Announcement of New Tax Policy in China from October 1, 2025 – What Businesses Need to Know
From October 1, 2025, China will implement a new Corporate Income Tax (CIT) policy under Announcement No. 17/2025. This policy will not directly change customs procedures but will impact selling prices, invoicing processes, and import costs. What do businesses need to prepare to avoid supply chain disruptions, additional costs, and ensure smooth customs clearance?
Overview of China’s New CIT Policy
China’s State Taxation Administration has issued Announcement No. 17/2025, effective from October 1, 2025, which amends regulations related to the declaration and provisional payment of Corporate Income Tax (CIT).
Overview of China’s New CIT Policy
This policy does not directly affect export customs procedures, but it requires Chinese businesses to declare their taxes more strictly and transparently. This will make the process of issuing VAT invoices (fapiao) more rigorous, and many suppliers may adjust their selling prices to offset tax costs, which could affect import costs into Vietnam.
Key Changes Businesses Should Note
Key Changes Businesses Should Note
Chinese Suppliers Will Require More Detailed Customer Records
Effective October 1, 2025, many Chinese suppliers will require their Vietnamese partners to provide:
- A legally sealed sales contract
- Business registration license and tax code
- Documents verifying the representative for transactions
This is to formalize the issuance of VAT invoices and ensure CIT declarations comply with regulations. Failure to comply may lead to delayed or rejected orders.
Selling Prices May Increase Due to More Transparent Tax Obligations
Previously, some suppliers might sell goods without issuing invoices to reduce tax obligations. However, from October 1, 2025, the mandatory issuance of invoices and CIT declaration may cause selling prices to increase by 5–15% to cover tax costs.
This particularly affects large-value orders or those requiring proper documentation (fapiao, CO, CQ…) for official customs clearance in Vietnam.
Risk of Order Delays
The change in the CIT declaration mechanism may mean that many suppliers are not yet fully adapted, leading to:
- Slow invoice issuance
- Incomplete documentation
- Delays in the customs clearance process at ports
Importing businesses should closely monitor the plans and progress of their Chinese partners to manage their time proactively and avoid inventory shortages.
What Vietnamese Businesses Should Do to Adapt to the New Policy
What Vietnamese Businesses Should Do to Adapt to the New Policy
To minimize the risks of costs and supply chain disruptions, businesses should:
- Communicate early with suppliers about the new requirements
- Prepare legal documents, business licenses, and tax codes in advance
- Carefully check invoices and documents to avoid errors during customs declaration
- Establish a financial contingency plan in case import costs increase
- Regularly follow up on new information from China’s State Taxation Administration to adjust import strategies
Viet Trung Company – Partnering with Businesses to Navigate Policy Changes
With over 15 years of experience in logistics and Sino-Vietnamese imports,Viet Trung Company continuously monitors legal changes and updates on the latest tax policies to provide timely support to our customers.
Viet Trung Company – Partnering with Businesses to Navigate Policy Changes
We offer all-inclusive services including:
- Consulting on the new CIT policy and related import regulations
- Verifying supplier documents and valid certificates to avoid customs risks
- Executing customs clearance, tax declarations, and official transportation quickly and safely
- Strategic consulting for import optimization, cost-saving, and risk mitigation
Viet Trung Company – A reliable strategic partner for businesses importing goods from China to Vietnam in a context of continuous policy changes.
Contact Information:
VIET TRUNG TRADE PROMOTION COMPANY
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