Read in Chinese

Speakers:

Mr. Rao Lixin, deputy commissioner of the State Taxation Administration (STA)

Mr. Huang Yun, spokesperson of the STA and director general of the General Office of the STA

Mr. Shen Xinguo, director general of the Taxpayer Service Department of the STA

Ms. Meng Yuying, director general of the International Taxation Department of the STA

Chairperson:

Mr. Xie Yingjun, deputy director general of the Press Bureau of the State Council Information Office (SCIO) and spokesperson of the SCIO

Date:

Jan. 18, 2024

Xie Yingjun:

Ladies and gentlemen, good morning. Welcome to this press conference held by the State Council Information Office (SCIO). Today, we invited Mr. Rao Lixin, deputy commissioner of the State Taxation Administration (STA), to brief you on harnessing taxation to promote high-quality development, and answer your questions. Also present at today's press conference are Mr. Huang Yun, spokesperson of the STA and director general of the General Office of the STA; Mr. Shen Xinguo, director general of the Taxpayer Service Department of the STA; and Ms. Meng Yuying, director general of the International Taxation Department of the STA.

First, I will give the floor to Mr. Rao Lixin for his introduction.

Rao Lixin:

Thank you, Mr. Xie, and friends from the media. Today marks the Laba Festival according to the Chinese lunar calendar. As the saying goes, "After the Laba Festival, the Chinese New Year is just around the corner." I would like to take this opportunity to extend New Year wishes to you all on behalf of the STA. We sincerely express our gratitude to taxpayers, fee payers and all sectors of society for your concern, understanding and support for the work of the tax departments.

Reflecting on the recently concluded year, under the strong leadership of the Central Committee of the Communist Party of China (CPC) with Comrade Xi Jinping at its core, China's economy rebounded, with substantial progress made in high-quality development. The national tax system adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully implemented the guiding principles of the 20th CPC National Congress. We conducted an education campaign on the study and implementation of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and conscientiously implemented the decisions and arrangements of the CPC Central Committee and the State Council. We steadfastly grasped the primary task of contributing to high-quality development, focusing on main responsibilities and core functions. We faithfully performed our duties, effectively leveraging taxation's fundamental, pillar and guaranteeing roles in national governance.

First, we organized tax and fee revenue collection in accordance with the laws and regulations, striving to establish a robust foundation for financial security. We upheld the sacred mission of "gathering wealth for the country and collecting taxes for the people," shouldering the responsibility of being the "main force" in safeguarding the country's financial resources. In 2023, the total tax and fee revenues for the year amounted to 31.7 trillion yuan ($4.41 trillion, after deducting export tax rebates; the amount before deduction was 33.5 trillion yuan), with 15.9 trillion yuan in tax revenue and 8.2 trillion yuan in social security fees.

Second, we implemented and detailed tax and fee preferential policies, striving to promote economic recovery. The tax authorities actively participated in the research and formulation of preferential tax policies, conscientiously fulfilling its main responsibility for implementing these policies. Since the State Council optimized and improved preferential tax policies in July 2023, the national tax system accurately communicated these policies to more than 670 million households (individuals), enhancing tax administration efficiency from "policy outreach" to "policy implementation." In 2023, the country's newly implemented tax refunds, as well as cuts and deferrals of taxes and fees, exceeded 2.2 trillion yuan, effectively stabilizing market expectations, boosting market confidence and stimulating market vitality.

Third, we continued to optimize tax payment measures, striving to enhance the tax business environment. We carried out the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs" for the 10th consecutive year, introducing a series of tax payment service measures for the public's convenience in five batches. Targeted service measures were launched, with a focus on private economic entities such as micro, small and medium-sized enterprises, aiming to continuously enhance the refinement, intelligence and personalization of tax services. Simultaneously, in collaboration with the All-China Federation of Industry and Commerce, we launched the "Spring Rain to Moisten Seedlings" special campaign, organizing the Service Month and Service Season activities for small and medium-sized enterprises. We conducted a total of over 10,000 other activities, soliciting suggestions throughout the tax payment process and tax service experiences.

