If your business has consistently filed zero tax returns throughout its history, or if your accounting records are unclear and you’re unable to accurately calculate costs, then “fixed-rate taxation” is likely the term you need to understand most right now. It is not some kind of “gray area,” nor is it a temporary stopgap measure—it is a tax collection method explicitly permitted by tax law, specifically designed for situations where taxable income cannot be accurately calculated.

This article clearly explains the key issues surrounding the fixed-rate tax assessment system.

I. What Is a Fixed-Rate Tax Assessment?

Simply put, the assessed tax collection method involves the tax authority directly determining a taxable income rate based on the scale of your income, then multiplying that rate by the tax rate to calculate the amount of income tax you owe.

You don't need to provide a detailed breakdown of costs; you aren't required to calculate your actual profit—the tax authorities will simply calculate it on a pro-rata basis.

This is currently one of the most important compliance measures for cross-border e-commerce sellers to address the issue of historical zero declarations.

II. Who is eligible to apply?

Based on recent practical experience, the fixed-rate tax assessment method is primarily applicable to the following categories of sellers:

✔ Using the Saiwei model or a multi-store model, the store’s company has never filed a tax return in its history

✔ The accounting records are unclear, making it impossible to accurately calculate costs and expenses.

✔ Flagged by the system's risk control measures or flagged by the tax authorities

✔ The business is operating normally, but its historical accounting records are in disarray, making it impossible to assess taxes based on an audit.

Note: Sellers who have not received a risk notification may apply, but approval is currently difficult to obtain; the tax authority primarily prioritizes sellers flagged by the system.

III. In which cities can this be done?

There are now cases of assessed taxation in many parts of the country, and Qi Cai Ying has successfully assisted clients in the following regions with this process:

·Southern China: Shenzhen (most districts), Guangzhou

· East China: Shanghai, Ningbo, Xiamen

·Central China/Southwest China: Wuhan, Chengdu

· Fujian: Various regions in Fujian

Special Note: Approval for large stores in Nanshan District, Shenzhen, is currently restricted, and the criteria are quite strict; however, most other areas in Shenzhen are more supportive of approving large stores.

Real-Life Case Study: A client in Longgang, Shenzhen, has8A retail company, with only1After receiving a call from the tax authority regarding the assessment and discussing the matter with the assigned tax officer, the rest...7All stores in the same area have completed the verification process.

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Cell phone: 18676749275 ｜ WeChat: qcygscszk

IV. What is the tax rate?

Implementation standards vary by region, but the general trends are as follows:

Tax Calculation Example: GMV of 10 million; taxable income rate determined at 4%; corporate income tax rate for small and micro enterprises at 5%:

Tax payable = 10 million × 4% × 5% = 20,000 yuan

(For the same 10 million GMV, if taxes are assessed based on an audit, and assuming an industry-average net profit margin of 20%, the tax liability would be approximately 200,000 yuan or more.)

V. Should I Apply Proactively or Wait for a Notification?

In most regions, the general practice is to wait for notification from the tax authority or a system risk alert; in a few regions, taxpayers may proactively apply and negotiate.

✔ If you have received a notice or phone call from the tax authority: Contact your assigned tax officer as soon as possible to clarify the specific procedures for the assessment and the required documents. Do not delay.

✔ If you have not yet received a notice but there are gaps in your filing: You may proactively contact your competent tax authority for guidance, and at the same time, organize your platform income and domestic tax data clearly.

✘ Just waiting and doing nothing: Risks are mounting, and what you may end up with isn’t a tax assessment notice, but an audit.

The Shenzhen Case Serves as Yet Another Reminder: A Single Notice Can Make a Difference8The key to successfully completing the verification process for all our stores lies in proactive communication, clear data, and seizing the right timing.

Cell phone: 18676749275 ｜ WeChat: qcygscszk

VI. What Should Be Noted After the Tax Assessment Is Finalized?

Many sellers think that once the assessment is complete, everything is taken care of, but that’s not actually the case.

