What's in This Issue

Tax Case Involving Zhang Ziyi’s Partnership Equity Transfer Comes to Light; State Taxation Administration Cracks Down on ”Buy Low, Sell High” Arbitrage Through Assessed Taxation

The Wave of Tax Reimbursements in the A-Share Market Continues: Three Companies—Yubang New Materials, Chenfeng Technology, and Samsung New Materials—Announced Tax Reimbursements This Week

The Suzhou Tax Inspection Bureau Issued Seven Large-Scale Fines in Succession, with the Highest Single Case Totaling 38 million yuan in back taxes and fines

Finance and Tax News::Tax Case Involving Zhang Ziyi’s Partnership Equity Transfer Comes to Light; State Taxation Administration Cracks Down on ”Buy Low, Sell High” Arbitrage Through Assessed Taxation

On August 18, the State Taxation Administration released a typical case involving equity transfers in the film and television industry, in which a partnership indirectly transferred equity in the target company held by a celebrity through a ”buy low, sell high” arrangement. The tax authorities launched an anti-tax avoidance investigation on the grounds that there was no reasonable commercial purpose, and ultimately levied additional individual income tax and late payment penalties totaling over 6.8 million yuan based on the progressive individual tax rates ranging from 10% to 35%. The State Taxation Administration clarified that穿透核查 of equity transfers by partnerships has become a routine mechanism, and ” traditional arrangements involving ”entering at a low price, changing partners in the short term, and exiting at a high price” are no longer recognized; natural person partners will be subject to a ”look-through” assessment and their income will be reassessed as ”business income” or ”gains from the transfer of property,” and “tax havens” for assessed taxation are being comprehensively tightened.

Finance and Tax News::The Wave of Tax Reimbursements in the A-Share Market Continues: Three Companies—Yubang New Materials, Chenfeng Technology, and Samsung New Materials—Announced Tax Reimbursements This Week

From August 18 to 20, Yubang New Materials (301036), Chenfeng Technology (603685), and Samsung New Materials (603578) successively issued announcements regarding tax-related matters. Among them, Yubang New Materials must pay back corporate income tax and late payment penalties totaling approximately 42.5 million yuan for the years 2022–2024, accounting for over 45% of its net profit attributable to parent company shareholders for the period; Chenfeng Technology must pay back value-added tax and surcharges totaling approximately 21.8 million yuan; a subsidiary of Samsung New Materials must pay approximately 15.6 million yuan. None of the three companies faces administrative penalties; however, the one-time recognition of these tax payments in current-period profit or loss will significantly drag down their 2026 annual report performance. This week, more than 12 companies have issued announcements or supplementary announcements regarding tax matters.

Finance and Tax News::The Suzhou Tax Inspection Bureau Issued Seven Large-Scale Fines in Succession, with the Highest Single Case Totaling 38 million yuan in back taxes and fines

On August 19, the Audit Bureau of the Suzhou Tax Bureau under the State Taxation Administration publicly disclosed seven major tax administrative penalty cases, covering four major industries: commerce and trade, real estate, construction and installation, and renewable resources. The most common types of tax violations included: the issuance of fraudulent invoices within upstream and downstream supply chains, failure to recognize revenue based on project completion progress, significantly undervalued pricing in related-party transactions, and concealment of demolition compensation payments. Among these, a recycling enterprise was charged with tax evasion for issuing fraudulent special VAT invoices; the company was ordered to pay 21.4 million yuan in back taxes and a fine of 1.66 times that amount, totaling over 38 million yuan. The case has been referred to public security authorities. The Suzhou region is currently conducting a four-month ”upstream-downstream transaction tracing” special rectification campaign.