Fourth, we effectively improved tax supervision capabilities, striving to maintain the order of the market economy. We continued to enhance the new tax supervision system based on a dynamic "credit plus risk" approach, and took action to address problems in high-risk industries. We fully leveraged the regular working mechanism of the eight departments — taxation, public security, courts, procuratorates, People's Bank of China, customs, market supervision and foreign exchange management — to crack down on tax-related crimes. We investigated and dealt with tax-related illegal cases such as tax evasion and fraudulent tax practices, recovering 181 billion yuan in tax losses of various types. We also increased the exposure of typical cases, effectively maintaining a fair and just economic and taxation order.

Fifth, we have accelerated the building of a smart taxation system and improved the efficiency of tax and fee governance. We have thoroughly implemented the Opinions on Further Deepening the Reform of Tax Collection and Administration issued by the General Office of the CPC Central Committee and the General Office of the State Council. New progress has been made in areas of accurate law enforcement, targeted services, precise supervision, and sincere co-governance. A total of 31 measures concerning the reform of tax collection and administration have been deepened and expanded. We have also promoted smart taxation in an integrated way. In particular, an electronic invoice service platform has been established and put into use across the country, fully digitized electronic invoice pilot projects have seen continuous development, and new electronic taxation bureaus have been launched and expanded. These outcomes showed that the digital upgrading and intelligent transformation of tax and fee collection and administration have moved up to a new level.

Sixth, we have deepened international taxation exchanges and cooperation and concentrated on supporting high-level opening up. We have thoroughly implemented General Secretary Xi Jinping's important discourses on opening up, strengthened the construction of multilateral taxation cooperation platforms, and constantly improved the Belt and Road Initiative Tax Administration Cooperation Mechanism. We hosted a high-level international symposium on the digitalization of taxation administration, built and officially launched "TaxExpress," a cross-border taxation service brand, and continued to expand China's taxation treaty network to 114 countries and regions, better contributing to the strategies of "going global" and "bringing in."

Next, tax departments across the nation will rally more closely around the CPC Central Committee with Comrade Xi Jinping at its core, continue to consolidate and expand the gains from theoretical study programs and advance high-quality taxation practices through a Chinese path to modernization, contributing more and greater strength to building China into a great modern socialist country in all respects and advancing the rejuvenation of the Chinese nation on all fronts. Thank you.

Xie Yingjun:

Thank you. The floor is now open to questions. Please identify the media outlet you represent before raising your questions.

CCTV:

It was emphasized at the recently held Central Economic Work Conference that we should accelerate efforts to build a unified domestic market. Can you share what tax departments have done and will do next to help in this regard? Thank you.

Rao Lixin:

Thanks for your question and I will answer it. The construction of a unified domestic market is fundamental and essential for the building of the new development paradigm. The tax departments have deeply implemented the Guideline of the CPC Central Committee and the State Council on Accelerating the Establishment of a Unified Domestic Market and taken strong and effective measures to truly perform their duties, actively advancing the building of a unified domestic market.

First, we have strengthened tax and fee policy certainty. Since 2023, in line with the decisions and deployment of the CPC Central Committee and the State Council, the STA has worked together with the Ministry of Finance and other departments to issue documents in a timely manner to clarify 77 preferential tax and fee policies that have been extended, optimized, and improved. This helps further stabilize market expectations. We have also constantly improved the working mechanism for implementing preferential tax and fee policies, actively collected and replied to questions raised by taxpayers and fee payers, and responded to concerns from all respects in a timely manner. In 2023, focusing on the extended, optimized, and improved preferential tax and fee policies, the STA released a total of 115 replies to unify operations across different regions, enhancing the certainty in policy enforcement.

Second, tax law enforcement has been further standardized. We have revised and improved the Operation Specifications for Tax Collection and Administration, setting unified operation standards for taxation administration across the country. We have also dynamically updated the National Taxpayer Service Standard, providing basic taxation services in a unified way. Based on the system of benchmarks for administrative taxation penalty discretion by each province, we have promoted regional taxation authorities to jointly launch unified discretion benchmarks that are applicable to the whole region. The efforts cover regions such as the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the northeastern, southwestern, central-southern and northwestern regions of the country. Law enforcement information is shared and law enforcement results are mutually recognized, laying the foundation for the formulation of the unified national-level discretion benchmarks for administrative taxation penalties. Moreover, we have acted on fair competition review mechanisms and removed policy measures that hindered market unification and fair competition, working to create a fair and just taxation environment.

