Policy content

I. Taxation policy for new foreign trade services

1. Approved Income Tax Policy for Retail Export Enterprises in Cross-border E-commerce Pilot Zones

[Subject of application]

Cross-border e-commerce retail export enterprises (hereinafter referred to as "cross-border e-commerce enterprises") in the Integrated Cross-border E-commerce Pilot Zones (hereinafter referred to as "Integrated Pilot Zones")

[Policy content]

From 1 January 2020, for cross-border e-commerce enterprises in the Integrated pilot zone applying the "tax exemption without invoice" policy, if they meet the relevant conditions, they shall implement, on a trial basis, the approved method of levying and collecting enterprise income tax; enterprises shall accurately account for the total amount of their income, and adopt the method of approving and collecting enterprise income tax by means of the taxable income rate, which is uniformly determined in accordance with the taxable income rate of 4 per cent. The cross-border e-commerce enterprises implementing approved levy in the Integrated pilot zone  may enjoy the preferential policies on income tax for small and micro-profit enterprises if they meet the conditions of the preferential policies for small and micro-profit enterprises, and they may enjoy the preferential policies on tax-exempted income if the income they have obtained belongs to tax-exempted income as stipulated in Article 26 of the Enterprise Income Tax Law of the People's Republic of China.

[Conditions of application]

1. Integrated pilot zone means a comprehensive pilot zone for cross-border e-commerce approved by the State Council.

2. Cross-border e-commerce enterprises, which are enterprises that build their own cross-border e-commerce sales platforms or use third-party cross-border e-commerce platforms for e-commerce exports.

3. Cross-border e-commerce enterprises applying the Approved Enterprise Income Tax Method shall simultaneously meet the following conditions:

(1) Registered in the comprehensive pilot zone and registered the date, name, unit of measurement, quantity, unit price and amount of the exported goods in the online comprehensive service platform for cross-border e-commerce in the place of registration;

(2) The export of goods through the customs of the location of the pilot zone for e-commerce export declaration procedures;

(3) The exported goods do not obtain valid proof of purchase, and their value-added tax and consumption tax enjoy tax exemption policy.

[Policy basis]

Announcement of the State Administration of Taxation on Issues Relating to the Approved Collection of Enterprise Income Tax for Retail Exports in Comprehensive Pilot Zones for Cross-border E-commerce (Announcement of the State Administration of Taxation No. 36 of 2019)