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Announcement No. 4 of 2025 by the State Taxation Administration has optimized several aspects related to the issuance of the China Tax Resident Identity Certificate, with the following key points:
1. Expansion of Applicable Scenarios
Applicants can choose the purpose of application as either "enjoying treaty benefits" or "non-enjoyment of treaty benefits" based on their actual circumstances. The latter covers a variety of scenarios that taxpayers have encountered in cross-border activities in recent years, further meeting the diverse needs of cross-border operations.
2. Full Online Processing
Relying on the Electronic Tax Bureau website and the Natural Person Electronic Tax Bureau website, enterprises and individuals can now apply for the China Tax Resident Identity Certificate through a fully online process, making the application procedure more convenient.
3. Adjustment of Certificate Content
The taxpayer identification number has been added to the certificate to facilitate identification and management by tax authorities and applicants.
The requirement for the signature of the head of the competent tax authority has been removed to further simplify the content of the certificate.
Additional information, such as details of partnerships, can be included at the request of the applicant to meet potential personalized needs.
4. Shortened Processing Time
If the competent tax authority can independently determine the tax resident status, the processing time has been reduced from the current 10 working days to 7 working days.
5. Clarification of Application Entities
Branches of Chinese resident enterprises, both domestic and overseas, cannot independently apply for the Tax Resident Certificate. The application must be made by the Chinese head office to the competent tax authority of the head office.
Domestic individual businesses, sole proprietorships, and partnerships cannot independently apply. The application must be made by the Chinese resident owner or investor to the competent tax authority where the business is managed and operated.
6. Application Channels
Applicants can choose the following channels for processing:
Enterprises: Apply through the Electronic Tax Bureau website for full online processing, or visit the tax service hall of the competent tax authority.
Individuals: Apply through the Natural Person Electronic Tax Bureau website for full online processing, or visit the tax service hall of the competent tax authority.
7. Effective Date
The announcement will come into effect from April 1, 2025.
These optimized measures aim to better serve Chinese residents in cross-border operations, providing convenience and protection, and further promoting high-level opening up to the outside world.
At PHC Advisory, we can offer you full support on matters regarding doing business in China, or any other issues your business may face. If you would like to know more about policies relevant to your business in Italy or Asia, please contact us at info@phcadvisory.com.
PHC Advisory is a company of DP Group: an international professional services conglomerate of companies with approximately 100 experienced professionals worldwide. We offer comprehensive services in tax, accounting, and financial consulting, including financial supervision, financial audit, internal audit, internal control over financial reporting, and support for audited financial statements and annual audits, ensuring clients' financial transparency and compliance.
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The content of this article is provided for informational purposes only, financial advice must be tailored to the specific circumstances on a case-by-case basis, and the contents of this article do not legally bind PHC Advisory with the reader in any way.
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