- China’s Ministry of Finance and State Taxation Administration issued new rules on withholding and remitting VAT for individuals by domestic entities, effective November 1, 2026.
- If a domestic individual provides services such as R&D, software, design, consulting, film/TV production, cultural, or education services, the domestic entity paying for the services must act as the withholding agent and remit VAT.
- The scope of taxable transactions follows existing VAT scope rules and any future policy updates.
- “Domestic entity paying the consideration” means the domestic buyer in the taxable transaction, and “consideration” includes both cash and non-cash economic benefits.
Source: lexiscn.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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