Simplified Procedures for Cross-Region Business Relocation in China’s Unified National Market

Effective from September 1, 2024, China has introduced key measures to streamline the cross-region relocation process for businesses. The new procedures aim to make tax and regulatory compliance smoother and more efficient during relocations.

Key Measures

• Enhanced Information Sharing and Guidance - Tax authorities will improve data sharing with market supervision agencies and offer timely guidance via e-tax platforms to support taxpayers through the relocation process.
• Expedited Processing of Outstanding Tax Matters - During relocation, taxpayers can either expedite the resolution of any outstanding tax issues or opt to close these matters with minimal formalities, based on their preference.
• Automatic Transfer of Invoicing Information - For businesses using fully digitalised e-invoices, invoicing quota details will be automatically transferred to the new location. For those using the Golden Tax Device, the system allows for online information updates without needing physical device submission.
• Transfer of Risk-Handling Information - For pending low-risk tax matters, current tax authorities will pass relevant risk information to the new location’s tax authorities. For medium to high-risk matters, current authorities will promptly close these issues before transfer.
• Tax Refund Reminders and Processing - The tax system will automatically notify taxpayers of any tax refunds due in cases of overpayment. Authorities will process refunds before relocation, or provide guidance on claiming refunds post-relocation if the taxpayer opts to wait.
• One-Stop Services in New LocationTax authorities in the taxpayer’s new location will offer comprehensive services to ensure continuity of:

1. Tax credit ratings
2. Invoicing quotas
3. Prepaid tax information
4. Recoverable tax losses
5. General VAT payer status
6. Uncredited input VAT amounts

They will also guide taxpayers in resolving any unresolved tax issues from before the relocation.

Recommended Preparations

Given the variations in local tax authority practices, businesses planning a cross-region relocation should consult with their current tax authorities to understand the detailed implementation procedures. This will help ensure a smooth transition and full compliance with all relocation requirements.

?Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.

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