Foreign Trade Industry Tax Compliance Report (2025)

The export tax rebate system constitutes a tax legal framework adopted by a nation or region. Its central tenet revolves around the refund or exemption of indirect taxes that goods have incurred during domestic production and circulation upon their exportation. The establishment of this system is designed to enable exported goods to penetrate the international market at a tax-free price, thereby enhancing their competitive edge in the global arena. Concurrently, it averts the double taxation of goods in cross-border transactions, thus fostering the growth of export trade. In recent years, the state has been continuously refining the export tax rebate process, resulting in a significant reduction in processing time and a substantial enhancement in efficiency. Moreover, the progressive implementation of paperless customs clearance, the reform of the foreign exchange underwriting system, and the ongoing improvement of facilitation services for cross-border trade renminbi settlement have all provided robust support for export enterprises to generate foreign exchange, further propelling the prosperity of export trade.

Jan. 15, 2025, 2:31 p.m.

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Coal Industry Tax Compliance Report（2025）

In 2024, with the gradual release of new production capacity, China's coal production maintained growth and further concentrated in Jinshan, Shanxi-Menggui and Xinjiang regions, with consumption accounting for more than 50% of the primary energy consumption structure, and the coal industry still occupies an important strategic position in the national economy. At the same time, due to the lack of invoices at the source, excessive tax burden and other problems, the coal industry is also a high incidence of false invoicing, tax evasion administrative and criminal cases.

Jan. 13, 2025, 10:09 a.m.

427Views

Petrochemical Industry Tax Compliance Report (2025)

The petrochemical industry, as an important pillar industry of the national economy, has always been concerned about its tax compliance issues. At present, the working mechanism of the eight departments of the country to jointly combat tax-related crimes has been implemented in detail, digital electronic invoices have been promoted and applied nationwide, the reform of tax collection and management has been deepening, and the new round of tax-related risks of enterprises has been fully escalated.On 18 March 2024, the Supreme People's Court and the Supreme People's Procuratorate jointly formulated and issued the ‘Interpretation of Issues Concerning Several Issues on the Application of Law in Handling Criminal Cases of Endangering Tax Collection and Management’. The Judicial Interpretation came into effect on 20 March 2024. The promulgation of the judicial interpretation by the Supreme Law and the Supreme Prosecutor is both a crisis and a new opportunity for the majority of petrochemical enterprises. The demarcation between crimes and non-crimes, and between this crime and that of the other has triggered extensive discussions, especially the application of the crimes of false opening of VAT invoices, illegal purchase of VAT invoices, illegal sale of VAT invoices, and tax evasion. Tax compliance has become a core element for the steady progress and sustainable development of enterprises, and petrochemical enterprises should effectively implement tax compliance in the whole process of corporate governance.
The ‘Petrochemical Industry Tax Compliance Report (2025)’ is a legal research report based on Hwuason Law Firm's in-depth observation of the petrochemical industry for many years and the profound summary of its experience in representing petrochemical industry tax-related cases in 2024. The report aims to reveal the current situation of petrochemical industry's tax-related cases and investigation trends, analyze the major changes in the petrochemical industry's tax-related risks, and put forward the defence strategies and compliance recommendations, with a view to Provide useful guidance for petrochemical enterprises in preventing and resolving tax-related risks.

Jan. 10, 2025, 3 p.m.

441Views

Investment Promotion Tax Compliance Report(2025)

Generally speaking, investment promotion refers to the activities of local governments in using external resources to promote regional economic development, which is of great significance in promoting local employment, optimizing local industrial structure and expanding the scale of economic development. For a long time, giving tax concessions and financial rebates to investing enterprises is a common way for local governments to attract investment, and this kind of financial and tax incentives can help alleviate the pressure on the capital turnover of investing enterprises, reduce operating costs, stimulate development vitality, and boost the development of the regional economy.

Jan. 8, 2025, 1:42 p.m.

1617Views

Flexible Labor Tax Compliance Report (2025)

Employment is the greatest livelihood. Against the backdrop of a booming sharing economy and with the support of Internet technology, flexible labor enterprises can more efficiently break down the information barrier between employers and talent resources, playing an important role in promoting employment and safeguarding people's livelihoods. In terms of taxation, flexible labor enterprises not only help employers obtain compliant invoices and reduce their tax costs, but also withhold and pay personal taxes on behalf of natural persons, preventing the spillover of personal tax risks, which is favored by employers and is conducive to overall tax compliance.

Jan. 6, 2025, 2:56 p.m.

969Views

Pharmaceutical Industry Tax Compliance Report（2025）

The tax risk of the pharmaceutical industry is closely related to the issue of commercial bribery, showing the co-existence of false invoicing and commercial bribery, with obvious industry characteristics.2024 The National Health Commission, the Drug Administration, the Municipal Supervision Bureau and other departments have studied and issued policy documents on preventing and combating the issue of commercial bribery in the pharmaceutical industry, and have continued to investigate and deal with the pharmaceutical industry's ‘sales with money ‘Fourteen ministries and commissions jointly continued to rectify the unethical practices in the purchase and sale of medicines, and the Stock Exchange and the Securities and Futures Commission (SFC) focused on the reasonableness of the proportion of sales expenses and the compliance of invoices of listed pharmaceutical enterprises. As the country's efforts to rectify the problem of commercial bribery in the pharmaceutical industry continue to escalate, the tax department of the tax-related violations of pharmaceutical enterprises also continued to increase the intensity of the 2024 outbreak of a number of pharmaceutical enterprises in the false opening of a major case, tax evasion cases, triggering a series of tax risks such as pharmaceutical enterprises to make up for the payment of value-added tax, the payment of late fees, tax adjustments and penalties, and some of the enterprises have also been pursued for the false invoicing of the crime of criminal responsibility. How to do tax compliance beforehand to prevent potential tax-related risks, and how to effectively prove and defend against the tax-related risks afterwards have become issues of urgent concern and solution for the pharmaceutical industry.