Third, we have enhanced the convenience of tax services. We have promoted tax-related services on an inter-provincial basis. Based on pilot programs in the Beijing-Tianjin-Hebei, Yangtze River Delta, Chengdu-Chongqing Economic Circle and other regions, we have implemented measures nationwide to facilitate tax services for corporate taxpayers applying for inter-regional (provincial) business relocation since April 2023. We have improved the handling procedures and cut the processing time to make it more convenient for enterprises to operate in different regions (provinces). We have developed an interactive service mechanism for tax administration with features including "precise information push, intelligent interaction, collaboration between inquiring and handling, and whole-process interaction." Channels for tax business handling and tax consulting services have been streamlined to ensure enterprises are able to receive intelligent, efficient, targeted and convenient services in a timely manner. In 2023, we provided taxpayers with interactive services a total of 10.91 million times. We used the internet to deliver video Q&A sessions, where we answered online, face to face taxpayers' questions on policies, procedures and other issues, achieving "one person answers questions for the benefit of many." In 2023, we held 2,324 video Q&A sessions and answered 267,000 questions. These sessions were watched nearly 6 million times.

Next, the tax authorities will thoroughly implement the arrangements and requirements of the CPC Central Committee and the State Council on accelerating the establishment of a unified domestic market, carry out administrative law enforcement in a strict, standardized, impartial and civilized manner, continue to improve the tax collection and administration system, strictly investigate and handle cases involving tax-related issues in investment promotion activities, and help boost the building of a unified national market that is efficient, standardized, open and allows fair competition. Thank you.

Yicai:

Taxation is a barometer of the economy. What highlights in the nation's high-quality economic development can be seen from the 2023 tax data? Thank you. 

Huang Yun:

Thank you for your question. We firmly adhere to the thinking that high-quality development is of paramount importance in the new era. The State Taxation Administration (STA) has utilized tax data to build a statistical indicator system on high-quality development. The relevant analysis shows that in 2023, under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, the country made new progress in promoting high-quality development. I would like to share with you 10 sets of figures:

First, enterprises continued to increase their investment in innovation, and enjoyed a 13.6% increase year on year in the amount of extra tax deductions for R&D expenses. Corporate income tax prepayment declaration data shows that in the first three quarters of 2023, businesses across the country applied for extra tax deductions for R&D expenses totaling 1.85 trillion yuan. Corporate taxpayers from the manufacturing sector benefited the most, claiming 58.9% of the total. The figure for the full year will be bigger, however it is still being calculated. 

Second, innovative industries grew at a faster pace, and the revenue of high-tech industries increased by 9.8% year on year in 2023. Value-added tax (VAT) invoice data shows that in 2023, the revenue of high-tech industries maintained rapid growth, with its proportion of the total revenue of Chinese enterprises rising by 0.5 percentage point from 2022. This momentum has been picking up, reflecting the remarkable output value of innovation-driven industries in recent years.

Third, innovations and breakthroughs were seen in the high-end manufacturing sector, and equipment manufacturing rose to 44.8% of the aggregate revenue of the manufacturing industry. VAT invoice data shows that in 2023, revenue from equipment manufacturing rose by 6.4% year on year, 2.9 percentage points higher than the average growth rate of manufacturing, and its ratio in overall revenue of manufacturing rose by 1.2 percentage points compared to 2022. Sales related to the "new three" products — electric passenger vehicles, lithium-ion batteries and solar cells — jumped 22.4% year on year.

Fourth, the digital economy's integration with the real economy is speeding up, with 12.1% of total sales revenue of the digital economy coming from its core industries. VAT invoice data shows that in 2023, the digital economy's core industries posted an 8.7% revenue increase, up 2.1 percentage points from 2022, while Chinese enterprises' digital procurement spending jumped by 10.1% year on year, an increase of 3.2 percentage points from 2022. The trends indicate that the integration of the digital and real economies has been spurring digital industrialization and industrial digitization.

