Key Questions Regarding Chinese Tax Law

Abstract

The Chinese tax system was complex in particular historical ways, but it is not excessively complex in terms of more modern taxation. Changes to key tax laws and regulations have been made in recent years to meet international norms and practice, and new tax policies have been adopted to reflect the sustainable development objectives of the government. This seems a move to expansion and complexity. However, those changes and policies introduced by tax reforms since the 1990s have made the system comparatively simpler, fairer, and more effective. This article identifies what challenges the government is facing in furthering tax reforms and what these reforms would mean for taxpayers in China.