Published by ChinaMNC · Lingshuilizu

China Tax Chief Visits Xinjiang: Compliance, Not Revenue Targets, Tops the Agenda

A senior State Taxation Administration official toured Xinjiang firms and local tax offices, stressing compliant tax collection, a ban on excessive levies, and stronger grassroots enforcement. Here is what foreign founders operating in China should take away.

What Happened

From August 26 to 28, Hu Jinglin, Secretary of the Party Committee and Commissioner of the State Taxation Administration (STA), visited Urumqi and Turpan in the Xinjiang Uyghur Autonomous Region. According to the STA, the trip covered companies, grassroots tax departments and rural revitalization work on the ground, and included meetings with local tax officials and STA staff assigned to support Xinjiang.

The visit was framed around consolidating a campaign on proper performance evaluation, advancing paired support for Xinjiang, and pushing forward key tax priorities. Hu called for implementing the spirit of the July 30 Politburo meeting and for steady progress toward the targets set for the opening year of the 15th Five-Year Plan period.

Compliance and Revenue Discipline

For foreign founders, the most practical signal from the visit concerns how tax authorities are expected to collect revenue. Hu told tax departments at all levels to collect taxes and fees in accordance with the law and to firmly refrain from collecting "excessive taxes and fees." He also called for a higher standard in the "Strong Foundation Project" for tax and fee administration, deeper compliance management, and more refined and scientific application of tax policy so that policy benefits reach taxpayers faster and more fully.

He further required routine, scientific and precise correction of tax issues linked to the so-called "invoice economy" and to irregular investment promotion activities. In plain terms, local governments and tax bodies are being told not to compete for business through improper tax arrangements, and firms should expect scrutiny of invoicing practices that lack genuine commercial substance.

• Tax collection follows the law: authorities are instructed not to over-collect.
• Compliance management deepens: expect more systematic review of how policies apply to your operations.
• Invoice practices face scrutiny: arrangements tied to the "invoice economy" are explicitly targeted for correction.
• Policy application gets more precise: the goal is faster, more accurate delivery of tax benefits.

Visits to Companies and Local Tax Offices

Hu went to the production line of Xinjiang Ruihong Textile Co., Ltd., where he learned about the company's technological innovation and industry development and solicited its views on tax work. He also visited the Gaochang District tax office in Turpan to review progress on the "Strong Foundation Project" for tax and fee collection and administration at the grassroots level.

At the regional tax bureau in Xinjiang, he inspected an education base on tax reform and development practice and was briefed on the construction of Xinjiang's tax big-data platform. He then held a symposium with heads of regional, municipal, county and township-level tax bodies and with STA staff supporting Xinjiang, hearing their reports and suggestions.

The emphasis on a tax big-data platform is worth noting for foreign-invested companies: tax administration in China increasingly relies on data matching across systems, which raises the value of keeping filings, invoices and accounting records internally consistent.

Paired Support and Rural Work

Hu described paired support for Xinjiang as a major political task assigned by the central authorities and urged tax bureau party committees to increase their support. He asked STA staff assigned to Xinjiang to complete their support tasks to a high standard.

He also visited Yanhu Village in Gaochang District to see the Turpan tax bureau's village work team and review the results of its assistance work. He asked tax officials stationed in villages to carry out their work with a strong sense of community for the Chinese nation, to address pressing concerns of local residents, and to contribute to rural revitalization and to stability in Xinjiang. He added that tax departments at all levels should support these officials in their work and look after their daily needs.

During the trip, Hu also visited an exhibition on Xinjiang's achievements marking the 70th anniversary of the region's establishment. The main officials of the STA's Policy and Law Department and Personnel Department joined the visit and discussions.

Practical Takeaways for Foreign Founders

This was an internal supervisory visit rather than a new policy announcement, so it does not change tax rates or procedures. Its value lies in what it signals about enforcement priorities in the months ahead.

• Expect lawful, not aggressive, collection. The explicit instruction against over-collection is a useful reference point if you face demands that appear to exceed what the law requires.
• Keep invoicing defensible. The focus on the "invoice economy" means transactions should have genuine business substance, with contracts, goods flows and payments that line up.
• Review policy eligibility. With authorities pushing more precise policy application, confirm that the incentives you claim actually fit your facts.
• Maintain data consistency. Big-data platforms compare filings across systems, so align your bookkeeping, VAT filings and customs records.
• Use formal channels. The visit included soliciting company feedback on tax work, a reminder that taxpayer feedback mechanisms exist and can be used.

None of this replaces local advice. Rules differ by region, industry and entity type, and enforcement practice can vary. Founders should confirm their position with a qualified professional and keep documentation ready.

Next Steps

Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.