, 2026, marks a new phase for China's largest tax type, enhancing its role in fiscal revenue collection, economic regulation, and income distribution adjustment [1][2] - VAT is a turnover tax based on value-added, featuring a multi-stage collection and deduction system, which avoids double taxation and improves administrative efficiency, making it widely adopted globally [1] - In 2024, China's VAT revenue is projected to be approximately 6.57 trillion yuan, accounting for 38% of total tax revenue, highlighting its significant role in the tax system [1] Group 2 - The reform and development of VAT are crucial for the interests of businesses and individuals, as well as for the overall economic and social operation [2] - The VAT Law, passed on December 25, 2024, after over a year of preparation, aims to stabilize the tax system and incorporate practical experiences and reform outcomes into law [2][3] - The implementation of the VAT Law is a milestone in the process of establishing tax law principles, contributing to a fair and unified tax environment [3] Group 3 - The effective implementation of the VAT Law requires detailed regulations and practical measures to ensure compliance and enforcement [3] - The ongoing development of tax law, including the completion of legislation for other tax types like consumption tax, is essential for advancing tax reform and legal governance [4] - Continuous attention is needed to adapt the VAT system to promote a unified national market and a fair competitive environment, especially in light of new business models [4]

Core Points - The implementation of the Value-Added Tax (VAT) Law will officially begin on January 1, 2026, marking a new phase in the operation and development of this major tax type in China [2][3] - VAT is a significant source of revenue for the government, projected to generate approximately 6.57 trillion yuan in 2024, accounting for 38% of total tax revenue [2] - The VAT Law aims to enhance the scientific, stable, and authoritative nature of the tax system, incorporating practical experiences and reform outcomes into legal frameworks [3][4] Group 1 - The VAT Law represents a milestone in the process of implementing the principle of tax law, which is crucial for deepening fiscal and tax system reforms [4] - The law maintains overall tax burden levels and stabilizes the tax system while clarifying tax elements, tax incentives, and collection management [3][4] - The implementation of the VAT Law requires supporting regulations to ensure clarity and operability, with recent government meetings approving implementation rules [4] Group 2 - The completion of VAT legislation is a key step in establishing a fair and unified tax environment, with 14 out of 18 current tax types having completed legislation [4] - Continuous efforts are needed to fully implement tax law principles and build a robust tax legal framework, with other tax types like consumption tax still pending legislation [5] - The ongoing reform of the VAT system should focus on promoting a unified national market and adapting to new business models and economic developments [6]

Core Viewpoint - The implementation of the VAT Law marks a new phase for the largest tax category in China, enhancing its role in fiscal revenue collection, economic regulation, and income distribution adjustment, contingent on the refinement of supporting details and strict enforcement [1][2][3]. Group 1: VAT Law Implementation - The VAT Law will officially take effect on January 1, 2026, transitioning from a provisional regulation to a formal legal framework, which is expected to better fulfill its roles in fiscal revenue, economic regulation, and income distribution [1][2]. - The VAT system, characterized by its value-added base and multi-stage collection method, is designed to avoid double taxation and enhance administrative efficiency, making it a widely adopted tax model globally [1][2]. - In 2024, China's VAT revenue is projected to be approximately 6.57 trillion yuan, accounting for 38% of total tax revenue, highlighting the significant role of VAT in the national tax system [1]. Group 2: Historical Context and Development - The introduction of the VAT system in China began in 1979, with the provisional regulations established in December 1993, leading to a series of reforms including the "business tax to VAT" transition and tax rate simplification [2][3]. - The completion of VAT legislation is a critical step in implementing the principle of tax law, contributing to a fair and unified tax environment, with 14 out of 18 current tax types having completed legislation [3]. Group 3: Implementation and Compliance - The effective implementation of the VAT Law requires detailed supporting regulations to clarify legal provisions, ensuring certainty and operability within the tax system [3]. - The State Council has approved implementation regulations that detail various provisions, creating a cohesive VAT system that ensures taxpayers have legal guidance and tax authorities have enforcement standards [3]. - Continuous efforts are needed to uphold the principle of tax law and advance tax law construction, with ongoing reforms in other tax categories like consumption tax still pending [4].

Group 1 - The State Council, led by Premier Li Qiang, emphasized the need for all departments to align their actions with the central government's economic work requirements and policies for the upcoming year, enhancing responsibility and urgency in task execution [1] - The meeting highlighted the importance of safety production, stressing the need for continuous vigilance and proactive measures to prevent major accidents, particularly in key industries [2] - A comprehensive solid waste management action plan was deployed, focusing on reducing waste generation, resource utilization, and harmless disposal, with an emphasis on waste closely related to public safety and daily life [2] Group 2 - The draft implementation regulations for the Value-Added Tax Law were approved, aiming to ensure smooth implementation and protect taxpayer rights while fostering a fair competitive environment [3] - The draft Commercial Mediation Regulations were also approved, aiming to standardize commercial mediation activities and enhance the credibility of mediators, while aligning domestic rules with international standards [3]