Group 1 - The China Securities Regulatory Commission has revised the Corporate Governance Guidelines for listed companies, effective from January 1, 2026, to further regulate the behavior of directors, senior management, and controlling shareholders, enhancing corporate governance standards [1] - The People's Bank of China has issued the Interbank Market Brokerage Business Management Measures, effective from January 1, 2026, which prohibits brokerage firms from providing services for financial institutions participating in bond issuance, while emphasizing the need for enhanced internal controls and process management [2] - The People's Bank of China has announced a one-time credit repair policy, effective from January 1, 2026, allowing individuals to have overdue information removed from credit databases if they repay overdue debts by specified deadlines [3] Group 2 - The Financial Regulatory Bureau has revised the Trust Company Management Measures, effective from January 1, 2026, to strengthen the regulatory framework for the trust industry, requiring major shareholders to provide accurate operational and financial information [4] - The Financial Regulatory Bureau has issued the Financial Leasing Company Management Measures, effective from January 1, 2026, focusing on the unique functions of financial leasing companies and outlining specific regulations for various leasing activities [5] - The new Value-Added Tax Law will come into effect on January 1, 2026, marking significant progress in implementing the principle of tax legality in China [6] Group 3 - The Ministry of Commerce and other departments have issued a notice to strengthen the management of used car exports, effective from January 1, 2026, requiring additional documentation for vehicles registered less than 180 days before export [7] - A mandatory national standard for electric vehicle energy consumption will be implemented on January 1, 2026, setting stricter limits on energy consumption compared to previous recommendations [8][9] - The State Council Tariff Commission has announced adjustments to import tariff rates and categories, effective from January 1, 2026, including zero tariff treatment for 43 products from least developed countries [10] Group 4 - The new management measures for oil and gas infrastructure will take effect on January 1, 2026, promoting private sector participation in oil and gas pipeline projects and related infrastructure [11] - The Ministry of Finance and the State Taxation Administration have announced changes to the value-added tax policy for personal housing sales, effective from January 1, 2026, imposing a 3% tax on properties sold within two years of purchase [12] - The national medical insurance drug list will be updated on January 1, 2026, adding 114 new drugs, including 50 innovative drugs, significantly improving coverage for critical health areas [13] Group 5 - The National Development and Reform Commission, along with other ministries, has issued a notice to improve kindergarten fee policies, effective from January 1, 2026, allowing various types of fees while implementing government-guided pricing for public and non-profit kindergartens [14] - A subsidy program for the purchase of new household appliances and smart products will begin on January 1, 2026, offering a 15% subsidy on eligible products, with specific caps on the amount per item [15]

Core Viewpoint - The new VAT policy effective from January 1, 2026, will impose a 3% VAT on individuals selling homes purchased for less than two years, while those selling homes purchased for two years or more will be exempt from VAT, reflecting a significant tax reform aimed at simplifying the tax system and promoting a healthier real estate market [1][2]. Group 1 - The VAT rate for individuals selling homes purchased for less than two years will be reduced from 5% to 3% [1]. - The exemption of VAT for individuals selling homes purchased for two years or more maintains legislative consistency following the implementation of the VAT law [1]. - The new policy is expected to provide a direct reduction in tax burden for individuals, positively impacting the development of the real estate market [2]. Group 2 - The VAT law aims to simplify and standardize the tax system by reducing the number of applicable tax rates for small-scale taxpayers [1]. - Prior to the new VAT law, small-scale taxpayers faced VAT rates of either 3% or 5%, with the 5% rate being a carryover from previous business tax policies [1]. - The legislative changes reflect the spirit of tax law and the need for a more streamlined tax structure [1].

Core Viewpoint - The Ministry of Finance and the State Taxation Administration of China announced that starting from January 1, 2026, individuals selling residential properties purchased for less than two years will be subject to a 3% value-added tax (VAT), while those selling properties held for two years or more will be exempt from VAT [1] Group 1: Tax Policy Changes - From January 1, 2026, individuals (excluding general taxpayers among individual businesses) will pay a 3% VAT on the sale of residential properties purchased for less than two years [1] - Individuals selling residential properties purchased for two years or more will be exempt from VAT, maintaining legislative consistency after the implementation of the VAT law [1] - The VAT rate for individuals selling properties purchased for less than two years is reduced from 5% to 3%, reflecting the legislative spirit of tax law and simplification of the tax system [1] Group 2: Implications for the Real Estate Market - The reduction in VAT burden for individuals selling properties purchased for less than two years is expected to positively impact the healthy development of the real estate market [1] - The simplification and standardization of the tax system, along with the reduction of tax rate tiers, are seen as beneficial for the overall tax environment [1]