Fifth, we have accelerated the building of a national unified market. The inter-provincial trade volume now accounts for 42.7% of the national total. Value-added tax invoice data shows that inter-provincial trade volume, an indicator of trade ties among provinces, grew by 5.9%. It also increased by 0.5 percentage point in its share of the national total trade volume compared to 2022. This represents continuous improvement year on year and a smoother domestic economic cycle.

Sixth, three major areas with impetus for growth have played a more important role in driving economic growth, with their sales revenue accounting for 54.1% of the national total. According to value-added tax invoice data, in 2023, the economies of the Beijing-Tianjin-Hebei region, the Yangtze River Delta, and the Pearl River Delta developed rapidly in general. Their combined sales revenue was up by 5.4% year on year, taking 0.3 percentage point more as a share of China's total revenue than in 2022.

Seventh, we have advanced the green transformation of industries, with the share of energy-intensive manufacturers in the manufacturing sector dropping to 30.7%. Value-added tax invoice data shows that in 2023, industrial enterprises increased their green investment at a faster pace, with a year-on-year increase of 17.7% in the purchase of environmental governance services. Additionally, the proportion of manufacturers with high energy consumption in the manufacturing sector fell by 1.5 percentage points from 2022.

Eighth, reinvestment of profit by foreign-invested enterprises has achieved steady growth, with the amount of reinvestment enjoying tax deferral reaching 141.2 billion yuan. Corporate income tax data shows that in 2023, reinvestment of profits of overseas investors increased by 0.8% year on year. Since the implementation of the preferential policy in 2018, which temporarily exempts profits obtained by overseas investors from withholding income tax, these investors have enjoyed a total of 660.3 billion yuan in reinvestments with deferred tax.

Ninth, efforts to unleash consumption potential have been successful, with both goods and services consumption growing at around 10%. According to value-added tax invoice data, in 2023, sales revenue from the consumption of goods and services increased by 11.4% and 9% year on year, respectively. Specifically, retail sales of clothing and cosmetics grew by 18.3% and 14.5% year on year, respectively. The theme park, accommodation, and restaurant sectors reported robust growth, increasing by 69.5%, 26.3%, and 19.6%, respectively.

Tenth, we have further improved social security benefits, with insurance premium income exceeding 8 trillion yuan. Data from the tax authorities shows that China's insurance premium income totaled 8.2 trillion yuan in 2023, with more than 1.3 billion people receiving payment services. This has significantly helped China build the world's largest social security system with distinct Chinese characteristics. Thank you!

Tide News under Zhejiang Daily:

The business environment concerning tax payments is a significant concern for taxpayers. In 2023, tax authorities launched the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs," rolling out a series of measures to simplify the tax payment process for taxpayers. How were these measures implemented and what are the next steps? Thank you.

Shen Xinguo:

Thank you for your questions. In 2023, the tax authorities conducted the "Spring Breeze Action to Facilitate Citizens' Handling of Tax Affairs" under the theme of "improving and modernizing services to benefit people." We introduced various service measures in a comprehensive effort to increase people's sense of gain and satisfaction. A taxpayer satisfaction survey conducted by a third party revealed that the score rose to 89.24 in 2023.

First, make sure policies deliver solid benefits. The tax authorities have utilized big data to match tax policies with appropriate recipients based on their industries, enterprise types, and individual information. This approach ensures that eligible enterprises receive timely policies tailored to their needs. The authorities have also provided specific information to legal representatives, financial officers, and taxpayers according to their roles and sent timely reminders before, during, and after the business process. Since July 2023, 1.49 billion pieces of information have been delivered to 670 million households and individuals. This strategy has helped achieve accurate policy delivery to the target groups and ensured that eligible enterprises quickly and directly benefit from preferential tax and fee policies.

Second, we have upgraded services and resolved problems. We have improved the system for meeting taxpayers' service expectations and effectively handled problems through coordination across different levels. In 2023, tax departments across the country resolved a total of 814 common demands from taxpayers or withholding agents. By addressing one problem, we achieved the effect of resolving one category of issue and upgraded related services. We have focused on the demands of enterprises facing unstable operations in their industrial and supply chains. On the premise of respecting these enterprises' wishes, we have utilized tax-related big data and provided platforms and opportunities, helping them to purchase and sell products worth 21.3 billion yuan last year. We have made great efforts to address the difficulties faced by small and micro enterprises in accessing financing, deepening and expanding the interaction between tax departments and the banking sector, and further lowering the thresholds for the participation of small- and medium-sized banks. We ensured small and micro enterprises received 8.928 million loans, totaling 2.84 trillion yuan, from banks in 2023.