Finance and Tax News::Accelerated Global CRS Reform: Singapore, the Cayman Islands, and India Successively Implement Look-Through Reporting Rules

Following the Organization for Economic Cooperation and Development’s (OECD) update to the CRS (Common Reporting Standard) Implementation Manual on August 19, the tax authorities of Singapore, the Cayman Islands, and India successively issued localized implementation guidelines this week. Key provisions of the new rules: The threshold for identifying the Ultimate Beneficial Owner (UBO) through look-through has been lowered from 25% to 10%; trust structures must report information on all three tiers—settlor, protector, and beneficiary; and virtual asset service providers must look through to the natural person. The Singapore Inland Revenue Authority has clarified that reporting under the new criteria will take effect on January 1, 2027, and that financial institutions must complete due diligence on existing accounts by December 31, 2026. The scope of the exchange of information on offshore financial accounts held by Chinese residents is expected to be further expanded.

Company News::Yushu Technology has completed its listing guidance for the STAR Market and expects to submit its application in Q4 2026

On August 20, a public notice from the China Securities Regulatory Commission (CSRC) revealed that Yushu Technology Co., Ltd. recently completed its listing guidance for the STAR Market, with CITIC Securities serving as the guidance institution. The company is expected to formally submit its prospectus as early as the fourth quarter of 2026. Yushu Technology is projected to generate approximately 1.2 billion yuan in revenue by 2025, with its annual shipments of hexapod and humanoid robots ranking among the world’s highest. The company’s valuation in its Series D funding round in 2025 is estimated at approximately 20 billion yuan. During the guidance period, the company focused on resolving issues related to the historical evolution of its equity incentive plan, the disclosure of related-party transactions, and the compliance of its overseas subsidiary structures. If the listing application is successfully approved, Yushu will become the first A-share listed company specializing in humanoid robots.

Company News::BYD Electronics Acquires Sebők Plant in Hungary for 3.65 Billion Yuan, Further Expanding Overseas Production Capacity

On August 15, BYD Electronics (00285.HK) announced that a wholly-owned subsidiary has acquired the vehicle assembly plant and supporting parts production lines of Hungarian auto parts manufacturer Sebők Group, located in Szeged, for a consideration of approximately 480 million euros (approximately 3.65 billion yuan). The plant, formerly owned by a German Tier 1 supplier, covers an area of over 250,000 square meters and possesses comprehensive capabilities in white body stamping, welding, painting, and final assembly. BYD Electronics plans to transform it into a European assembly base for complete vehicles and ”three-electric” systems, with production scheduled to begin in Q3 2027. The facility is projected to have an annual production capacity of approximately 150,000 vehicles, providing localized production capacity for BYD’s European vehicle business that “bypasses EU carbon tariffs.”

Company News::SK Hynix Launches 40 Trillion Won Shareholder Return Plan: To Cancel Treasury Stock and Double Dividends Over Three Years

On August 18, South Korean memory chip giant SK Hynix (000660.KS) announced that its board of directors had approved a new shareholder return policy: Over the next 36 months, the company will return up to 40 trillion won (approximately 216 billion yuan) to shareholders through the cancellation of treasury shares and cash dividends. This includes the previously announced 10 trillion won share buyback plan and a new 30 trillion won commitment to medium- to long-term dividends. The dividend payout ratio for the full year of 2026 is projected to reach 30%–40%, more than double the 2025 level. The company also raised its long-term capital expenditure forecast for its HBM business to approximately 120 trillion won for new campuses in Cheongju and Yongin, South Korea.

Company News::Huaxin Building Materials Completes Acquisition of HPI 100% in the Philippines, Entering the Market of Southeast Asia’s Leading Cement Company

On August 17, Huaxin Building Materials (600801) announced that it had completed the closing of its acquisition of a 100% equity stake in Holcim Philippines Industries, Inc. (HPI) for approximately $485 million. HPI operates four cement plants in the Philippines with a combined clinker production capacity of approximately 11 million metric tons, making it the country’s second-largest cement producer. The acquisition was carried out by Huaxin (Hong Kong) International Holdings Limited, a wholly-owned subsidiary of Huaxin Building Materials, using a combination of internal funds and a syndicated loan. Upon completion, Huaxin’s total clinker production capacity in Southeast Asia will exceed 30 million metric tons per year, and the proportion of revenue from Southeast Asia is expected to rise from 18% in 2025 to over 30% in 2026.

