Recently, there has been increasing discussion in the cross-border e-commerce community regarding “2%/4% assessed taxation.” Many sellers on Amazon, TikTok, Temu, and independent websites are asking: Can all cross-border e-commerce businesses be assessed under the 4% method? Can they proactively apply for this assessment if they haven’t received a notice from the tax authorities? Once assessed, will issues such as zero tax returns, export via purchased invoices, and insufficient cost invoices all be resolved at once?

Let’s start with the conclusion: The 2%/4% fixed-rate tax assessment is not a universal policy that all cross-border sellers can proactively apply for, nor is it a “get-out-of-jail-free card” that resolves all historical tax issues.

It is more like a risk management approach for corporate income tax purposes adopted by some cross-border sellers when their platform revenue is identified, there are anomalies in historical reporting, accounting records are incomplete, or costs cannot be accurately calculated.

One,The 2%/4% everyone has been discussingApproved levyAfter allWhat is it?

The recent market discussion surrounding “2%/4%” has largely centered on certain cross-border sellers’Handling of Existing Business in 2025.

Based on current feedback from the field, these situations tend to arise in the following scenarios:

• The company has actual platform revenue, but in the past, it consistently filed zero or low corporate income tax returns;
• Discrepancies between platform transaction volume, payment collection volume, and reported revenue;
• Under multi-store, store cluster, Saiwei, or semi-consolidated models, it is difficult to trace revenue and costs;
• The accounts are disorganized, and the cost records, revenue vouchers, and expense vouchers are incomplete, making it difficult to audit the books;
• The company has already been subject to risk control measures or audits by the tax authorities, or has been asked to submit documentation.

Therefore, the current terms “2%” and “4%” are more accurately described as a practical approach used by tax authorities to address certain corporate income tax issues when they have information on a platform’s revenue, detect anomalies in tax filings, and determine that accounting records and supporting documents are incomplete.

It’s not as simple as “a policy benefit is available, and all sellers can apply.”

take note of: Announcement No. 36 of 2019, regarding policy-based assessed taxation(math.) genusThis refers to the practice of applying a fixed-rate corporate income tax assessment to eligible cross-border e-commerce retail export enterprises in comprehensive pilot zones, in conjunction with policy arrangements such as “tax exemption without invoices.” The current discussions regarding 2%/4% primarily concern the tax administration approaches adopted by certain regions and enterprises in addressing historical risks.

二, The 9 Questions Sellers Care About Most

1. Under what circumstances might the 2%/4% fixed-rate tax assessment apply?

Currently, this primarily targets businesses subject to risk control or audits, and is often related to unclear accounting records, difficulties in cost calculation, complex multi-store structures, and discrepancies between reported revenue and platform revenue. Not all cross-border sellers are eligible to apply voluntarily.

2. At what sales volume does a business become flagged as high-risk?

There are currently no publicly available uniform standards. Based on market feedback, the first wave of focus has primarily been on sellers with high sales in Q3 and Q4 of 2025, with companies generating over 10 million more likely to attract attention; subsequently, sellers generating over 1 million have also been included in risk notifications. The key factor is not just the amount, but whether there are significant discrepancies between platform revenue, cash receipts, and reported figures.

3. What is the difference between being subject to risk control and being subject to an audit?

Risk control typically involves the system detecting anomalies and requiring the company to provide explanations, supplementary information, or adjustments; an audit, on the other hand, signifies the initiation of a more formal and rigorous inspection process. While there is usually room for communication during the risk control phase, the scope for proactive action is significantly reduced during the audit phase.

4. Could there be a retroactive investigation?

A routine risk control review does not necessarily involve a retrospective investigation, but once an audit is initiated, it may entail a longer-term historical review and could result in fines, late payment penalties, and other consequences. The sooner you organize your documents and proactively communicate, the better you can manage the risks.

5. If I haven't received a notification, can I apply on my own?

You can try to communicate with them, but this does not guarantee that your case will be accepted, nor does it guarantee that it will be assessed according to the 2%/4% standards. Currently, in most cases, the tax authorities first identify risks through their system, then screen and contact businesses, request the submission of materials, and finally determine whether a tax assessment is appropriate. Sellers who have not received a notification should, in particular, conduct a self-inspection of their data and documentation first.

6. Are 2% and 4% tax rates?

No. 2% and 4% typically refer to taxable income rates or profit margins, not the final corporate income tax rate. The general logic is as follows: taxable revenue × assessed taxable income rate = taxable income; taxable income × applicable corporate income tax rate = corporate income tax payable. It cannot be simply interpreted to mean that only 2% or 4% is paid on sales revenue.

7. Is it possible to calculate costs retroactively and record them on a provisional basis?

This is not recommended. Inflating costs without supporting invoices or retroactively calculating estimated costs to meet a specific profit margin may be deemed as fabricating false tax calculation bases. Tax authorities now conduct a comprehensive review of platform orders, settlements, third-party payments, bank statements, purchase invoices, logistics data, customs declaration documents, and tax filing data; retroactively calculating costs is likely to result in inconsistencies.

8. Once the audit is complete, will the VAT issue be resolved as well?

No. The 2%/4% primarily addresses corporate income tax; it does not resolve issues such as value-added tax (VAT), export tax exemptions, export tax rebates, export transactions under another party’s name, or off-the-books receipts. If customs declarations were not filed in the company’s name, there is no complete customs declaration form, and the company cannot prove that the export revenue was generated through a compliant entrusted export arrangement, the revenue may still be treated as deemed domestic sales. For small-scale taxpayers, this may involve VAT under Article 1%; for general taxpayers, it may involve VAT under Article 13%.

