New Fiscal and Tax Policies: VAT Return Form for Withholding and Remittance by Domestic Entities on Behalf of Individuals Takes Effect on November 1

On September 4, the State Taxation Administration issued Announcement No. 19 of 2026, formally releasing the “Declaration Form for Value-Added Tax and Supplementary Taxes Withheld and Remitted by Domestic Entities on Behalf of Natural Persons,” along with its supplementary materials and filing instructions. This form was formulated in accordance with the “Value-Added Tax Law” and its implementing regulations, and in conjunction with Announcement No. 28 of 2026 issued by the Ministry of Finance and the State Taxation Administration, titled “Administrative Measures for Withholding and Remitting Value-Added Tax on Behalf of Natural Persons by Domestic Entities,” and will take effect on November 1, 2026. This marks the official implementation of the requirement for payers to withhold and remit VAT on business income earned by individuals, further closing the tax administration loop in scenarios such as the platform economy, flexible employment, and remuneration for services. Enterprises must adapt their settlement systems, contract templates, and withholding and remittance procedures in advance.

New Tax Policy: Individual Income Tax on Dividends for Foreign Individuals to Be Paid at a Rate of 20%; Effective September 1

Announcement No. 27 of 2026 issued by the Ministry of Finance and the State Taxation Administration specifies that income from dividends received by foreign individuals from foreign-invested enterprises shall be subject to individual income tax under the ”interest, dividends, and profits” category, at the 20% tax rate. Foreign-invested enterprises shall withhold and remit the tax at the time of payment and file a tax return within 15 days of the month following the payment of the income; if tax has not been withheld, the taxpayer shall pay the tax independently by June 30 of the year following the receipt of the income. This Announcement takes effect on September 1, 2026, and Item (8) of Article 2 of Announcement No. 20 [1994] of the Ministry of Finance and the State Taxation Administration is hereby repealed. The tax burden on dividends under cross-border equity structures and the applicability of tax treaties must be recalculated.

New Fiscal and Tax Policies: Clarifications on VAT Matters, Including Non-Taxable Transactions, to Take Effect on September 1, 2026

Announcement No. 25 of 2026 issued by the Ministry of Finance and the State Taxation Administration took effect on September 1, providing uniform clarification on several contentious issues: the scope of non-taxable transactions; the purchase price for financial instruments resold by the transferee in an asset restructuring shall be determined based on the transferor’s purchase price; the forms of real estate acquisition include purchase, gift, investment in equity, self-construction, debt-for-equity swap, and asset restructuring; general taxpayers who waive VAT preferential treatment must submit a written declaration specifying the effective date and file it with the competent tax authority; free gifts accompanying telecommunications services must be accounted for separately; discounts not specified in the ”Amount” column of the same invoice may not be deducted. Matters that have occurred but remain unresolved from January through August 2026 shall be handled in accordance with this Announcement; Article 1 of Cai Shui [2007] No. 127 and other relevant provisions are hereby repealed.

Company News: Xiaomi Auto to Enter the European Market in 2027, Signs Agreements with First Group of German Auto Dealers

On September 4, Xiaomi Auto announced that it will enter European markets, including Germany, in 2027, and signed memorandums of understanding (MoUs) with eight of its first leading German dealers at the 2026 IFA in Berlin. The models that Xiaomi Auto plans to launch overseas will undergo high-speed validation and functional testing at test tracks in four countries: Sweden, Germany, Spain, and Italy.

Company News: Miniso Reports First-Half Revenue of 11.5 Billion Yuan and 3,644 Overseas Stores

Miniso disclosed its 2026 interim results, reporting total revenue of 11.5 billion yuan in the first half of the year, a year-over-year increase of 22.4%; a gross profit margin of 44.3%; and net income of 960 million yuan, up 5.6% year over year. As of June 30, 2026, Miniso Group operated 8,674 stores worldwide. Of these, the Miniso brand accounted for 8,309 stores globally, including 4,665 in China and 3,644 overseas; TOP TOY operated 365 stores worldwide, with operations spanning Asia-Pacific markets such as Japan, Thailand, Malaysia, Indonesia, and Taiwan, China.