Overseas Watch::U.S. Section 301 Tariff Escalation: Covers $480 billion in Goods from 60 Countries; to Be Implemented in Two Phases Starting September 1

On August 15, the Office of the United States Trade Representative (USTR) released the final version of the expanded Section 301 tariff list, covering approximately $480 billion worth of goods from 60 trading partners. The new list will take effect in two phases: starting September 1, a 25% tariff will be imposed on semiconductors, medical devices, specialty chemicals, battery components, and other goods; and starting November 1, tariffs ranging from 50% to 100% will be imposed on textiles, footwear, apparel, furniture, toys, agricultural products, and other goods. The overall impact on Chinese exports is estimated at approximately $160 billion, and ”transshipment countries” such as Mexico, Vietnam, and India will also be subject to review. This marks the largest unilateral tariff adjustment during the current U.S. administration’s term.

Overseas Watch::U.S.-Canada ”Section 338” tariffs on 50% steel and aluminum officially took effect on August 19; Canada launched retaliatory measures worth 25 billion Canadian dollars.

On August 19, the U.S. Section 338 tariffs of 50% on Canadian steel and aluminum exports to the U.S. officially took effect, covering approximately 28 billion Canadian dollars worth of annual Canadian steel and aluminum exports. On the same day, the Office of the Prime Minister of Canada announced a list of retaliatory measures: effective September 16, it will impose 25% retaliatory tariffs on $25 billion worth of U.S. goods, including steel and aluminum products, agricultural machinery, home appliances, and sporting goods. On the same day, Mexico’s Ministry of Economy announced that it would place over $8 billion worth of U.S. goods on a watch list. This North American trade war will disrupt the restructuring of the North American automotive industry chain and supply chain, putting pressure on cross-border businesses.

Overseas Watch::One Week Since the EU PPWR Took Effect: Inspection Rate for Cross-Border Packages from France, Italy, and Spain Rises to 15%

On August 19, one week after the EU’s Packaging and Packaging Waste Regulation (PPWR) took effect, compliance pressures on cross-border e-commerce have significantly increased. Data from French customs this week shows that the inspection rate for inbound cross-border e-commerce containers has risen from the usual 3% to 15%; Customs authorities in Milan, Italy, issued their first fines of 800 euros per package for parcels lacking EPR labels, with void ratios exceeding 40%, or heavy metal levels exceeding 100 ppm. Spanish customs authorities detained approximately 46,000 non-compliant packages this week. Starting in January 2027, EU member states will implement a mandatory removal mechanism for non-compliant goods.

Overseas Watch::First Week of Port Clearance for 12 Categories of Goods in Vietnam: Clearance for Air Conditioners and Passenger Cars Extended by 2–5 Business Days

One week after the Vietnamese government’s Decision No. 31/2026/QĐ-TTg took effect on August 14, the latest data from Ho Chi Minh City Customs shows that the customs clearance time for household air conditioners, passenger cars with ≤16 seats, tobacco, alcoholic beverages, playing cards, and other categories have seen their port clearance times extend from the original 1–2 days to 3–7 business days. Warehousing fees at Ho Chi Minh City Port and in bonded zones have simultaneously increased by 15%–20%, placing significant short-term cost and cash flow pressures on cross-border sellers. Vietnamese customs has established specialized inspection teams for 12 categories of goods and is conducting 100% physical inspections of shipments with incorrect HS code classifications, undervalued declarations, or missing CCC certifications.

