State Taxation Administration: Achievements in Regulating Illegal Investment Promotion and Tax-Related Issues by 2025

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[Caixin] Regarding the governance of local illegal investment promotion and attracting investment, and serving the construction of a unified national market, the tax authorities will carry out special governance in 2025. The State Taxation Administration (STA) has sent a total of 389 clues about inspection issues to tax authorities at all levels throughout the year. For verified issues, timely investigation and correction will be carried out, promoting local governments to abolish or amend tax-related agreements involving illegal investment promotion. Major problems found will be promptly reported to relevant departments for coordinated rectification.

The STA disclosed these policy measures and achievements on March 2, 2026. In the special governance, the STA explicitly requires local tax authorities not to strategize, participate, cooperate, or turn a blind eye to illegal tax-related behaviors in local investment promotion. Relying on big data in taxation, a monitoring indicator system will be established to focus on abnormal tax filings, income anomalies, and tax exemption irregularities, conducting regular monthly monitoring and analysis.

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