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State Taxation Administration

Policy & Legal Updates
Source: Emirates News Agency (WAM)

China to Reduce VAT Export Rebate on New Energy Vehicles to Nine Percent

China's Ministry of Finance and the State Taxation Administration announced plans to cut the value-added tax export rebate for new energy vehicles from 13 percent to 9 percent, taking effect April 1, 2027. In addition, export rebates on battery products will be fully eliminated starting January 1, 2027. Existing consumption tax refund and exemption mechanisms will remain unaffected.

Policy & Legal Updates
Source: Emirates News Agency (WAM)

China to Cut NEV VAT Export Rebate to 9% in April 2027

China's tax authorities announced a reduction in the value-added tax export rebate for new energy vehicles from 13 percent to 9 percent, effective April 1, 2027. The measure affects battery electric and plug-in hybrid vehicle shipments to foreign markets including the Gulf. Domestic consumption tax refund and exemption structures remain unchanged.

Policy & Legal Updates
Source: China Briefing

China Tightens Offshore Trust and Overseas Income Tax Rules for Resident Individuals

China has implemented strict individual income tax rules for offshore trusts, imposing a 20 percent tax rate across asset funding, trust income, and distributions. The Ministry of Finance and State Taxation Administration established a 90-day transitional compliance window closing on October 22, 2026, allowing taxpayers to settle historical trust liabilities without late surcharges. Cross-border tax enforcement is increasingly supported by automated data exchange under the Common Reporting Standard.

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