Aug. 9, 2025 - China’s State Taxation Administration issued Announcement No. 17 of 2025 on July 7, revising the corporate income tax prepayment declaration forms with major implications for export businesses. Effective October 1, the new rules introduce detailed reporting requirements on export modes and income classification, effectively ending the long-used “export under another’s name” practice.

The updated forms require enterprises to separately declare self-operated export revenue, entrusted export revenue, and export agency fee income, enabling full-chain visibility of export transactions. Export agents must now submit an “Entrusted Export Summary” listing the actual producer or seller, taxpayer identification, and export values for each customs declaration. Failure to report accurate entrusted-party information will result in the agent being taxed on the full export value as if it were self-operated.

This regulation effectively closes tax evasion loopholes, marking the end of tax-free exports. By cross-checking customs data with tax declarations, authorities can more easily flag high-risk entities such as proxy exporters, those using special trade modes, and firms delaying revenue recognition.

Industry observers note that while the move tightens compliance, it also levels the playing field, curbs unfair competition, and aligns with China’s push for high-quality, sustainable trade growth amid rising global anti-dumping actions.