Corporate News: HKEX Raised HK$342.4 Billion in IPOs in the First 8 Months, a Significant Year-Over-Year Increase of 1,53%

On September 4, the Hong Kong Exchanges and Clearing Limited (HKEX) released data showing that in the first eight months of 2026, a total of 106 new companies went public, representing a year-over-year increase of 80%; total IPO proceeds amounted to HK$342.4 billion, up 153% year over year; and total capital raised reached HK$651.3 billion, up 76% year over year. As of the end of August, there were 2,761 listed companies on the Hong Kong Stock Exchange, with a total market capitalization of approximately HK$47.2 trillion. On the same day, the China Securities Regulatory Commission (CSRC) released the ”Report on the Filing Status of Overseas Securities Issuances and Listings by Domestic Enterprises.” Twelve companies, including Yanwen Logistics, Shijiazhuang Pharmaceutical Innovation, and Sifang Co., Ltd., had their Hong Kong IPO filings marked as “received,” covering sectors such as biopharmaceuticals, cross-border logistics, new energy, and cultural tourism and consumer services.

Corporate News: Ministry of Finance Injects 360 Billion Yuan into 8 Central Financial Enterprises and Plans to Issue 300 Billion Yuan in Special Treasury Bonds

On September 6, the Industrial and Commercial Bank of China (ICBC), the Agricultural Bank of China (ABC), the Export-Import Bank of China, and five insurance companies each announced capital increase plans, with a combined injection of approximately 360 billion yuan to replenish their core Tier 1 capital. Among them, ICBC plans to raise no more than 100 billion yuan through a private placement to the Ministry of Finance, China National Tobacco Corporation, and its subsidiaries; ABC plans to raise no more than 160 billion yuan; and China Life, China Taiping, and China Export & Credit Insurance Corporation will receive capital injections of 35 billion, 7 billion, and 10 billion yuan, respectively. According to Xinhua News Agency, the Ministry of Finance will issue 300 billion yuan in special government bonds in the near future to support this round of capital injections, further enhancing the sound operations and risk-resilience of major financial institutions.

Overseas Trade Insights: Tax-Exempt Status for Small Packages Worth Up to $800 Has Been Fully Eliminated; All Packages Shipped to the U.S. Must Now Be Officially Declared and Taxed

Effective September 1, 2026, the U.S. De Minimis (small-value exemption) duty-free treatment will be fully terminated; all parcels from all countries, regardless of value, must be formally declared and duties paid, and the T86 customs clearance channel has been closed. The cost structure for direct mail small packages from China has been completely overhauled: the current tax rate consists of approximately 12.51 TP3T under Section 301’s forced labor tier (which replaced Section 122 on July 24) plus 251 TP3T in Section 301 commodity tariffs, totaling approximately 37.51 TP3T, plus a 0.34641 TP3T commodity handling fee. Additionally, a per-item processing fee for low-value postal shipments will take effect no later than November 1, 2026. Profit margins for low-value direct mail have been significantly squeezed, and shifting to overseas warehouses and bulk customs clearance have become the primary strategies for addressing this situation.

Overseas Business Insights: General Administration of Customs Fully Rolls Out Cross-Customs District Returns for Cross-Border E-Commerce Retail Export Goods

The General Administration of Customs issued Announcement No. 24 of 2026, titled “Announcement on the Comprehensive Rollout of Cross-Customs District Returns for Cross-Border E-Commerce Retail Export Goods,” extending the cross-customs district return model—previously limited to pilot programs—nationwide. Returned goods can now undergo re-import procedures at ports other than the original port of export. Coupled with the policy extending the duty-free period for cross-border e-commerce export returns to two years, the costs associated with unsold inventory and returns at overseas warehouses have significantly decreased. Combined with facilitation measures such as the increased retail export quota for the 9610 category and the monthly consolidated declaration for 9710 B2B exports, institutional costs on the export side continue to decline. Enterprises must simultaneously integrate their warehousing, logistics, and customs declaration data to ensure the traceability of the returns process.

Overseas Business Insights: A Large Number of Cross-Border Sellers in Shenzhen Receive Tax Alert Text Messages

On September 1, a large number of cross-border e-commerce sellers in Shenzhen received text messages from tax authorities containing risk alerts. The messages stated that their export revenue since 2026 was suspected of not having been fully reported for value-added tax (VAT) purposes, and required them to conduct a self-inspection and make corrections within 10 days by amending their tax returns through the Electronic Tax Bureau and ensuring subsequent filings comply with regulations. Failure to comply by the deadline will result in further tax enforcement measures. The text message outlined different procedures: small-scale taxpayers should report “tax-exempt export sales,” general taxpayers should fill in the corresponding fields, and agents handling exports may issue a “Certificate of Agency for Export” and remind the principal to file a full declaration.

