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China Tax Authority Marks CPC's 105th Anniversary with Focus on Party Building and Tax Governance

Foreign founders operating in China should note the tax authority's renewed emphasis on party building, correct performance outlook, and stricter tax enforcement. The article outlines the key themes from a recent internal event and their potential implications for compliance and business operations.

China Tax Authority Highlights Party Building and Tax Governance at 105th Anniversary Event

On June 30, 2026, China's State Taxation Administration (STA) held a special event to celebrate the 105th anniversary of the Communist Party of China (CPC). The event, themed "Deeply Study and Implement Xi Jinping's Thought on Party Building and Firmly Establish and Practice a Correct Outlook on Performance," was attended by STA leadership, including Party Secretary and Commissioner Hu Jinglin, who delivered a speech. While the event focused on internal party affairs, it signals ongoing priorities in tax governance that foreign founders should monitor.

Key Facts from the Event

• Date and Occasion: The event took place on June 30, 2026, ahead of the CPC's 105th anniversary on July 1.
• Medals for Long-Serving Party Members: Since 2021, the STA has awarded "50 Years of Glorious Party Membership" medals to 109 eligible veteran party members. This year, 12 individuals received the honor.
• New Party Members Sworn In: Sixteen new party members from the STA took an oath in front of the party flag.
• Recognition of Outstanding Units and Individuals: The event announced the naming of "Four Strong" party branches and "Four Good" party members within the tax system, as well as "Two Excellences and One Advance" awards for STA organs. Representatives received awards and shared remarks.
• Commissioner's Speech: Hu Jinglin emphasized the need to use Xi Jinping's thought on party building to guide high-quality development of tax party building, to promote comprehensive improvement in tax work with a correct performance outlook, and to build a disciplined and clean tax cadre team.

Implications for Foreign Founders Operating in China

Although the event is an internal party affair, the speech by the STA head underscores several operational themes that could affect foreign-invested enterprises (FIEs) and foreign founders:

1. Continued Focus on Correct Performance Outlook

Commissioner Hu stressed the importance of a "correct outlook on performance" in driving tax work. This includes deepening education on this outlook and ensuring the implementation of key tasks such as:

• Special rectification of "invoice economy" and illegal tax-related issues in investment promotion: This suggests continued scrutiny of practices where local governments offer tax incentives or rebates that may violate regulations. Foreign founders should ensure any incentives received are compliant and properly documented.
• Lawful and compliant tax collection: The emphasis on collecting taxes according to law indicates that tax authorities will maintain strict enforcement while aiming for fairness.
• Implementation of the "Strong Foundation Project" for tax and fee collection management: This likely refers to efforts to strengthen the foundational systems and processes for tax administration. Foreign companies should expect more standardized and possibly digitized procedures.

These points suggest that tax compliance remains a high priority, and foreign founders should regularly review their tax positions, especially regarding incentives and invoicing practices.

2. Strengthened Discipline and Supervision

The speech also called for forging a loyal, clean, and responsible tax cadre team through strict discipline. This includes focusing on the "key minority" (senior officials), strengthening daily supervision at the grassroots level, and promoting a culture of integrity. For foreign businesses, this could mean more consistent application of tax rules and less tolerance for irregularities, but also potentially a more predictable tax environment if enforcement is uniform.

3. Party Building as a Guiding Force

The event highlighted the role of party building in improving tax work. While foreign founders are not directly involved in party activities, understanding that the tax authority's direction is shaped by party thought can help anticipate policy trends. The emphasis on "political nature," "contemporaneity," "regularity," and "creativity" in party building suggests a continued focus on aligning tax administration with national goals.

Practical Takeaways for Foreign Founders

• Stay Informed on Tax Policy: Regularly check announcements from the STA and local tax bureaus for updates on tax incentives, compliance requirements, and enforcement priorities.
• Ensure Compliance with Incentives: If your company benefits from local investment incentives, verify that they are lawful and properly structured. The mention of rectifying illegal tax-related issues in investment promotion indicates ongoing risk in this area.
• Maintain Robust Invoicing Practices: The "invoice economy" rectification suggests that tax authorities are monitoring invoicing closely. Ensure all invoices are issued and received in accordance with regulations.
• Prepare for Digitalization: The "Strong Foundation Project" may involve further digitalization of tax processes. Keep your accounting systems updated and be ready for electronic reporting requirements.
• Engage Professional Advice: Given the evolving tax landscape, consider consulting with local tax advisors or legal experts to navigate complex rules.

In summary, while the STA event was a party-building activity, its messages reinforce the importance of tax compliance and adherence to regulations. Foreign founders should view this as a reminder to maintain diligent tax practices and stay attuned to policy signals from the tax authority.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

Call to Action: For assistance with company registration and ongoing operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.