Jan. 3, 2025, 1:49 p.m.

1003Views

The Land Value Added Tax in Real Estate Industry Compliance Report

Recently, the real estate market is no longer prosperous as it was before 2019. Influenced by the economic downturn, China's real estate development investment is in a downward trend, and land value-added tax revenue data across the country and provinces are generally declining in volatility. In response to the changes in the real estate market, the Central Economic Work Conference in December 2024 explicitly proposed to use a series of policies to stabilize the property market , effectively prevent and resolve risks in key areas. However, the legalization of land value-added tax (LVAT) in China has been lagging behind for a long time, and the existing regulatory system for LVAT is too general and lacks sufficient attention to details, resulting in local normative documents showing significant variability and localization.

Jan. 2, 2025, 4:26 p.m.

2861Views

Recycling Industry Tax Compliance Report (2025)

The orderly operation of the renewable resources industry is of great significance in improving the level of resource recycling, enhancing the ability to guarantee resource security and promoting green, low-carbon and recycling development. Over the years, the tax policies in the field of recycling and comprehensive utilization of renewable resources have been constantly changing, and in order to promote compliant operation and improve profit margins, the business models of enterprises in the renewable resources industry have been adjusted, which at the same time have also given rise to a number of tax issues.

Dec. 30, 2024, 3:17 p.m.

1049Views

Logistics and Transportation Industry Tax Compliance Report (2025)

Logistics and Transportation Industry has become an important bridge connecting production and consumption due to its comprehensive and fundamental nature, and as an important part of the national economy, its level of development has a direct impact on the operational efficiency of the national economy. Among them, road freight transportation, with its flexibility and convenience, occupies a dominant position among many modes of transportation. In recent years, with the rapid development of e-commerce, express delivery services and cold chain logistics and other new industries, the demand for road freight transportation has continued to grow, and the market scale has been expanding. With the in-depth integration of mobile Internet technology and Logistics and Transportation Industry, the market has seen the emergence of new business models such as vehicle-less transport and network freight transport, which rely on big data, cloud computing and other technologies, intensive integration and scientific scheduling of vehicles, sources of goods,

Dec. 27, 2024, 7:22 a.m.

1349Views

Flexible Employment Platform Tax Compliance Report (2024)

In recent years, with the development of Internet technology and national policy support for the platform economy and flexible labor industry, flexible labor platform, as a bridge connecting labor-using enterprises and flexible workers, has shown a booming trend. Relying on Internet information technology, flexible labor platforms have opened up information barriers between labor-using enterprises and talent resources, improved the efficiency of human resources allocation, and played a key role in promoting employment and safeguarding people's livelihood. In terms of taxation, the flexible employment platform also helps to solve the problem of employing enterprises not being able to issue invoices for employing enterprises due to the provision of labor services by individual workers in the course of their operations, reducing the tax costs of employing enterprises, and has gained the favor of employing enterprises.
However, as a new industry organization, flexible labor platform is still in a period of rapid development and imperfection, and the relevant national policies are also in the process of further follow-up, the strong regulatory trend in the field of taxation has appeared, and tax preferential policies, such as financial rebates, will be gradually cleaned up.2023 A number of suspected false invoicing cases of the flexible labor platform have erupted, which reflects the weak links existing in the business development and tax processing of the flexible labor platform. On the one hand, some flexible labor platforms have made their business and tax treatment process weak. On the one hand, some flexible labor platforms used the fiscal rebate tax policy as the capital for false invoicing, and wantonly issued false invoices to outsiders in order to make unlawful benefits such as handling fees, resulting in the loss of the national tax interests and disrupting the order of tax collection and management; on the other hand, some flexible labor platforms were oriented on business and profits and neglected the platform tax compliance construction, resulting in the loopholes and deficiencies of the business model, which were utilized by the lawless elements to commit false invoicing and other illegal criminal acts. On the other hand, some flexible labor platforms are business and profit oriented, neglecting the platform tax compliance construction, resulting in loopholes and deficiencies in the business model, which are used by unlawful elements to carry out illegal and criminal behaviors, such as false opening, and fall into criminal risks. Therefore, it is urgent for flexible labor platforms to strengthen tax compliance construction and prevent tax risks.
Based on the in-depth observation of flexible labor platforms, HuaShui team has prepared this "Flexible Labor Platform Tax Compliance Report (2024)". This report summarizes the development of flexible employment industry and flexible employment platforms, observes their tax policies and regulatory trends, focuses on typical tax-related cases of flexible employment platforms in 2023 and discusses the causes of tax-related risks, summarizes the main tax-related risks of flexible employment platforms and their manifestations, puts forward the key points of administrative response and criminal defense strategies on the basis of the aforementioned, and finally provides suggestions for the daily tax compliance management of flexible employment platforms. Finally, it provides suggestions for the daily tax compliance management of flexible employment platforms, hoping to contribute to the sustainable and healthy development of the flexible employment industry.
This report is divided into eight sections, with a total text of about 25,000 words.

Jan. 30, 2024, 1:52 p.m.

4705Views