Guangdong Tax Services Help Chinese Companies Go Global

By Chen Weizhan,Huang Chufang

China’s first tax cooperation office serving Portuguesespeaking countries and regions has been established in Hengqin,Guangdong Province,to provide diversifeid tax services for enterprises in the Guangdong-Hong Kong-Macao Greater Bay Area seeking overseas development.

“Over the years,China has explored smart taxation driven by data and technology,”said Chen Liexin from the International Taxation Management Division of Guangdong Provincial Tax Service,the State Taxation Administration (STA) of China,during an exchange activity for young tax officers from the BRICS countries of Brazil,Russia,India,China,and South Africa,on September 28,2023.

“We are happy to see that most taxpayers now choose to file taxes online instead of going to tax counters.” This cross-border tax service for non-resident enterprises,as presented at the event,was selected as China’s Best Practice Case for BRICS Tax Affairs.

Launched on E-tax China,the national online tax filing system in this April,the crossborder tax service enables non-resident enterprises to register for tax filing and other tax-related affairs.Foreign taxpayers can apply for a Tax Identification Number on the platform after registering by email,submitting relevant documents,and obtaining approval.Then,they can use a unique E-tax China account to access online tax services in any administrative area in China.

Over the past decade,Guangdong Provincial Tax Service has introduced a series of innovative measures to help Chinese companies carry out smooth overseas operations following the principles of extensive consultations,joint contributions,and shared benefits. It launched China’sfirst green channel for tax-related risk prevention and dispute resolution,helping cross-border taxpayers reduce their excess tax burden by 23.49 million yuan (US$3.2 million).A pioneering initiative to facilitate cross-border RMB tax payments has been established,bringing much convenience for overseas non-resident taxpayers.The initiative was included in the seventh round of Free Trade Pilot Zone best reform practice cases by the State Council of China.What’s more,Guangdong has taken the lead in building a one-stop service platform providing information disclosure and non-contact tax services to benefit both Chinese and foreign enterprises.

A new initiative from Huizhou tax authorities,the Huizhou “Going Global and Investing in China” Tax Service Office is inaugurated in the China-Korea (Huizhou) Industrial Park in Guangdong Province on August 25,2023.(VCG)

“We have been actively implementing preferential tax treaties with 112 countries and regions,especially those participating in the Belt and Road Initiative (BRI),” said Liu Li,head of the International Taxation Management Division of Guangdong Provincial Tax Service.“We are committed to offering tailor-made and well-targeted policy advice to companies and helping them benefit from our preferential cross-border tax measures when going global or investing in China.”

Guangdong Provincial Tax Service has been committed to exploring innovative approaches in order to optimize its services.

Guangdong Kin Long Hardware Products Co.,Ltd.was one of the first manufacturing companies in Dongguan,a Guangdong city,to launch overseas operations.“Before our first overseas office was established,Guangdong tax authorities sent us a foreign investment and tax guide,which enabled us to better understand tax policies and tax-related risks in other countries,relieved our worries,and inspired great confidence in our overseas expansion,” recalled Kin Long Finance Director Zou Zhimin.Now,Kin Long operates more than a dozen subsidiaries all around Southeast Asia.

To enjoy preferential tax treatment in host countries,Chinese companies are required to submit their Chinese Tax Residency Certificate to local authorities.Thanks to sustained efforts by Guangdong Provincial Tax Service,eligible enterprises can now obtain an electronic certificate instantly instead of waiting 10 work days as they did in 2017.Statistics show that in the past 10 years,Guangdong Provincial Tax Service has issued more than 2,000 such certificates to Chinese firms operating in 62 countries,helping them enjoy tax exemptions or reductions of nearly 6 billion yuan(US$820 million).

Guangdong Provincial Tax Service has been committed to exploring innovative approaches in order to optimize its services.In 2023,it has organized a series of BRI-themed publicity events in the province.“In the context of globalization,such activities recognized and satisfied the needs of local companies like us to engage in international operations,” said Ye Xiaoping,tax manager of Huizhou Desay Battery Co.,Ltd.,while attending the event.“The tax authorities helped us with feasibility studies and risk predictions for overseas investment and better prepared us for risk response.Practical advice and tips in their tax guide books helped boost our confidence in overseas development.”

According to Jiang Yuliang,member of the Party Committee and deputy head of Guangdong Provincial Tax Service,Guangdong Provincial Tax Service will take the 10th anniversary of the BRI as a new starting point to build more platforms to facilitate exchanges between tax services and enterprises going global.And Guangdong tax services will focus on sound tax practices in win-win international cooperation and take concrete steps to safeguard national rights and interests,demonstrating responsibilities of Guangdong tax services in promote higher-level opening-up in China and serve the country’s major development initiatives.