Published by ChinaMNC · Liangzhou
China Opens Public Consultation on Draft Local Surcharge Tax Law
Foreign founders in China should note the Ministry of Finance and State Taxation Administration's public consultation on the draft Local Surcharge Tax Law, open until September 27, 2026. This article explains the consultation process and how to submit comments.
China Seeks Public Input on Draft Local Surcharge Tax Law
Foreign founders operating or planning to register a company in China should be aware of a new public consultation that could affect their tax compliance. On August 28, 2026, the Ministry of Finance (MOF) and the State Taxation Administration (STA) jointly released a draft of the Local Surcharge Tax Law of the People's Republic of China for public comment. The consultation period runs until September 27, 2026.
The draft was developed to implement decisions from the Third Plenary Session of the 20th Central Committee of the Communist Party of China. According to the announcement, the MOF and STA conducted thorough research and broadly solicited opinions and suggestions before formulating the draft. The full text of the draft law and an accompanying drafting explanation are available as attachments to the official notice.
Why This Consultation Matters for Foreign Founders
Although the source text does not detail the specific provisions of the draft law, the consultation itself is a key step in China's tax legislation process. For foreign entrepreneurs setting up a business in China, understanding how tax laws are developed and how to participate in consultations can help ensure compliance and allow them to voice concerns. The Local Surcharge Tax Law, once enacted, will likely replace existing regulations on local surcharges, which are additional levies on certain taxes. Foreign founders should monitor this development closely as part of their tax planning.
How to Submit Comments
The MOF and STA have provided two official channels for the public to submit feedback on the draft law. Foreign founders and their advisors can use either method before the deadline.
1. Online Submission
Comments can be submitted online through two government portals:
- Ministry of Finance website: Visit http://www.mof.gov.cn and access the Fiscal Regulations Management System at http://fgk.mof.gov.cn.
- State Taxation Administration website: Go to https://www.chinatax.gov.cn and navigate to the main menu section “互动交流—意见征集” (Interactive Exchange – Opinion Collection) on the homepage.
2. Postal Submission
Written comments can be mailed to either of the following addresses. Please mark the envelope with “中华人民共和国地方附加税法征求意见” (Comments on the Local Surcharge Tax Law of the People's Republic of China).
- Ministry of Finance: Tax Policy Department, No. 3 South Sanxiang, Sanlihe, Xicheng District, Beijing 100820.
- State Taxation Administration: Property and Behavior Tax Department, No. 5 West Yangfangdian Road, Haidian District, Beijing 100038.
What Happens Next
After the consultation period ends on September 27, 2026, the MOF and STA will review the submitted comments. The draft law may be revised based on public feedback before being submitted to the National People's Congress for deliberation. Foreign founders should watch for further announcements regarding the final text and implementation timeline.
For now, those interested in shaping the legislation are encouraged to participate in the consultation. The official notice, along with the draft law and drafting explanation, is available on the MOF and STA websites.
Practical Takeaways for Foreign Founders
- Stay informed: Tax laws in China can change, and public consultations are an early signal of upcoming reforms. Regularly check the MOF and STA websites for updates.
- Engage with advisors: Consult with local tax professionals to understand how proposed changes might affect your business structure and compliance obligations.
- Participate if relevant: If your business is affected by local surcharges, consider submitting comments through the official channels before the deadline.
This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.
Call to Action: Foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535 for help registering and operating a company in China.