1.    Comprehensive Promotion of Electronic Invoices for Railway Passenger Transport

• Effective Date: November 1, 2024

  
  

• Main Content: The State Taxation Administration, the Ministry of Finance, and China State Railway Group jointly issued an announcement stating that as of November 1, 2024, electronic invoices will be fully promoted in the railway passenger transport sector to facilitate reimbursement for passengers and organizations.

  
  

PHC Additional Comments: This means that individuals and enterprises can directly obtain reimbursement Fapiao through the mobile 12306 application. However, invoices must be issued within 180 days. Foreign individuals in China can also apply for electronic reimbursement Fapiao after registering and verifying their identity on the mobile 12306 application.

2.    Establishment of Beneficial Ownership Information Filing System

• Effective Date: November 1, 2024

• Main Content: The People's Bank of China and the State Administration for Market Regulation jointly issued the "Management Measures for Beneficial Ownership Information," establishing and improving the filing system for beneficial ownership information. This move aims to optimize the business environment, enhance market transparency, and combat telecommunications and network fraud and other criminal activities.

PHC Additional Comments: If the ultimate beneficial owner is not recorded in the bank system or tax filing information system of an enterprise, it may affect the company's banking operations. For example, when a customer needs to update the legal representative’s passport associated with the corporate account, but the enterprise has not completed the beneficial ownership filing, the bank may will not proceed with the passport update until the beneficial owner’s information is provided.

3.    Removal of Foreign Investment Restrictions in the Manufacturing Sector

• Effective Date: November 1, 2024

• Main Content: The National Development and Reform Commission and the Ministry of Commerce released the "Special Administrative Measures for Foreign Investment Access (Negative List) (2024 Edition)," removing two items: “publishing printing must be controlled by Chinese parties” and “prohibiting investment in the application of traditional Chinese medicine processing techniques such as steaming, stir-frying, roasting, and calcining, and the production of confidential TCM formula products.”

4.    Implementation of the Regulations on the Filing and Review of Rules and Regulations

• Effective Date: November 1, 2024

• Main Content: The "Regulations on the Filing and Review of Rules and Regulations" expands the scope of filing, standardizes the filing procedures, clarifies the methods and time limits for review, improves the review matters, and refines the provisions for correcting regulations and rules, thereby perfecting the related systems and mechanisms for filing and review.

PHC Additional Comments: The new regulations introduce proactive review, special review, and joint review methods shall be applied by tax bureau. We anticipate that this will raise the requirements and the quality for the filing contracts and other supporting documents.

Summary 

In November 2024, many important new fiscal and tax regulations were indeed issued and implemented. From these new regulations, it can be seen that the Government hopes to strengthen supervision.

PHC Advisory is a company of  DP Group: an international professional services conglomerate of companies with approximately 100 experienced professionals worldwide. We offer comprehensive services in tax, accounting, and financial consulting, including financial supervision, financial audit, internal audit, internal control over financial reporting, and support for audited financial statements and annual audits, ensuring clients' financial transparency and compliance. 

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The content of this article is provided for informational purposes only, financial advice must be tailored to the specific circumstances on a case-by-case basis, and the contents of this article do not legally bind PHC Advisory with the reader in any way. 

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