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Liaoning Tax Authorities Enhance Services for Taxpayers: What Foreign Founders Should Know

A recent update from Liaoning's tax system shows a focus on resolving taxpayer difficulties and improving service delivery. For foreign founders operating in China, these developments signal potential improvements in tax administration and support.

Liaoning Tax Authorities Enhance Services for Taxpayers: What Foreign Founders Should Know

Foreign founders establishing or running a company in China often need to navigate complex tax regulations and procedures. Recent initiatives by tax authorities in Liaoning province, as reported by the State Taxation Administration, highlight efforts to improve taxpayer services and resolve practical difficulties. While these measures are specific to Liaoning, they reflect broader trends in China's tax administration that can impact foreign-invested enterprises.

Focus on Learning and Implementation

Since the launch of the second batch of a thematic education campaign, party committees at all levels of Liaoning's tax system have emphasized integrating learning with practice. The goal is to better serve taxpayers and fee payers by addressing their concerns and delivering tangible benefits. For foreign founders, this means tax authorities are being encouraged to adopt a more service-oriented approach, potentially making interactions with tax offices more efficient and responsive.

Leadership Commitment

Xu Guanglie, Party Secretary and Director of the Liaoning Provincial Tax Bureau, stated that the focus is on understanding what taxpayers need and providing solutions. He emphasized solving problems related to "who to work for, what to do, and how to do it" based on actual tax work. This top-down commitment can translate into more structured and predictable services for businesses, including foreign ones.

Local Implementation

Local tax departments are using various methods to ensure these principles are put into practice. For instance, in Chaoyang City, tax authorities have employed leadership-led study sessions, joint learning with party branches, and on-site learning at red resources to deepen understanding. While these activities are internal, they aim to improve the overall capability of tax officials, which can lead to better service quality for all taxpayers.

In Dandong City, party members and leading cadres have taken the lead in combining learning with action, planning and implementing measures to improve tax service quality. The grassroots party organizations have conducted activities to "make contributions based on one's post," visiting taxpayers to listen to their opinions and implementing 97 improvement measures. Such feedback mechanisms can be beneficial for foreign founders who may have specific concerns or suggestions.

Targeted Services for Enterprises

In Yingkou City, tax authorities have adopted a "one enterprise, one policy" approach, providing precise tax policy services to heating companies and promptly delivering tax incentives. Liu Shaoyang, Party Secretary and Director of the Yingkou Tax Bureau, emphasized not shirking responsibilities when facing taxpayers' urgent difficulties. This tailored approach can be particularly helpful for foreign founders in sectors with specific tax considerations.

Deepening Research and Solving Problems

During the campaign, provincial tax leaders have deepened research and visited grassroots units to understand processes and solve problems. They have addressed over 20 key issues reported by grassroots units and taxpayers. City-level "top leaders" have visited more than 50 county-level tax bureaus, over 60 grassroots party branches, and frontline tax service sites, gathering opinions and solving over 140 practical problems. This hands-on approach indicates a willingness to engage directly with businesses to resolve issues.

In Benxi City, tax officials have conducted "process walks," experiencing tax procedures from the taxpayer's perspective to identify service gaps. For example, Qi Wei, Party Secretary and Director of the Pingshan District Tax Bureau, visited Benxi Fuyao Float Glass Co., Ltd. to check the implementation of tax incentives, examining whether policy push was accurate, tax declaration was smooth, and services were convenient. The company's accountant, Song Yang, welcomed this practical service. Such direct engagement can help foreign founders feel more confident in the tax system's responsiveness.

Smart Service Windows

In Huludao City, the tax bureau has promoted intelligent "inquiry and handling integrated" windows, improving tax payment services. Since the second batch of the campaign, these windows have handled over 50 complex cases with a 100% satisfaction rate. Han Tao, Party Secretary and Director of the Huludao Tax Bureau, stated that they are applying innovative theories to improve service quality. For foreign founders, smart service windows can reduce language and procedural barriers.

Building "Fengqiao-style" Tax Offices

Liaoning's tax system is also focusing on building "Fengqiao-style" tax offices, following guidelines from the State Taxation Administration. These offices aim to strengthen the grassroots foundation of tax authorities and improve service to taxpayers. In Fuxin City, tax authorities have standardized 38 tax offices and service halls, setting up "New Fengqiao Windows" and "New Fengqiao Rooms" to resolve tax disputes promptly and protect taxpayers' rights. This initiative can provide foreign founders with accessible channels for dispute resolution.

Implementing Tax Incentives

Implementing tax and fee reduction policies is a key task. Liaoning's tax system has deepened the "exempt without application" reform, ensuring refunds, reductions, and deferrals are implemented quickly and accurately. Since last year, the province has added over 20 billion yuan in tax reductions, fee cuts, and refunds, helping market entities reduce burdens and increase confidence. For foreign founders, such incentives can lower operational costs.

For example, Zhang Shaoqiang, General Manager of Liaoning Xinhualong Dayou Molybdenum Co., Ltd., reported receiving over 70 million yuan in VAT credit refunds, which alleviated funding difficulties. In Jinzhou City, tax authorities have focused on taxpayers' urgent needs and improved the precision of policy push. These examples show that foreign-invested enterprises can also benefit from such policies if eligible.

Project-Specific Services

Provincial tax leaders have also led activities to enter industrial parks and enterprises, promoting tax policies and solving tax issues for major investment projects. The "bank-tax interaction" initiative helps enterprises solve financing difficulties. Since the second batch of the campaign, the provincial tax system has deepened the "project steward" tax service mechanism, organizing 1,237 tax officials to provide exclusive services to nearly 400 major projects, solving over 300 practical problems and implementing tax incentives exceeding 1 billion yuan. For foreign founders involved in major projects, such dedicated services can be invaluable.

In Shenyang, the Heping District Tax Bureau's project steward team assisted a commercial complex project with a tax deferral application due to an operational error, helping them complete the process for over 70 million yuan in deferred taxes. This kind of hands-on support can be crucial for foreign companies unfamiliar with Chinese tax procedures.

Comprehensive Modernization

In Anshan City, the tax bureau is focusing on five projects: party building, development empowerment, reform foundation, service quality improvement, and team upgrading. Qu Chunguang, Party Secretary and Director of the Anshan Tax Bureau, noted that the campaign has boosted the morale of officials. Such comprehensive efforts aim to create a more efficient and supportive environment for all taxpayers, including foreign-invested enterprises.

Next Steps

Liaoning's tax system will continue to take responsibility for deepening the thematic education campaign, optimizing promotion mechanisms, and tracking progress. They will further integrate the campaign with tax work to advance tax reform and development. For foreign founders, this suggests ongoing improvements in tax services and a continued focus on resolving taxpayer difficulties.

While these initiatives are specific to Liaoning, they reflect a broader direction in China's tax administration towards better service and efficiency. Foreign founders should stay informed about local tax practices and utilize available services to ensure compliance and optimize their operations.

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

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