Tax & Finance Monthly Report — October 2026

📅 Reporting Period

October 1, 2026 — October 31, 2026

I. Key Policy Updates This Month

1.1 October Major Filing Period Extended to the 26th

Date: October 26, 2026 Source: STA Office Notice on Clarifying 2026 Filing Deadlines (Shui Zong Ban Zheng Zheng Ke Han [2025] No. 64)

Due to the National Day holiday from October 1–7 (7 days off), per Article 109 of the “Implementation Regulations of the Tax Collection and Administration Law,” the October filing deadline is extended to October 26 (Monday).

Taxes to File:

• VAT, consumption tax, urban maintenance and construction tax
• Education surcharge, local education surcharge
• Cultural construction fee
• Individual Income Tax (September period)
• Corporate Income Tax (Q3 prepayment)
• Assessed stamp duty
• Environmental protection tax, resource tax

Practical Recommendations:

1. What is extended is the “filing deadline,” not the “tax period”: quarterly filers are filing for Q3 2026 (July–September); monthly filers are filing for the September period
2. Local execution may vary slightly; file early to avoid late fees or credit deductions
3. This month is a “major filing period” with many tax types and large filing volumes — plan your time and file off-peak

1.2 New IIT Withholding Rules for Platform Streamers and Content Creators Take Effect

Effective: October 1, 2026 Source: STA Announcement No. 16 of 2025

From October 1, 2026, major platforms including Douyin, Kuaishou, Bilibili and Weibo have all changed how they withhold IIT for individual streamers and content creators (UP hosts).

Key Changes:

Treatment of Existing Balances:

• For earnings received before September 2026 that were withdrawable but never withdrawn, all treated as September 2026 period income
• Platforms calculate and withhold tax centrally between September 15–30, filing in October

Practical Recommendations:

1. Multi-platform workers should note: platform withholding is only an interim step. During next year’s comprehensive income annual settlement, labor remuneration from all platforms will be combined. After deducting the 60,000 yuan basic allowance and special additional deductions, any difference will be refunded or supplemented
2. Closes the previous loophole of “keeping earnings on platform for a long time, withdrawing in batches to lower tax rates”
3. Platforms must complete system upgrades to adapt to the new withholding rules

1.3 Disability Employment Security Fund Annual Review Deadline: October 31

Deadline: October 31, 2026 Source: Local Disabled Persons’ Federation and tax authority notices

The annual review of the Disability Employment Security Fund (DESF) is a mandatory annual process. The 2026 review period for proportional employment of persons with disabilities runs from March 1 to October 31.

Key Points:

Calculation Formula:

Annual DESF = (Previous year's total employees × Local required placement ratio − Previous year's actual disabled employees placed) × Previous year's average annual wage per employee

Practical Recommendations:

1. Failure to file within the prescribed period is treated as having placed no disabled employees, resulting in full DESF assessment
2. Review comes first (DPF system), payment comes second (tax portal) — complete the review before the payment window
3. Other provinces’ filing windows follow local DPF and tax authority notices

1.4 Guangdong Pilot: New VAT Return Forms Effective October 1

Effective: October 1, 2026 Source: STA Guangdong Provincial Tax Bureau Announcement No. 1 of 2026

Following the June 2026 launch of new VAT return form pilots in Hebei, Shanghai, Jiangsu, Hubei, and Shaanxi, Guangdong Province has begun its own pilot from October 1 for select VAT taxpayers.

Key Changes:

• New return forms include the “VAT and Surtax Return Business Information Form,” “Main Form,” and “Supplementary Materials”
• Tax authorities provide simplified customized return services based on the Business Information Form filled by taxpayers
• Pilot taxpayers in their first filing period should carry forward previous period-end balances to the corresponding fields in the new forms

Practical Recommendations:

1. Pilot taxpayers use new forms as arranged by their local tax authority; non-pilot taxpayers continue using old forms
2. The new form adds the “Business Information Form” as a “master switch” — the system generates corresponding sections only after tags are selected
3. The main form adds a “online transaction sales amount” field for comparing platform data with filed data
4. Enterprises engaged in e-commerce, livestreaming, food delivery, and other online businesses should keep separate accounts for online and offline transactions, maintaining consistent standards

1.5 From November 1: New “Dual Tax” Withholding Rules for Natural Persons Take Effect

Effective: November 1, 2026 Source: Ministry of Finance & STA Announcement No. 28 of 2026

The “Measures for Administering Withholding and Remittance of VAT by Domestic Entities on Behalf of Natural Persons” takes effect on November 1, 2026.