Third, we have promoted smart tax services and improved the experience for all concerned. We have fully utilized IT-based approaches to upgrade tax services and ensure they are smarter. The e-taxation platform continues to innovate by advancing the "smart opening of new businesses" and promoting the electronic tax payment services on a cross-provincial basis. In 2023, 710,000 electronic interprovincial tax payments involving 84.4 billion yuan were completed, which greatly facilitates enterprises' production and operation. We have advanced non-resident cross-border online tax services. A total of 172 non-resident enterprises from more than 20 countries and regions accessed online tax services, such as convenient data collection, declaration, and payment. Taxpayers have experienced upgraded cross-border tax services.

Fourth, we have focused on clear priorities for bettering lives. Targeted measures have been rolled out to upgrade tax services in areas crucial to people's lives, such as the payment of social insurance premiums and the settlement of individual income tax. We encourage the online operation and payment of social insurance premiums. The online payment of social insurance premiums by enterprises and individuals exceeded 95% of the total. Over 3,800 tax service centers and government service centers nationwide offer one-stop services. The preferential tax rebate policy has been applied to the individual income tax settlement for comprehensive income. This ensures that taxpayers, especially those who have older adults or young dependents or are facing high medical expenses, can quickly receive the dividends of tax refunds. This policy has benefited 33.845 million people.

In 2024, taxation authorities will fully implement the guidelines issued by the State Council on further enhancing the quality and efficiency of government services, adapting to new situations, and meeting the new demands and expectations of the people. We will introduce more pragmatic, effective, and targeted services and measures based on the system for meeting public expectations related to tax services. We will intensify our efforts to improve convenience for the public. Thank you.

Phoenix TV:

We understand that the Central Economic Work Conference has attached high importance to support for scientific and technological innovation. In the field of taxation, the additional tax deduction for R&D expenses plays an important role in supporting innovation. Please introduce the related policy, its implementation, and its effects. Thank you.

Huang Yun:

Thank you for your question. In 2023, China continuously upgraded its preferential tax policy and encouraged enterprises to increase their R&D investment. The full and targeted implementation of the policy delivers real benefits to enterprises through tax and fee cuts, which effectively boosts their confidence in R&D investment and injects more momentum into their innovative development. This is mainly reflected in the following three aspects:

First, the policy has been pursued with intensified efforts to increase support. In March 2023, the additional tax deduction for R&D expenses for eligible enterprises was raised from 75% to 100%, which has been implemented as a long-term institutional arrangement. Building on that, we have focused on the high-quality development of the integrated circuit and machine tool industries, where the additional tax deduction for R&D expenses has been increased to 120%. In accordance with the deployments of the State Council, the State Taxation Administration, in coordination with the Ministry of Finance, added another opportunity for enterprises to access the additional tax deduction for R&D expenses in July when they declare tax prepayment. This is in addition to the existing two periods: declaring tax prepayment in October as well as making the final settlement. This guides enterprises to receive policy dividends earlier and more promptly.

Second, policy implementation has been more targeted. The tax departments have compiled the Implementation Guidelines for the Policy of Additional Deduction of Research and Development Expenses (Version 2.0), released two batches of 20 Q&As to explain policies and strengthened training and guidance in innovative ways to facilitate taxpayer benefits from the policies. At the same time, we used taxation big data to send policy notifications in a targeted way at different times and with different emphases, took multiple measures to achieve a targeted approach in connecting policies with individuals, and helped innovative enterprises promptly benefit from the policies.

