China

事关个人所得税！财政部、税务总局、证监会等三部门发布

STCN | Local Language | News | Jan. 23, 2026 | Regulation

On January 21, 2026, the Ministry of Finance, State Taxation Administration, and China Securities Regulatory Commission jointly announced the continuation of tax policies for the pilot domestic issuance of depositary receipts (CDRs) by innovative enterprises. From January 1, 2026, to December 31, 2027, individual investors will be temporarily exempt from personal income tax on price-differential gains from transferring CDRs of innovative enterprises.

During the same period, a differentiated personal income tax policy will apply to dividend income received by individual investors holding CDRs. Tax withholding and payment responsibilities fall on the domestic depositary institution, which must also file detailed reports with the tax authorities. Foreign tax credits may be granted for dividends already taxed abroad, according to relevant laws and bilateral tax treaties.

For corporate investors, price-differential gains and dividend income related to CDRs of innovative enterprises will follow existing enterprise income tax policies for share transfers and dividends. Public securities investment funds are temporarily exempt from enterprise income tax on these gains and dividends. Qualified foreign institutional investors (QFII) and renminbi qualified foreign institutional investors (RQFII) will treat such gains and dividends as income related to the transfer or holding of the underlying shares of the CDRs for enterprise income tax purposes.

The announcement defines "CDR of innovative enterprises" as securities issued domestically by a depositary based on overseas shares, meeting the pilot enterprise criteria set by the State Council and CSRC guidelines. These CDRs represent rights in the underlying overseas securities.

Peoples Daily | English | News | Jan. 23, 2026 | UndeterminedTaxes

In 2025, China's manufacturing sector accelerated its shift toward intelligent and green development, solidifying its role as a key stabilizer of the national economy. The sector's sales revenue growth exceeded the national average by 1.7 percentage points, reaching 29.7 percent of the country’s total sales revenue, a 0.5-percentage-point increase from 2024.

Procurement of automated and digital equipment by manufacturing enterprises rose by 11.3 percent and 10 percent respectively, illustrating progress in intelligent transformation and digital upgrading. The intelligent equipment manufacturing industry's sales revenue jumped 28.1 percent, supported by output increases in industrial robots (17.4 percent) and special operation robots (42.1 percent).

The share of high-energy-consuming manufacturing enterprises' sales revenue declined by 1.1 percentage points, indicating ongoing industrial structure optimization. Spending on environmental governance services by manufacturing enterprises also increased steadily. Moreover, procurement of digital technologies surged 10.4 percent in value, an acceleration of 3.5 percentage points compared to the previous year.

Going forward, China's tax authorities plan to implement preferential tax and fee policies to support the sector's transformation and upgrading. They will continue optimizing tax and fee services to promote the high-quality development of the manufacturing industry.

Xinhua | English | News | Jan. 23, 2026 | UndeterminedTrade Issues and Numbers

In 2025, Jiangsu Province in China recorded a total foreign trade value of 5.95 trillion yuan (849.8 billion U.S. dollars), marking a 6 percent increase from the previous year. This trade volume accounted for 13.1 percent of China's total import and export value.

Exports of mechanical and electrical products in Jiangsu grew by 11.6 percent year on year to 2.8 trillion yuan, making up 70.7 percent of the province's total exports. Specific sectors saw notable growth, with exports of electrical equipment reaching 239.96 billion yuan, up 18 percent, and ship exports hitting 142.75 billion yuan, increasing by 37 percent.

Jiangsu is home to nearly 43,000 foreign-invested enterprises, whose combined imports and exports totaled 2.78 trillion yuan in 2025, rising 6.2 percent from the previous year and representing 46.7 percent of the province's overall trade.

The province's international trade ties also expanded, with trade between Jiangsu and countries involved in the Belt and Road Initiative growing by 11.3 percent year on year to 2.98 trillion yuan in 2025.