Two Authorities Issue Administrative Measures for the Withholding and Remittance of VAT on Individuals by Domestic Entities

The Ministry of Finance (MOF) and the State Taxation Administration (STA) have jointly issued the Administrative Measures for the Withholding and Remittance of Value-added Tax on Individuals by Domestic Entities (the "Measures"), and the STA subsequently released the Announcement on Relevant Filing Matters Concerning the Withholding and Remittance of Value-added Tax on Individuals by Domestic Entities, both effective from November 1, 2026.

According to the Measures, where a domestic individual provides research and development services, software services, design services, consulting services, radio, film and television program (work) production services, cultural services, or educational services, the domestic entity paying the consideration shall be the withholding agent and shall withhold and remit value-added tax (VAT) in accordance with the Measures. The Measures specify that the specific scope of taxable transactions applicable shall be subject to the Announcement of the Ministry of Finance and the State Taxation Administration on Matters Concerning the Specific Scope of Value-Added Tax Levying. Where the relevant policies are subsequently adjusted, the adjusted policies shall apply. The Measures further clarify that a domestic entity paying the consideration means a domestic entity that is the purchaser in a taxable transaction. Consideration includes the entire amount of consideration corresponding to economic benefits in monetary and non-monetary forms.



(Source: https://fgk.chinatax.gov.cn/zcfgk/c102416/c5252181/content.html

https://fgk.chinatax.gov.cn/zcfgk/c100012/c5252176/content.html)

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