Third, the policies have gradually taken effect. Currently, the annual enterprise income tax settlement for 2023 is being carried out in an orderly manner. Based on the enterprise income tax prepayment declaration for 2023, the total amount of additional deduction for R&D expenses of enterprises reached 1.85 trillion yuan, a year-on-year increase of 13.6%. Among it, manufacturing enterprises accounted for nearly 60%, with a total amount of 1.1 trillion yuan of additional deduction. Big data in tax administration also shows that enterprises benefiting from the preferential policy of additional deduction for R&D expenses have a profit margin of 7.4%, higher than the average level of all enterprises.

Next, the tax departments will follow the arrangements and requirements of the Central Economic Work Conference and conscientiously implement preferential tax policies to support scientific and technological innovation. Efforts will be made to continuously improve the level of facilitation of policies and better support high-level self-reliance and greater strength in science and technology, as well as innovation and development of enterprises. Thanks.

zhonghongwang.com:

We have noticed that the tax departments have launched the TaxExpress brand for cross-border tax services. TaxExpress has received wide attention from both Chinese companies going abroad and foreign companies in China. Could you brief us on the latest progress? Thanks.

Meng Yuying:

Thank you for your question. 2023 marked the 10th anniversary of the Belt and Road Initiative. The tax departments took this opportunity to integrate and innovate, launching the TaxExpress brand for cross-border tax services. It aims to provide taxpayers with more professional, standardized, and internationalized tax services.

First, we have established distinctive brands, and the service matrix has begun to take shape. Since the release of the TaxExpress, all provincial-level tax bureaus in the country have created their own TaxExpress sub-brands based on regional characteristics, and have conducted a series of policy promotion activities and cross-departmental collaborative services. For example, in Zhejiang, the sub-brand TaxExpress-In Zhejiang has optimized the Belt and Road tax service projects and held policy promotion activities specifically targeting the RCEP for ASEAN. In Shandong, the sub-brand TaxExpress-Tax Home has cooperated with the provincial overseas Chinese federation, commerce department, and the Foreign Affairs Office to release the Proposal for Cross-border Tax Service Alliance and introduced six service measures, including the establishment of innovative practice bases.

Second, we have set up expert teams to address difficulties and problems. The STA and provincial tax bureaus have set up cross-departmental expert teams to collect complex issues through field research and discussions with enterprises. And they actively resolved the tax-related demands of cross-border taxpayers. For example, in response to the tax-related certification requirements of Chinese companies for the U.S. FDA Medical Small Business Qualification and Certification, local governments have been encouraged and guided to innovate their working methods and optimize processing procedures. Yesterday, the STA held a seminar with foreign chambers of commerce in China to further collect tax-related demands of foreign enterprises and assist in resolving difficult issues.

Third, we have improved the service mechanism and ensured smooth channels of communication between the tax authorities and enterprises. A national 12366 cross-border tax service hotline has been launched, providing tax-related consultation services in both Chinese and English 117,000 times for both Chinese companies going abroad and foreign companies in China. We have launched an English intelligent voice system providing round-the-clock real-time customer services by online virtual agents. At the same time, we used information technology to send tax policies in a targeted way and delivered country (regional) specific investment tax guides and the statements of benefits of tax cut and fee reduction to over 130,000 cross-border taxpayers throughout the year.

Fourth, we have updated our knowledge products and are now providing one-stop services for cross-border investment. The service brand "Shuilutong" has introduced four cross-border investment and taxation knowledge products. These include investment and taxation information for 105 countries and regions, 99 overseas taxation items, 15 overseas taxation cases, and 34 frequently asked questions by cross-border tax and fee payers. These products are available on the official website of the State Taxation Administration and in the "Belt and Road" section of the WeChat account "Shuilutong Tax Services."

In 2024, tax departments will continue to expand the services of "Shuilutong," deepen research on tax policies of various countries and regions, assist enterprises with overseas business in utilizing tax policies and tools, implement preferential taxation policies for foreign-invested companies, and contribute to high-level opening up. Thank you.

Cover News:

In 2023, tax departments investigated and exposed a number of typical cases of tax evasion and achieved positive results. Could you provide details about these cases? Additionally, what is this year's plan for combating tax-related illegal activities? Thank you.

