The announcement of the income tax for the cross-border e-commerce comprehensive pilot zone retail export enterprise

State Administration of Taxation Announcement No. 36 of 2019

In order to support the healthy development of cross-border e-commerce business, promote the innovation of foreign trade mode, and effectively cooperate with the Circular of the Ministry of Finance and the General Administration of Customs of the Ministry of Finance on the Taxation Policy for Retail Export Goods in the Cross-border E-Commerce Comprehensive Experimental Zone (Cai Shui [2018] No. 103) To implement the work, the relevant issues concerning the cross-border e-commerce retail export enterprises (hereinafter referred to as “cross-border e-commerce enterprises”) in cross-border e-commerce comprehensive pilot zones (hereinafter referred to as “cross-border e-commerce enterprises”) are as follows:

1. Cross-border e-commerce enterprises in the comprehensive test area, which meet the following conditions at the same time, try to verify the enterprise income tax method:

(1) registering in the comprehensive test area and registering the date, name, unit of measurement, quantity, unit price and amount of the exported goods on the integrated service platform for cross-border e-commerce in the registered place;
(2) The export goods pass the procedures for declaration of e-commerce export through the customs of the location of the comprehensive test area;
(3) The export goods have not obtained valid receipt certificates, and their value-added tax and consumption tax enjoy the tax exemption policy.

2. Cross-border e-commerce enterprises that are levied by the core of the comprehensive test area shall accurately calculate the total income and use the taxable income rate to verify the enterprise income tax. The taxable income rate is determined in accordance with 4%.

3. The taxation authority shall, in accordance with relevant regulations, complete the appraisal of the enterprise income tax approved by the cross-border e-commerce enterprises in the comprehensive test area in a timely manner.

4. If the cross-border e-commerce enterprise that has been approved for collection in the comprehensive test area meets the preferential policies of small-scale and low-profit enterprises, it can enjoy the preferential policy of small-scale and low-profit enterprise income tax; the income it receives belongs to the "Enterprise Income Tax Law of the People’s Republic of China". If the tax-free income specified in the article is available, the tax-free income preferential policy may be enjoyed.

5. The comprehensive test area referred to in this announcement refers to the cross-border e-commerce comprehensive test area approved by the State Council; the cross-border e-commerce enterprise referred to in this announcement refers to the self-built cross-border e-commerce sales platform or the use of third-party cross-border E-commerce platform to launch e-commerce export enterprises.

6. This announcement shall come into force on January 1, 2020.

                                       State Administration of Taxation
                                              October 26, 2019