Cross-border Platform: Starting September 7, the Malaysia site will impose a 6% Sales and Services Tax on sellers' shipping fees

TikTok Shop Malaysia announced that, effective September 1, 2026, a 6% Sales and Services Tax (SST) will be levied on delivery-related service fees charged to sellers. This covers logistics services such as the delivery, distribution, and transportation of goods, as well as document and package delivery, and may also apply to outbound and return shipping costs for unsuccessful orders. The platform will cover the tax burden during the transition period from September 1 to 6, with sellers assuming the actual cost starting September 7. This adjustment stems from the change in the platform’s logistics entity from Tokgistics Pte Ltd to TikTok Shop (Malaysia) Sdn Bhd, which requires compliance with local tax regulations. Concurrently, the Singapore platform will also adjust its commission rates effective September 1.

Cross-Border Platform: Ozon Partners with Four Major Industry Associations to Enhance Risk Control for Digital Goods

A survey conducted by Temu among 152 European small and medium-sized enterprise (SME) sellers in Germany, France, Spain, Italy, Poland, and the United Kingdom revealed that 34% of the respondents began entering new overseas markets after joining Temu, while 50% of them increased production capacity, hired staff, or took both measures, indicating that the platform is becoming a key channel for some European SMEs to expand their cross-border e-commerce operations.

Cross-border Platform: Shopee Taiwan Local Store to Tighten Seller Evaluation Criteria Starting October 1

Shopee Taiwan announced that, effective October 1, 2026, the response rate threshold for “Chat” messages from marketplace sellers will be raised from the current 50% to 70%. In addition, both the in-store pickup and home delivery service activation rates must reach 100%, and all home-delivered items must meet the free shipping criteria. Sellers must enable next-day delivery services during the evaluation period, and their total order volume must be at least 1. If sellers fail to meet the above conditions, their Marketplace eligibility will be revoked; sellers who have already obtained eligibility will also be subject to periodic evaluations.

Cross-border Platform: One-Click Onboarding for Lazada’s Four Markets, No Need for Repeated Verification

Lazada recently completed an upgrade to its cross-border onboarding process. Cross-border merchants now only need to submit a single set of business credentials and operational documents via the Seller Center to gain priority one-time access to four core marketplaces—Malaysia (MY), the Philippines (PH), Thailand (TH), and Vietnam (VN)—eliminating the previous burden of submitting information and undergoing repeated verification on a country-by-country basis; If merchants wish to add the Singapore (SG) marketplace at a later date, they can simply follow the on-screen instructions to submit the required localized documents for that country (such as an English-language business license, tax documents, or category compliance documents). Once approved, they can join the marketplace without having to go through the entire onboarding process again.

Immigration News: New Regulations on Entry and Exit Management Take Effect on September 15, 2026, Strengthening Compliance and Investigative Powers

The new Regulations on the Administration of Entry and Exit will take effect on September 15, 2026. The regulations strengthen compliance requirements for foreign nationals, employers, organizations, and entry-exit service agencies, while granting immigration and visa authorities broader powers to investigate non-compliance and fraudulent applications. Enterprises employing foreign nationals, study-abroad agencies, and organizations recruiting foreign talent must simultaneously update their internal procedures for visa applications, document retention, and compliance reviews to prevent visa refusals or risks of subsequent audits resulting from defects in application documents.

Immigration Update: Unilateral 60-day visa-free entry for 93 countries to be lifted starting September 15; the China-Thailand visa-waiver agreement remains unaffected

Thailand announced that, effective September 15, 2026, it will revoke the unilateral 60-day visa-free policy previously in place for 93 countries and regions, citing the need to combat visa abuse and cross-border crime, and to adhere to the ”one country, one right” principle. The Chinese Embassy and Consulates in Thailand have issued a clear response: This adjustment does not affect the bilateral visa-free agreement between China and Thailand. Chinese citizens holding valid ordinary passports may still enter Thailand visa-free, with a maximum single-stay of 30 days and a cumulative stay not exceeding 90 days within any 180-day period. The embassy reminds travelers that visa-free entry does not equate to unconditional entry; those intending to work, study, or stay in Thailand for more than 30 days must still obtain the appropriate visa in advance.