Dipabangkit · Batak Simalungun

Liaoning Tax Authorities Expand Services for Businesses: What Foreign Founders Need to Know

Recent developments in Liaoning's tax system show a focus on resolving taxpayer problems and delivering services efficiently. For foreign founders registering a company in China, these changes signal a more supportive environment for tax compliance and dispute resolution.

Practical takeaways for foreign founders

Recent developments in Liaoning province's tax system, as reported by China's State Taxation Administration, highlight efforts to improve taxpayer services and resolve disputes. For foreign founders considering company registration in China, these changes indicate a more responsive tax environment, with potential benefits for compliance and problem-solving. Below, we summarize the key points relevant to setting up and running a business in China, based on the official source.

1. Enhanced taxpayer services and dispute resolution

Liaoning tax authorities have been focusing on resolving taxpayer difficulties and providing practical services. For foreign founders, this means that tax issues encountered during company registration or ongoing operations may be addressed more efficiently. Specific initiatives include:

• Intelligent 'inquiry-and-handling' windows: In Huludao, tax authorities have developed intelligent windows that handle complex tax issues. Since the second batch of thematic education, these windows have processed over 50 difficult cases with a 100% satisfaction rate. For foreign founders, this suggests that tax inquiries and problems can be resolved through streamlined, technology-enabled channels.
• 'Fengqiao-style' tax offices: Liaoning is promoting the construction of 'Fengqiao-style' tax offices (分局、办税服务厅) based on guidelines from the State Taxation Administration. These offices aim to resolve tax disputes promptly and protect taxpayer rights. Fuxin city, for example, has established 'New Feng' windows and rooms in 38 tax offices and service halls to address tax disputes. This indicates a structured approach to dispute resolution that foreign founders can leverage if conflicts arise.
• Project butler service: The province has deepened a 'project butler' tax service mechanism, with 1,237 tax officials providing dedicated services to nearly 400 major projects, resolving over 300 practical issues and implementing tax incentives exceeding 1 billion yuan. While aimed at major projects, this reflects a broader commitment to personalized assistance that foreign founders might access for significant investments.

2. Tax policy implementation and incentives

Liaoning tax authorities are actively implementing tax and fee reduction policies. In the past year, the province added tax and fee reductions, refunds, and deferrals exceeding 20 billion yuan. For foreign founders, this means potential tax savings and incentives are being actively delivered. Specific measures include:

• Tax refunds: Companies like Liaoning Xinhualong Dayou Molybdenum Industry received over 70 million yuan in VAT credit refunds, alleviating funding pressures. This shows that tax refund mechanisms are functioning and can benefit eligible businesses.
• Deferred tax payments: Shenyang Zhongdonggang Commercial Complex project obtained a deferred tax payment of over 70 million yuan after initial application errors, with assistance from a project butler team. This highlights the availability of deferral options and support in navigating application processes.
• 'No-application' benefits: The province is deepening 'no-application' reform, meaning some tax benefits may be granted automatically without the need for application. Foreign founders should be aware of such streamlined processes to reduce administrative burden.

3. Proactive government engagement

Liaoning tax officials are engaging directly with businesses through activities like 'leading cadres entering parks and enterprises' and 'walking through processes.' For example, officials visited enterprises to explain tax policies, resolve tax issues for major investment projects, and address financing difficulties via 'bank-tax interaction.' These initiatives suggest that foreign founders can expect outreach and support from tax authorities, potentially easing the registration and operation process.

4. Implications for company registration

While the source focuses on tax services, these developments have indirect implications for foreign founders registering a company in China:

• Tax compliance support: Enhanced services mean that foreign founders can access guidance on tax registration, filing, and incentives more easily.
• Dispute resolution: The emphasis on Fengqiao-style offices indicates that tax disputes can be resolved locally and efficiently, reducing risks for foreign investors.
• Policy implementation: Active delivery of tax reductions and refunds suggests a favorable environment for businesses, with potential cost savings.

5. Conclusion

Liaoning's tax reforms demonstrate a commitment to improving taxpayer services and implementing supportive policies. For foreign founders, these changes can facilitate company registration and ongoing compliance. However, specific procedures and requirements for foreign-invested enterprises may vary, and it is advisable to seek professional advice.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.