Key Changes:

Previously, when enterprises purchased services from natural persons, they only needed to fulfill IIT withholding obligations. Under the new rules, for seven designated service categories, the paying domestic entity now has a statutory obligation to withhold and remit VAT and surcharges alongside IIT withholding.

Seven Categories of Services Requiring VAT Withholding:

Withholding Rules:

• Withholding agent: The domestic entity paying the consideration
• Formula: VAT to withhold = Sales amount × Applicable collection rate
• Filing deadline: Within 15 days from the 1st of the month following the taxable transaction

Transitional Arrangements:

• January 1 – October 31, 2026: Natural persons still self-declare and self-pay for qualifying transactions
• From November 1: Changed to payer withholding

Practical Recommendations:

1. The company only needs to withhold when per-transaction (daily) sales reach the per-transaction threshold (raised to 1,000 yuan/transaction from 2026)
2. When the company withholds VAT, surcharges are withheld simultaneously
3. After the company withholds, the natural person does not need to pay again when applying for a proxy-issued invoice
4. If VAT preferential policies apply (e.g., small-scale taxpayer exemptions), proactively inform the withholding agent and provide supporting documents

1.6 R&D Super Deduction: Don’t Miss the October Prepayment Window

Date: October 2026 filing period Source: STA & Ministry of Finance Announcement No. 11 of 2023

When enterprises file their Q3 prepayment (quarterly) or September (monthly) corporate income tax in October, those that can accurately accumulate and account for R&D expenses may independently choose to enjoy the super deduction for R&D expenses incurred in the first three quarters of the year.

Super Deduction Rates:

Processing Method:

• “Genuinely incurred, self-determined, enjoyed upon filing, relevant materials retained for future reference”
• No prior approval required
• Project documents, R&D personnel expense allocation records, R&D expenditure supplementary ledgers, etc. must be retained

Practical Recommendations:

1. If not claimed during October prepayment, can be claimed during annual settlement
2. R&D expenses incurred in Q4 cannot enjoy super deduction during prepayment; should be handled during annual settlement
3. Industry negative list: tobacco manufacturing, accommodation and catering, wholesale and retail, real estate, leasing and business services, entertainment, etc. are not eligible
4. Loss-making enterprises can also benefit: by increasing current-period losses and carrying forward to future years for deferred tax benefits

Cash Flow Calculation Example:

A manufacturing enterprise’s expensed R&D expenses for the first three quarters total 4 million yuan. If the super deduction is claimed during October prepayment, an additional 4 million yuan can be deducted. At the 25% statutory rate, current prepayment tax decreases by approximately 1 million yuan.

1.7 National Unified Tax Administrative Penalty Discretion Standards Released

Effective: November 1, 2026 Source: STA Announcement No. 20 of 2026

The STA released the “National Tax Administrative Penalty Discretion Standards (2026 Edition),” reworking the standards for 66 items in 9 categories of tax administrative penalties, along with a “minor violation, no penalty” list.

Key Changes:

• The same violation will no longer attract different penalties in different regions
• Tax enforcement certainty for cross-regional operations improves
• “First violation, no penalty” officially becomes the norm: first-time minor violations such as late zero-filing, failure to submit materials on time, and small issues with no tax loss may be exempted from penalties if conditions are met

Practical Recommendations:

1. Enterprises should review the “minor violation, no penalty” list to understand which violations can be exempted
2. For cross-regional enterprises, tax enforcement standards will be more uniform
3. Although penalty standards are unified, compliance requirements are not lowered — strict adherence to tax laws and regulations remains essential

1.8 Before November 1: Refined Oil Must Achieve “Invoice Upon Transaction”

Deadline: Before November 1, 2026 Source: STA Announcement No. 11 of 2026

All refined oil retail stations nationwide should achieve “invoice upon transaction” by November 1, 2026 — that is, a fully digital invoice issued through the tax authority’s Leqi platform as soon as the sale is done.