Overseas Watch::New Indonesian E-Commerce Withholding Tax Regulations Take Effect: 0.51%–3% Income Tax + Up to 50 Million Indonesian Rupiah for Cross-Border Packages

On August 16, the Indonesian Directorate General of Taxes (DJP) officially implemented a 0.51 TP3T income tax withholding mechanism for cross-border e-commerce platforms. Operators such as Tokopedia, Shopee, Lazada, TikTok Shop, and other operators to withhold taxes monthly based on GMV, with a monthly cap of 50 million Indonesian rupiah (approximately 22,000 RMB). At the same time, starting August 18, Indonesian Customs will launch a special review for centralized clearance of cross-border parcels with a value per shipment exceeding 1,500 U.S. dollars and suspend the ”direct express delivery” model. Indonesia is the third ASEAN country this year—following Vietnam and Thailand—to implement the ”platform tax withholding” system.

Cross-border Platform::Ozon’s Double Increase Takes Effect on August 28: Commissions for Local Sellers Rise by Up to 6 Percentage Points, and Shipping Costs to the Far East Skyrocket 275%

Russian e-commerce platform Ozon issued another notice this week regarding rate adjustments: Effective August 28, the FBS self-fulfillment commission for domestic sellers” products priced under 300 rubles will increase by up to 6 percentage points; for items priced at 300 rubles or more, commissions will increase by 5–6 percentage points across all three fulfillment models (FBO, FBS, and realFBS); the commission cap for footwear under the realFBS model may reach 55%. In terms of logistics, shipping costs for small packages (10–11 liters) sent from Moscow to Khabarovsk and Komsomolsk-on-Amur in the Far East have skyrocketed from 79.3 rubles to 297 rubles, a 275% increase. The platform simultaneously launched ”subsidies for self-operated cold-chain warehouses + targeted commission rebates for cross-border product categories” to offset seller attrition.

Cross-border Platform::Shopee Raises Fees Simultaneously in Thailand and Malaysia: Shopee Mall’s Maximum Combined Rate Reaches 19.261 TP3T; Commissions Increase by 1–2 Percentage Points

On August 18, Shopee Thailand and Shopee Malaysia officially implemented their third round of fee adjustments this year. On Shopee Thailand, the sales commission for Shopee Mall has increased to a maximum of 19.26% (including 7%VAT), while the maximum for non-Mall listings is 17.12%; In Malaysia, the maximum commission rate for Shopee Mall rose to 16.51 TP3T, while the maximum for non-Mall sellers reached 151 TP3T. Other Southeast Asian Shopee platforms, including those in Vietnam, the Philippines, and Indonesia, also followed suit this week with modest increases. Meanwhile, Shopee announced the schedule for its September Southeast Asia Seller Conference, where it is expected to unveil new policies centered on three key areas: ”AI tools, localized fulfillment, and paid membership traffic.”

Cross-border Platform::Lazada Introduces ”Technical Support Fee” Across Its Five Major Marketplaces; Fee Reaches Up to 4.51 TP3T on the Singapore Site

On August 20, Lazada, a subsidiary of Alibaba, announced the simultaneous launch of the **”Platform Technical Support Service Fee”** across its five major marketplaces—Singapore, Malaysia, Thailand, the Philippines, and Indonesia—with tiered rates ranging from 0.5% to 4.5% depending on product category. On the Singapore site, the highest rate applies to the 3C electronics and home goods categories at 4.51 TP3T; in Thailand and the Philippines, the highest rate for fashion and beauty is 3.51 TP3T; and in Malaysia and Indonesia, the highest rate is 2.51 TP3T. Lazada stated that this fee is used to cover the computing costs of platform tools such as AI customer service, AI content generation, and multilingual translation. Combined with previous commission and marketing service fees, sellers’ overall rates have increased by 20%–30% compared to the same period last year.

Cross-border Platform::Three Major New Amazon Policies Take Effect Simultaneously: BSA Revisions, Mandatory AI Content Labeling, and Enhanced AWD Inventory Restrictions

This week, Amazon implemented three major policy changes affecting cross-border sellers: (1) On August 15, the new version of the ”BSA—Amazon Service Agreement” took effect; sellers are prohibited from contacting buyers on the platform to solicit off-site transactions without written permission; (2) Effective August 18, AI-generated images of photorealistic human models must include the “contains-synthetic-performer” tag embedded in IPTC metadata; violations will result in listing restrictions or removal; (3) Starting August 20, AWD (Amazon Warehousing & Distribution) will automatically initiate removal or disposal procedures for long-term slow-moving inventory, and a storage fee of $4.50 per cubic foot per month will be charged for items stored for more than 270 days.

