New taxation regulations in China: How to choose a reliable service supplier in the light of the 2025 regulations

chiny24.com 2 months ago

From May 1, 2025 In China, fresh government on professional taxation services will enter into force – Administrative taxation Service Regulations 2025 on Tax-related Professional Services (for Trial Implementation). These changes introduce a comprehensive assurance strategy (TSC – Tax Service Credit) and smart supervision, with the aim of expanding transparency and reducing the risks associated with incorrect settlements. For abroad companies operating in China, knowing these regulations is crucial, as the choice of an inappropriate taxation service supplier can lead to serious legal and financial consequences.

Evolution of the Chinese taxation regime

The fresh rules are the consequence of the multi-annual improvement of Chinese taxation law:

2017 – Introduction Measures on Regulation of Professional Tax-related Services (Trial Implementation)which set out the basic requirements for registration and reliability assessment.
2019 – Announcement STA Announcement [2019] No. 43, improving the credit score strategy and reducing compliance loads.
2023 – Publication Basic Standards for Tax-related Professional Services and Code of Professional Ethicswhich have strengthened the self-regulation of the industry.

As indicated by Qian Zhou in the analysis for China Briefing:

“The strategy evolved from basic supervision to a precise, intelligent risk-based model. The fresh provisions of 2025 institutionalise a dynamic assessment of reliability and introduce real-time monitoring."

Key changes in regulations from 2025

1. Dynamic reliability assessment strategy (TSC)

Any company providing taxation services will receive unique QR codeto verify its current credit status. strategy assigns suppliers to five levels of credibility:

PointsTSC Level

400+	TSC 5
300-399	TSC 4
200-299	TSC 3
100–199	TSC 2
< 100	TSC 1

The assessment shall be calculated on the basis of 9 key indicatorsincluding:

Quality of service (120 points)
Compliance with the real-name registration (90 points)
Assessment of customers and taxation offices (50 points)
Credit past (100 points)

2. Classification of taxation services

The fresh rules divide taxation services into 2 categories:

General services (e.g. taxation returns, consultations) – require a supplier with a minimum level TSC3.
Specific services (e.g. audits, taxation certifications) – require entities with TSC4 or higher and additional qualifications.

3. Enhanced penalties and supervision

For serious infringements, they threaten:

Public disclosure of offences
TSC Level Reduction
Placing in the monitored list
Cancellation
Fines and Legal Responsibility

How to test the reliability of the taxation service provider?

The Chinese taxation authorities have made available respective authoritative verification tools:

Website of the taxation office – section “Tax Services – Publicity of Tax-related Professional Service Institutions”.
Scanning QR TSC code – allows you to check the current assessment and past of infringements.
Government applications For example Electronic taxation Bureau (电子税务局) or Individual Income taxation App (个人所得税app).

Search results include:

Company name
Current TSC score
Address of the premises
Number of customers supported

Business recommendations

Select suppliers according to the hazard level – for specialist services require TSC4+.
Monitor changes in credit assessment – a decrease in scoring can signal problems.
Document Cooperation – require full taxation documentation to defend yourself from checks.

In conclusion:

New regulations from 2025 are not only tightening requirements, but besides a tool to build trust in the taxation services sector. For abroad companies, this means greater transparency, but besides the request for careful selection of partners. As the experts emphasize:

“The choice of a advanced TSC supplier minimises the hazard of taxation disputes and compliance costs.”

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