Practical Recommendations:

1. Gas stations should choose either the Leqi self-use method (self-modify systems to connect) or the Leqi joint-use method (connect via third-party platform) based on their IT capabilities
2. October is the final window for system modification and joint debugging; refined oil retail enterprises should complete Leqi platform connection testing during the October filing period
3. Ensure full-process integration of transaction data, payment information, and invoice issuance
4. Those failing to achieve full implementation within the deadline will be ordered to rectify by tax authorities and handled per the “Tax Collection and Administration Law” and “Invoice Management Measures”

1.9 Export Tax Refund Policy Adjustment

Effective: April 1, 2027 Source: Ministry of Finance & STA Announcement

The policy specifies that from April 1, 2027:

• VAT export refund rate for new energy vehicles reduced from 13% to 9%
• Export tax refund for e-cigarette devices eliminated

Enterprise Impact:

1. New energy vehicle manufacturers’ export costs will rise, pushing companies to accelerate overseas localization and improve product premium pricing
2. E-cigarette device exporters should plan ahead, conduct cost calculations, and adjust overseas business strategies promptly

1.10 Enterprise M&A Tax Incentive Guide Updated

Date: October 30, 2026 Source: Ministry of Finance & STA

The two departments updated and released the “Guide to Major Tax Incentive Policies for Enterprise Mergers and Reorganizations.” Compared with the July 2024 version, the new guide folds in two years of policy changes across CIT, VAT, stamp duty and other taxes.

Key Updates:

Corporate Income Tax:

• A new targeted policy for integrated circuit and machine tool enterprises on “non-monetary asset exchanges”: From January 1, 2026 to December 31, 2028, income confirmed from non-monetary asset exchanges by these enterprises can be recognized evenly over up to 5 years
• Enterprise mergers and divisions add “partial consensus” tax treatment rules

VAT:

• Clarifies four conditions for asset reorganization not being subject to VAT: the target must be a relatively independently operable business; assets must be transferred together with associated creditors’ rights, liabilities, and employees as a package; there must be a reasonable commercial purpose; if the transferor is a general taxpayer, the recipient must also be a general taxpayer

Stamp Duty:

• The exemption scope for property transfer documents is significantly expanded, covering property transfer documents arising from enterprise restructuring, mergers, divisions, bankruptcy liquidation, and public institution restructuring

II. Invoice Management Focus

2.1 Old Paper Invoices Must Be Cleared by Year-End

Deadline: December 31, 2026

All blank old paper invoices must be verified, cancelled, and voided by year-end.

Practical Recommendations:

1. Start inventory and cleanup in October; don’t leave it until the year-end rush
2. If old invoices need red flush, only digital invoices can now be issued
3. Failure to clear on time will create tax-related risks

2.2 Fully Digital Invoice Accounting and Archiving Reminders

III. Social Insurance and IIT Updates

3.1 New IIT Withholding Rules for Platform Streamers (Key Focus)

From October 1, 2026:

• Tax obligation timing: Day after earnings reach the account and become withdrawable
• Withholding method: Platform automatically withholds
• Calculation method: Cumulative withholding for continuous labor remuneration
• Tax rate: 3%–45% progressive rate

3.2 IIT Halving for Individual Businesses Continues

Extended through December 31, 2027:

• Annual taxable income up to 2 million yuan: 50% reduction in IIT
• Can be combined with other preferential policies for disabled persons, veterans, etc.

3.3 Annual One-Time Bonus Taxation

Annual one-time bonuses can choose one of two methods: separate taxation / combined with comprehensive income. Taxpayers may choose the more favorable option.

