CHINA – Tax Residency Certificate changes: what you need to know

China’s State Taxation Administration (STA) has introduced significant updates to the Certificate of Tax Residency, which took effect on April 1, 2025. These updates include fully digital applications through the Electronic Taxation Bureau, reduced processing times to seven working days, and increased flexibility for tax treaty benefits or verification purposes. The goal is to streamline the process and enhance efficiency for cross-border financial and legal activities.

What is the Certificate of Tax Residency?

The Certificate of Tax Residency is a document issued by the Chinese tax authorities that confirms an individual or entity’s tax residency status in China.

It is crucial for ensuring compliance with Chinese tax regulations and plays an important role in facilitating the application of tax treaty benefits between China and other countries.

This certificate helps minimize the overall tax burden for individuals and businesses engaged in cross-border activities by providing relief from double taxation and access to preferential tax treatments.

What are the main changes in the application process?

One of the most notable changes is the expansion of application scenarios. Applicants can now request a Certificate of Tax Residency for two distinct purposes: enjoying agreement treatment for tax treaty benefits (1) or not enjoying agreement treatment for other regulatory or business purposes (2). This flexibility allows taxpayers to select the appropriate application purpose based on their individual tax and business needs.

Another major change is the digitization of the application process. We can now apply for the Certificate of Tax Residency through the Electronic Taxation Bureau’s online platforms, eliminating the need for physical visits to tax offices, enhancing convenience and efficiency through the process. This allows our team to assist you fully remotely without the needs for you to travel.

The Certificate’s content has also been updated to include the tax identification number (TIN) and optional partnership information, while the requirement for the signature of the tax authority’s officer has been removed. These improvements enhance the certificate’s credibility for international use.

Finally, the processing time for applications has been reduced from 10 to 7 working days.

Our Team can assist you through the new application system

Our dedicated tax expert team is here to assist you every step of the way in order to maximize your benefits under the new system. Whether you need help understanding the new application process, ensuring compliance, or optimizing your tax liabilities, our tax team can provide the guidance and support you need.

Please do not hesitate to contact us through contact@orbis-alliance.com.