Huang Yun:

Thank you for your questions. The tax departments have been rigorously enforcing laws against tax-related crimes as an effective way to optimize the taxation and business environment. In 2023, the tax departments investigated and penalized 135,000 illegal taxpayers in accordance with the law, recovering 181 billion yuan in various types of tax losses. They also collaborated with public security departments to take compulsory measures against 8,228 suspects, resulting in 539 surrendering to the authorities. The tax departments have upheld orderly economic taxation based on the rule of law and justice.

First, we have cracked down on tax fraud through the issuance of false invoices. By focusing on tax-related illegal activities such as issuing false invoices from fake enterprises, falsifying export refund claims, and making deceptive declarations for tax preferences, we have worked with relevant departments to implement targeted measures. We investigated a batch of illegal companies and dismantled a number of criminal gangs. In 2023, we handled 5,042 cases of illegal tax breaks and investigated 2,599 companies suspected of defrauding export tax rebates, retrieving about 16.6 billion yuan in export tax refund losses.

Second, we stepped up efforts to regulate key industries and sectors. We launched a special campaign focusing on potential tax-related violations in major industries and fields, and we tightened our efforts to investigate a batch of major tax evasion cases. In particular, we enhanced taxation supervision in the cultural and entertainment fields, investigated typical tax evasion cases involving celebrities and livestreamers, regulated the taxation order in these industries, and promoted the healthy development of relevant sectors.

Third, we explored an integrated mechanism involving multiple departments to combat violations. In 2023, the Supreme People's Court and the General Administration of Market Regulation joined the regular mechanism for joint crackdown on tax-related violations, increasing the number of participating departments from six to eight. This mechanism covers the whole work process, including administrative law enforcement and criminal justice, enabling an integrated crackdown on tax-related illegal activities. The departments jointly launched the "Sharp Sword 2023" campaign, dismantling 127 tax-related organized criminal gangs, and arrested 1,619 criminal suspects through cross-regional and cross-departmental data sharing, as well as joint analysis and research.

Fourth, we continued to expose cases to enhance deterrence against illegal behavior. We increased the exposure of typical cases of tax violations, disclosing 243 cases throughout the year in accordance with the level and category of each case. Meanwhile, we strengthened the systems of incentives and punishments involving various departments and strictly implemented the blacklist system for tax violations. We disclosed 17,324 major cases of tax violations and dishonesty.

In 2024, tax departments will join relevant departments to combat all kinds of tax violations, especially professional and gang-style crimes and instigators and colluders. We will implement law-based and targeted measures, comprehensive governance, and expose them regularly and for a long-term, striving to build a more standardized and orderly taxation and business environment that showcases law-based governance and justice. Thank you. 

Xie Yingjun:

Due to time constraints, the last two questions, please.

21st Century Business Herald:

Promoting green and low-carbon development is crucial to high-quality development. I would like to ask what work the tax departments have done to support green and low-carbon development. What are the next plans? Thank you.

Shen Xinguo:

Thanks for your questions. In 2023, the tax departments fully studied and implemented Xi Jinping Thought on Ecological Civilization, actively advanced the building of a green taxation system and the implementation of policies, contributing to the strength of taxation to build a beautiful China.

Firstly, the green taxation system, featuring joint governance of various types of taxes, has played an effective role. The tax departments have adhered to the principle of tax administration in accordance with the law and fully implemented the green tax laws and regulations, including the Environmental Protection Tax Law and the Resource Tax Law, to help protect the ecological environment and promote the efficient and economical use of resources. For example, through the guiding mechanism that the volume of the discharged pollutants determines the amount of the tax, the Environmental Protection Tax forces enterprises to reduce pollution emissions, strengthen environmental governance, and develop a circular economy. In 2023, the annual tax revenue reached 20.5 billion yuan. As another example, the Resource Tax has developed a tax adjustment mechanism that is directly linked to the market price of resource products by establishing a method of taxation on an ad valorem basis to encourage enterprises to rationally develop and utilize resources. The annual tax revenue in 2023 stood at 307 billion yuan.

Second, a system of combined preferential policies has contributed to green development. The tax departments have efficiently implemented green tax breaks related to corporate income tax, value-added tax, and vehicle purchase tax to encourage enterprises to pursue green and high-quality development. For example, in 2023, tax reductions and exemptions for products involving comprehensive utilization of resources reached 16.7 billion yuan, while immediate collection and refunds of value-added tax for relevant products and services stood at 56.4 billion yuan, promoting both resource conservation and "turning waste into treasure." Moreover, new energy vehicles are exempted from vehicle purchase tax and vehicle and vessel tax, amounting to 121.8 billion yuan, and promoting carbon reduction and emission reduction in the automobile industry.