Group 1: Early Implementation of New Regulations - A series of new regulations will take effect on January 1, 2026, addressing various areas such as social security, early childhood education, electric vehicles, and cybersecurity, aimed at better responding to public concerns and enhancing development vitality [1] Group 2: Early Childhood Education Fee Regulations - The notification on improving kindergarten fee policies mandates that public kindergartens and non-profit private kindergartens implement government-guided pricing for tuition and accommodation fees, while for-profit private kindergartens will have market-regulated pricing [2] - A directory management system for kindergarten fees will be established, requiring public disclosure of service and additional fees, with any charges not listed or disclosed being prohibited [2] Group 3: Electric Vehicle Standards - The world's first mandatory energy consumption limit standard for electric vehicles will be implemented, requiring necessary technical upgrades for new products, with a specific limit of 15.1 kWh per 100 km for vehicles weighing around 2 tons, leading to an average increase of approximately 7% in driving range [2] Group 4: Taxation and Credit Policies - The new Value-Added Tax (VAT) Law will come into effect, marking significant progress in establishing legal frameworks for taxation in China, covering 14 out of 18 existing tax types [3] - A one-time credit repair policy will be enacted, allowing automatic adjustments to credit reports for overdue records under specific conditions, which will not be displayed if certain criteria are met [3] Group 5: National Park and Environmental Protection - The National Park Law encourages public participation in conservation efforts and prioritizes hiring local residents for ecological management positions within national parks [4] - The revised cybersecurity law will enhance risk monitoring and assessment related to artificial intelligence, supporting foundational research and ethical standards in AI development [4] Group 6: Legal Framework for Virtual Property - The revised civil case regulations will now include disputes over virtual property as a recognized category, reflecting the evolving nature of legal relationships in the digital space [4]

Group 1: Education and Childcare - Non-profit private kindergartens will have their tuition and accommodation fees regulated by government guidance, while for-profit private kindergartens will have market-adjusted fees. A directory management system for fees will be established, requiring public disclosure of charges [2] - The new regulations will ensure that any fees not listed in the directory or not publicly disclosed cannot be charged [2] Group 2: Electric Vehicles - A mandatory standard for electric vehicle energy consumption will be implemented, requiring necessary technical upgrades for new products. For vehicles weighing around 2 tons, the new standard mandates that energy consumption should not exceed 15.1 kWh per 100 km, which is expected to improve the average range of electric vehicles by approximately 7% [2] Group 3: Language and Communication - The revised National Common Language and Writing Law will take effect, promoting education and innovation in national language technology, and establishing new requirements for language use in cyberspace [2] Group 4: Taxation - The new Value-Added Tax (VAT) Law will come into effect, marking significant progress in the legal framework for taxation in China, with 14 out of 18 tax types now having established laws [3] Group 5: Personal Credit - A one-time credit repair policy will be introduced, allowing for automatic adjustments to credit reports based on repayment conditions, with certain overdue records being excluded from personal credit reports if specific criteria are met [3] Group 6: Environmental Protection - The National Park Law will encourage public participation in conservation efforts and prioritize hiring local residents for ecological management positions within national parks [3]

Core Viewpoint - The implementation of the Value-Added Tax (VAT) Law in China is progressing rapidly, with the draft regulations approved to support its official enforcement starting January 1, 2026, which is crucial for ensuring a fair competitive environment and protecting taxpayer rights [1][2]. Group 1: Legislative Process and Implementation - The State Council approved the draft implementation regulations for the VAT Law, marking a significant step towards its practical application [1]. - The VAT Law, which is set to be officially implemented on January 1, 2026, was passed after extensive public consultation and revisions [1]. - The VAT is the largest tax category in China, accounting for approximately 38% of total tax revenue, with an estimated revenue of 6.57 trillion yuan in 2024 [1]. Group 2: Regulatory Framework and Taxpayer Impact - The draft regulations aim to clarify rules and establish boundaries, addressing operational challenges in the implementation of the VAT Law [2]. - The draft includes six chapters and 57 articles, covering key areas such as tax rates, taxable amounts, tax incentives, and collection management, ensuring the existing tax burden remains stable [2]. - The transitional period of about one year is designed to allow for the development of supporting policies and clear operational guidelines to facilitate a smooth transition from the old to the new tax system [3].

Core Points - The implementation of the Value-Added Tax (VAT) Law in China is set to begin on January 1, 2026, following its approval at the 13th meeting of the 14th National People's Congress Standing Committee in late 2024 [1][3] - The Ministry of Finance and the State Taxation Administration have drafted the "Implementation Regulations of the Value-Added Tax Law (Draft for Comments)" to ensure smooth implementation [1][2] Group 1 - The VAT is the largest tax in China, with an estimated revenue of approximately 6.57 trillion yuan in 2024, accounting for 38% of total tax revenue [1] - The draft regulations consist of six chapters and fifty-seven articles, aimed at clarifying and detailing the provisions of the VAT Law, enhancing the certainty and operability of the tax system [2] - The regulations specify definitions for taxable transactions, including goods, services, intangible assets, and real estate, as well as clarifying the categories of taxpayers [2] Group 2 - The tax rate section of the draft clarifies the scope of zero-rated exports and cross-border sales of services and intangible assets, along with rules for transactions involving multiple tax rates [2] - The tax exemption section outlines specific standards for VAT exemption projects and the conditions under which tax incentives can be applied, emphasizing the need for transparency in tax policy [2] - The progress in tax legislation is notable, with 14 out of 18 tax types in China having completed the legislative process, reflecting significant advancements in tax rule of law [3]