State Taxation Administration: Achievements in Regulating Illegal Investment Promotion and Tax-Related Issues by 2025

WealthCoffee · 2026-03-06T13:42:19+00:00

The State Taxation Administration will carry out special governance in 2025, targeting local illegal investment promotion activities, pushing inspection clues and promptly addressing issues, and promoting the revision of relevant agreements. In March 2026, the governance results will be announced, emphasizing that local tax authorities must not participate in illegal activities, and a monitoring system will be established for regular analysis.

WealthCoffee

2026-03-06 13:42:19

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[Caixin] Regarding the regulation of local illegal investment promotion and service for the construction of a unified national market, the tax authorities will carry out special governance in 2025. The State Taxation Administration (STA) has sent a total of 389 clues about inspection issues to tax authorities at all levels throughout the year. Issues confirmed to be problematic after verification will be promptly investigated and corrected. The STA will promote the abolition or modification of tax-related agreements related to illegal investment promotion by local governments and will promptly report major issues to relevant departments for coordinated rectification.

On March 2, 2026, the STA disclosed the above policy measures and achievements. During the special governance, the STA explicitly requires local tax authorities not to scheme, participate, cooperate, or turn a blind eye to illegal tax-related investment promotion activities. Relying on big data in taxation, a monitoring indicator system will be established to focus on abnormal tax and fee declarations, abnormal income, and abnormal tax reductions and exemptions, conducting regular monthly monitoring and analysis.

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