9. Is it safe once it’s been approved?

That’s not the correct way to understand it. The tax assessment may simply reflect the outcome of a specific period, tax type, or stage. If issues such as unreported platform revenue, payments received into personal accounts, export transactions with fake invoices, the mixing of multiple business entities, or continued filing of zero tax returns persist, they may trigger risk alerts again.

IV. Common Pitfalls for Cross-Border Sellers

Misconception 1: Viewing the 2%/4% as a low-tax benefit available to all sellers. In reality, it is more of a risk management strategy than a universal benefit.

Misconception 2: Confusing the 2%/4% system with Announcement No. 36 of 2019. The former is based primarily on current tax administration practices, while the latter specifies clear conditions for comprehensive pilot zones and retail exports.

Misconception 3: Believing that a fixed-rate tax assessment can address all tax categories. Corporate income tax is one category, while value-added tax, export customs clearance, and tax exemptions and refunds are another; they cannot be handled together.

Misconception 4: Thinking that receiving a notification of approval means you’re in the clear. Approval is not the end goal; if your subsequent business operations are not in compliance, risks will continue to accumulate.

Misconception 5: Temporarily supplementing documentation or retroactively adjusting costs to reduce the tax burden. Tax authorities do not look at individual forms; rather, they examine the overall consistency between the platform, funds, logistics, invoices, customs declarations, and tax filings.

Five,seller (of goods)What should we do right now?

First, reconcile the platform’s revenue with the reported revenue. Compare the platform’s sales, settlement amounts, third-party collections, bank deposits, and reported revenue item by item to determine if there are any obvious discrepancies.

Second, compile a complete chain of evidence. This includes platform transaction records, settlement statements, bank statements, third-party payment records, purchase contracts and invoices, logistics documentation, customs declaration forms, records of refunds and order cancellations, documentation showing the relationship between the online store and the corporate entity, and documentation regarding the allocation of revenue and costs across multiple stores.

Third, determine the appropriate process. Businesses should first assess whether they are better suited for audit-based taxation, whether they are subject to tax assessment, and whether there are any risks related to VAT and export documentation—rather than immediately asking, “Can we use the 4% method?”

Fourth, do not blindly amend your tax returns. Before conducting a thorough calculation, hastily adding revenue, amending tax returns, or retroactively adjusting costs may result in inconsistencies between income tax and value-added tax calculations, which could actually increase your risk.

Fifth, prepare a communication plan for the tax authorities in advance. The focus of the communication should not be on asking for the outcome, but rather on clearly explaining the company’s business model, how revenue is generated, the reasons for discrepancies, gaps in cost data, the export chain, and the follow-up corrective measures.

VI. What kind of support can Qi Cai Ying provide you?

In response to the 2%/4% fixed-rate taxation for cross-border e-commerce and the resulting handling of historical tax risks, Qicaiying can provide support to businesses in the following areas.

1, Tax Risk Assessment and Tax Burden Estimation

Qicaiying can assist companies in conducting risk assessments of historical data, including: calculating discrepancies between platform revenue and reported revenue; assessing corporate income tax exposure; evaluating risks associated with VAT on deemed domestic sales; estimating tax burdens under different scenarios for small-scale and general taxpayers; and breaking down risks for single-store, multi-store, and store-cluster models.

Help companies understand their risk profile before they begin communicating.

2, Review of Past Accounts and Reconstruction of Revenue

The problem for many cross-border sellers isn’t a lack of business, but rather that their historical financial records haven’t been fully reconstructed.

Qicaiying can assist businesses by: organizing historical platform transaction records, reconstructing store revenue, matching payment recipients, compiling cost and expense vouchers, and distinguishing between reported, unreported, and underreported revenue—all to produce accounting working papers that are clear and easy to explain and discuss.

3, Specialized Analysis of Multi-Store, Store Groups, and the Saiwei Model

For sellers operating multiple stores, companies, or business entities, Qicaiying can assist with: clarifying the relationships between stores and corporate entities; determining whether revenue needs to be allocated to the respective store companies; designing cost and expense allocation logic; preparing explanations of multi-store operations; compiling detailed breakdowns of store revenue and cost/expense allocations; and assessing the tax risks associated with the existing structure.

4, Preparing Materials for Communication with the Tax Authority

If a company has already received a risk notice or a request to submit documentation, Qicaiying can assist in preparing the following: a statement on the company’s situation, an explanation of revenue discrepancies, an explanation of costs and expenses, a statement on multi-store operations, a checklist of required documents, an outline for communication with the tax authorities, and recommendations for addressing the risks.

When communicating with tax authorities, one cannot rely solely on verbal explanations; rather, a comprehensive set of supporting materials and a sound logical framework are essential.

5, Follow-up Compliance Restart Plan

The fixed-rate tax assessment is merely a way to address past issues. What really matters is ensuring we don’t fall into the same pitfalls in the future.

Qicaiying can assist businesses in designing long-term compliance plans, including: designing export customs clearance processes, standardizing payment collection channels, streamlining corporate structures, managing cost documentation, establishing financial accounting systems, standardizing VAT and corporate income tax filings, and developing long-term compliance solutions for single-store, multi-store, and store-cluster models.

put at the end

The 2%/4% assessed taxation scheme is not simply an opportunity for a lower tax burden, but rather a window for the centralized resolution of historical tax issues in the cross-border e-commerce sector once they have come to light. What sellers really need to do is not blindly ask, “Am I eligible for the assessed tax method?” nor continue filing zero returns while waiting for further notice, but rather first get their revenue, invoices, funds, customs declarations, and accounting records in order.

If your business has already received a risk alert, or if you have long-standing issues such as discrepancies between platform revenue and reported income, the use of the same business entity across multiple stores, export transactions with purchased invoices, insufficient cost invoices, or a history of zero tax filings, we recommend conducting a targeted tax risk assessment as soon as possible.