On October 26, 2019, State Taxation Administration of P. R. China announced the introduction of preferential taxation on the total income earned from cross-border e-commerce retail exports by qualified e-commerce enterprises.
The tax will be 4 percent on the total income earned from the exports of retail goods and concerns the cross-border e-commerce retail export enterprises in pilot zones selected by the Chinese government. The measure is introduced to support the development of cross-border e-commerce and to promote the innovation of foreign trade. The announcement will enter into force on January 1, 2020.
The measure is applicable to cross-border e-commerce enterprises in the pilot areas that meet the following conditions:

    The e-commerce enterprise has been registered in the pilot area and has registered the date, name, unit of measurement, quantity, unit price and amount of the export goods on the integrated service platform;
    The export goods pass the procedures for declaration of e-commerce export through the customs of the pilot area;
    The export goods are eligible to enjoy the value added tax and consumption tax exemption policy, even if the enterprises have not yet obtained valid receipt certificates.

If the cross-border e-commerce enterprise that has been approved for collection in the comprehensive test area meets the preferential policies of small-scale and low-profit enterprises, it can enjoy the preferential policy of small-scale and low-profit enterprise income tax.