Cross-border Platform::Xiaohongshu Redshop's Cross-Border Edition Officially Launches in Europe and the U.S.

On August 19, Redshop—Xiaohongshu’s cross-border business—officially launched in several countries across Europe and the United States, offering support to Chinese brands expanding overseas in the form of ”zero deposit + commission waiver for the first three months.” The first batch of product categories being recruited in Europe and the U.S. focuses on beauty, affordable luxury, and home goods.

Cross-border Platform::TikTok Shop Tightens Annual Fee Requirements for Access in Southeast Asia

TikTok Shop Southeast Asia announced new regulations this week, mandating that cross-border sellers pay an annual fee of $1,500 plus a category deposit starting September 1. Sellers who fail to pay on time will have their top GMV ranking privileges suspended. The simultaneous adjustments by these two major platforms reflect that ”cross-border content e-commerce” has moved beyond the initial phase of rapid expansion and entered a stage of compliance and refined operations.

immigration::Australia Suspends Working Holiday Visa Applications from 24 Countries: Only a Few Countries, Including the U.K., the U.S., Canada, Japan, and South Korea, Remain Eligible

On August 18, the Australian Department of Home Affairs announced that, effective August 19, it would suspend the acceptance of applications for the next round of the 462/417 Working Holiday Visa (WHV) from citizens of 24 countries. The suspended countries include China, Brazil, India, Indonesia, Vietnam, Turkey, Argentina, South Africa, and others. Applicants from these affected countries will not be able to obtain a WHV during the 2026–2027 fiscal year. Australian authorities explained that the suspension is intended to ”free up resources to prioritize processing the backlog of 485/500 student visa applications.” Industry experts estimate the suspension may last 12–18 months, affecting more than 15,000 Chinese applicants. They recommend that affected applicants consider switching to Canada’s International Experience Canada (IEC) program or New Zealand’s Working Holiday Visa (WHV).

immigration::New Zealand Skilled Migration (SMC) Policy Takes Effect on August 24; Master’s Degree Holders Automatically Receive a Full 6 Points

New Zealand’s Immigration Service confirmed again this week that the new Skilled Migrant Category (SMC) immigration policy will officially take effect on August 24. Key highlights: A master’s degree directly awards the full 6 points, with no local work experience required; a doctoral degree allows applicants to apply for permanent residency (PR) without any work experience requirements; and two years of skilled work experience qualifies applicants for PR. Under the previous points-based system, points earned for a master’s and bachelor’s degree had to be combined with 1–2 years of local New Zealand work experience; the new policy significantly shortens the transition from studying abroad to immigration. At the same time, two new pathways have been introduced: ”Skilled Work Experience” and ”Skilled Trades.” The former requires one year of local work experience in New Zealand, while the latter requires an NZQA Level 4 or higher qualification.

immigration::UK HC 259 Immigration Rules Amendment: Salary Threshold for Skilled Worker Visas Raised by 12.6%; Restrictions on Family Reunification Tightened

On August 20, the UK Home Office announced updates to Immigration Rule HC 259, which will take effect on April 1, 2027. Key changes: (1) The minimum salary threshold for the Skilled Worker visa will increase from the current £38,700 to £43,500, a rise of 12.61%; (2) The list of shortage occupations has been reduced from 39 to 31, with the removal of accounting, civil engineering, and certain healthcare roles; (3) The income threshold for dependent (spouse/child) visas has been raised from 29,000 pounds to 34,500 pounds; (4) The income threshold for the Graduate Visa was raised accordingly, increasing to 1,650 pounds per month in the London area.