This edition of China – Looking Ahead comes at a precarious and symbolically charged time, with the 12-year Chinese zodiac cycle about to end and a new one about to begin. KPMG China’s Head of Tax Lewis Lu highlights the key topics.

In 2020, taxpayers should be alert for the following China tax developments and trends.

The Hong Kong SAR government has continued its international focus, introducing incentives to boost competitiveness while taking steps to address global tax avoidance, write Curtis Ng and Ivor Morris.

China has continued to improve access to tax incentives and provide new regulatory support for innovation. At the same time, renewed rigour is being applied to ensure that tax incentives are claimed appropriately. Bin Yang and Nicole Cao detail the landscape.

In 2019, China has pushed reforms to customs supervision and expanded the role of bonded zones, further intensified its use of TP documentation for customs purposes, and sought to refresh key trade agreements. Eric Zhou and Rachel Tao explore the challenges and opportunities.

In 2019, the major individual income tax (IIT) reform initiated in 2018 was reinforced with a string of clarifications. Chinese tax residents and foreigners with exposure to Chinese IIT are coming up to speed with the changes. Michelle Zhou explores the issues.