✔ Approval does not constitute an exemption from accounting obligations. Business documents (withdrawal data, bank statements, platform records, and procurement and logistics vouchers) must still be retained for future reference.

✔ Q3 and Q4 cannot be filed together. Clients in Luohu and Longhua, Shenzhen, have already been asked to split and correct their filings for this reason; be sure to file separately by quarter.

✔ The reported data is based on the information provided by the platform. It is not solely based on the “Summary” section in the store’s backend; the tax authority relies on the data submitted by the platform to the tax authority.

✘ Do not retroactively record costs based on the approved ratio. Retroactively calculating costs without supporting invoices may constitute an artificial inflation of the tax base and pose compliance risks.

common problems

Q: Is it possible to apply for a fixed-rate tax assessment in Shenzhen?

A: It is possible, but the situation varies by area. Most areas in Shenzhen are quite supportive of large stores; however, Nanshan District in Shenzhen currently has stricter requirements. A specific assessment will depend on your store’s location, size, and current status.

Q: Which is more cost-effective: fixed-rate taxation or audited taxation?

A: It depends. If your actual profit margin is very low (e.g., below 5%), the effective tax burden under the audited assessment method may actually be lower. However, most sellers with unclear historical accounting records find it difficult to undergo an audited assessment, and the risks are higher. The fixed-rate assessment method is the safer choice during the current grace period. I recommend calculating your actual tax burden first before making a decision.

Q: Will there be a written notice regarding the fixed-rate tax assessment?

A: Most regions do not issue formal written notices; typically, they provide only verbal confirmation, conduct unannounced audits, or make notes in the system’s backend. Only a very small number of regions issue written notices. The assessment notice issued following the audit process serves as the most definitive basis; verbal confirmation may be considered a provisional measure.

Q: Can bestsellers with sales exceeding 100 million also apply?

A: Yes, there are already single-store sellers with over 100 million in revenue who have successfully obtained tax assessment status. This largely depends on local policies; most areas in Shenzhen are quite supportive of large stores.

Qicaiying: Why Choose Us to Apply for a Fixed-Rate Tax Assessment?

The window for applying for the fixed-rate tax assessment won’t remain open indefinitely. Currently, applications are still being accepted in multiple cities, including Shenzhen, Guangzhou, Shanghai, Ningbo, Xiamen, Chengdu, and Fujian, but the criteria vary by district and tax office. For the same store and the same revenue level, the difference between a single district could mean the difference between eligibility and ineligibility—and this isn’t a matter of luck, but rather how deeply the person you consult understands the policy.

✔️ Comprehensive Coverage Across Multiple Cities:We can assist with applications in Shenzhen, Guangzhou, Shanghai, Ningbo, Xiamen, Chengdu, Fujian, and many other cities. Since the approved tax quotas, taxable income rates, and application requirements vary by city, we will match you with the optimal solution based on your store’s location.

✔️ Precise Tax Rate Matching:Fixed-rate taxation isn’t as simple as ”either 0.5% or 1%.” When the taxable income rate, the applicable tax rate, and the policy of halving the tax are applied together, the final tax burden can vary significantly across different industries and company sizes within the same region. Qi Cai Ying helps you calculate the exact figures before applying—we don’t take a one-size-fits-all approach.

✔️ End-to-End Agency Services:From document preparation → communication with the tax office → application submission → result tracking—you won’t have to make repeated trips. We follow a standard application process, taking no shortcuts and staying within the rules, completing the application through official channels.

✔️ Practical Experience in Achieving Over 100 Million in Sales:A single-store seller with over 100 million in revenue has successfully completed the verification process. We already have a proven process in place for large stores regarding whether they can apply, how to apply, and what additional considerations to keep in mind.

We have helped thousands of cross-border sellers in Shenzhen, Guangzhou, Shanghai, Ningbo, and other cities successfully apply for the fixed-rate taxation scheme. Scan the QR code to add a consultant and get a free feasibility assessment for the fixed-rate taxation scheme—we’ll let you know if it’s available in your city and what benefits you can expect.

Cell phone: 18676749275 ｜ WeChat: qcygscszk