Third, a coordination mechanism for tax collection and administration featuring cooperation among different departments has built synergy for oversight. The tax departments have strengthened cooperation with relevant departments from ministries including ecology and environment, and natural resources, on joint control and administration, joint incentives, and joint punishment, providing strong support for green development. For example, the tax departments and ecology and natural resources department have established a coordination mechanism for environmental protection tax collection and administration featuring tax collection and administration, enterprise declaration, environmental monitoring, information sharing, cooperation, and joint governance. In 2023, the two departments exchanged about 40 million pieces of information, making improvements in both tax collection, administrative, and environmental protection capacities. 

Next, the tax departments will fully and faithfully apply the new development philosophy on all fronts and take proactive steps to advance a green and low-carbon development of taxation services from a higher position and with a broader vision and greater endeavors. Thank you.

Red Star News:

It has been three years since the implementation of the guidelines on further deepening reform of the tax collection and administration system issued by the General Office of the CPC Central Committee and the General Office of the State Council. What progress and achievements have been made by the tax departments in implementing the guidelines? Thank you.

Rao Lixin:

Thank you for your questions. Over the past three years, the tax departments have fully implemented the guidelines on further deepening reform of the tax collection and administration system issued by the General Office of the CPC Central Committee and the General Office of the State Council. Focusing on building a smart taxation system and advancing accurate law enforcement, refined services, precise supervision, and faithful co-governance, the tax departments have launched over 200 reforms and innovative measures, deepening and consolidating the reform of the tax collection and administration system. 

According to the mid-term review of the implementation of the guidelines organized by the State Taxation Administration in the fourth quarter of 2023, notable progress has been made in both the development of the smart taxation system and advancement of accurate law enforcement, refined services, precise supervision, and faithful co-governance. For example, as I just mentioned, with the application of the comprehensive digital electronic invoice service platform nationwide and the launch of a new, larger-scale e-tax bureau, we have gradually established a unified smart application platform that covers taxpayers, tax officers, and decision-makers. Most tax and fee data have been intelligently collected. We have established a mechanism for regular "head-to-head" data sharing with 24 departments, effectively promoting the digital transformation and upgrading of tax collection and administration. We have strengthened internal control and supervision of tax law enforcement, with all prevention and control measures for high-risk points embedded in the information system and running automatically, effectively regulating acts of tax law enforcement. We have improved a new dynamic supervision mechanism based on both credit and risk, driven by data and rules, and accurately targeted high-risk taxpayers, strongly improving the effectiveness of tax supervision. We have analyzed social and economic operations based on the regular tracking and monitoring of big data for tax and fees. This has further enhanced the capacity of taxation to serve state governance.

Overall, in the past few years, the comprehensive score of taxpayer satisfaction surveys has risen from 86.1 points in 2020 to 89.24 points in 2023, suggesting that significant progress has been achieved in deepening reform of the tax collection and administration system.

2024 is a year of consolidating and advancing the implementation of these guidelines. The tax departments will comprehensively carry out actions to further deepen the reform on tax collection and administration; give play to the effect of major transformations in technology, business, and organization in an integrated way; and strive to build a world-class smart taxation system with Chinese characteristics, opening a new page in taxation practices that will advance Chinese modernization in a high-quality manner. Thank you.

Xie Yingjun:

Thanks to the speakers for the introduction. Thank you to all the media for your participation. Today's briefing is hereby concluded. See you.

Translated and edited by Wang Yiming, Wang Wei, Zhou Jing, Zhang Junmian, Liu Sitong, Cui Can, He Shan, Wang Yanfang, Huang Shan, Yan Xiaoqing, Liu Jianing, Liu Qiang, Xu Kailin, Li Huiru, David Ball, Tom Arnsten, and Jay Birbeck. In case of any discrepancy between the English and Chinese texts, the Chinese version is deemed to prevail.