Five ministries issue joint notice to curb proxy export tax evasion
2025-04-01 15:12:48 [Print]
On March 28, China's State Taxation Administration, the Ministry of Finance, the Ministry of Commerce, the General Administration of Customs, and the State Administration for Market Regulation jointly issued the Announcement on Optimizing Services and Standardizing the Management of Taxable Goods Exports. This move marks a shift from sporadic enforcement actions to a formal regulatory framework, signaling a fundamental crackdown on "proxy exports" used for tax evasion.
Article 4 of the announcement explicitly requires taxpayers to complete registration verification with the tax authorities via the electronic tax bureau or tax service office before declaring taxable goods for export to customs. Taxpayers who have not completed this verification or are flagged as deregistered, abnormal, missing, or non-compliant must first resolve their tax-related issues before proceeding with customs procedures. Article 5 further stipulates that before applying for deregistration with the market regulation authorities, exporters of taxable goods must first complete tax deregistration and obtain a tax clearance certificate from the tax authorities.
This announcement serves as a comprehensive reinforcement of previous measures against underpriced proxy export schemes used for tax evasion. Analysts interpret the joint issuance of this regulation as a direct response to tax-dodging exports, particularly in the steel sector, where proxy export practices have led to massive export volumes and significant tax losses, making it a key target of this crackdown.
Article 4 of the announcement explicitly requires taxpayers to complete registration verification with the tax authorities via the electronic tax bureau or tax service office before declaring taxable goods for export to customs. Taxpayers who have not completed this verification or are flagged as deregistered, abnormal, missing, or non-compliant must first resolve their tax-related issues before proceeding with customs procedures. Article 5 further stipulates that before applying for deregistration with the market regulation authorities, exporters of taxable goods must first complete tax deregistration and obtain a tax clearance certificate from the tax authorities.
This announcement serves as a comprehensive reinforcement of previous measures against underpriced proxy export schemes used for tax evasion. Analysts interpret the joint issuance of this regulation as a direct response to tax-dodging exports, particularly in the steel sector, where proxy export practices have led to massive export volumes and significant tax losses, making it a key target of this crackdown.
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