IV. November Filing Deadline Reminders

⚠️ Specific filing deadlines are subject to local tax authority announcements. From November 1, the new natural person VAT withholding rules officially take effect — enterprises should prepare for filing.

V. Industry Hot Topics This Month

5.1 Standardized Governance of Tax Incentive Policies

The Ministry of Finance released the “Report on the Implementation of China’s Fiscal Policy in the First Half of 2026,” setting out the main fiscal and tax reforms ahead:

Core Directions:

1. Steadily advance standardized governance of tax incentive policies: Drop the ones that don’t comply, keep those that serve a strategic purpose, avoid blanket enforcement
2. Fully implement comprehensive IIT collection on offshore trusts
3. Continue to strengthen closed-loop tax supervision of the platform economy

Differentiated Adjustment Logic:

• Orderly withdrawal of mature industry incentives: Abolish VAT immediate-refund policies for wind and nuclear power; adjust new energy vehicle purchase tax from full exemption to 50% reduction; cancel photovoltaic product export tax refunds, etc.
• Continue to retain livelihood and strategic incentives: IIT incentives for residents replacing housing, elderly care, childcare, domestic community services, and other livelihood-related tax incentives continue to be implemented

5.2 Platform Economy Tax Supervision Upgrades

With the rules largely in place and far more data to work with, oversight of the platform economy has become much more granular in 2026:

Supervision Model Upgrade:

• Shift from traditional post-event inspection and penalties to a full-cycle model of pre-warning, mid-control, and post-punishment
• Build intelligent risk models based on massive tax-related data, scanning in real time for income splitting, false operations, circular invoicing, concealed income, and other abnormal behaviors

Tax-Related Information Reporting System Fully Implemented:

• Reporting timeline: Platform enterprises complete basic information filing within 30 days of commencing operations, then report quarterly
• Coverage: Network freight, flexible employment, education/healthcare, culture/tourism/consulting, design/agency, performing arts/advertising, and all other service platform scenarios
• Results: As of Q1 2026, 9,692 domestic and overseas platform enterprises have completed tax-related information reporting nationwide

5.3 Nine Major Changes in Tax Collection Law Revision

The 2026 revision of the Tax Collection and Administration Law has entered legislative procedures. The draft contains 106 articles: 16 new, 4 deleted, 69 amended.

Nine Core Changes:

1. Elimination of pre-condition tax clearance for administrative reconsideration — lower threshold for rights protection
2. Piercing through to investors for recovery — deregistration does not erase obligations
3. Refined late fee rules; “tax evasion” renamed “tax escape”; new leniency clause added
4. Platforms required to report operators’ tax-related information
5. Electronic documents have equal legal effect
6. Real-time sharing of registration information
7. National unified penalty discretion standards effective November 1
8. Information sharing and risk warning
9. Penalties linked to credit

VI. Lifecycle Perspective: This Month’s Policies in Context

📌 This month’s updates belong to: Enterprise Lifecycle · Front-end (Daily Operations Stage)

October policies primarily focus on daily operations compliance:

• October major filing period extension → Front-end filing compliance
• Platform streamer IIT rules → Front-end platform economy compliance
• DESF annual review → Front-end social insurance compliance
• Natural person VAT withholding → Front-end withholding obligations
• R&D super deduction → Front-end innovation incentive
• Tax penalty discretion standards → Front-end enforcement uniformity
• Tax incentive standardization → Front-end policy cleanup

Remember: Good front-end compliance means smooth mid-stage annual settlement and worry-free back-end deregistration.

📅 Next Month Preview

The November report will focus on:

• First filing under new natural person VAT withholding rules
• Preparation for annual corporate income tax settlement
• Progress on the formal draft of the Tax Collection Law revision
• Year-end invoice clearance countdown
• 2027 tax policy outlook

🔗 Related Overview: Fiscal and Tax Management from the Enterprise Lifecycle Perspective

⚠️ Disclaimer: This content is compiled based on publicly available information and does not constitute professional tax advice. For specific operations, please refer to the latest official documents from the State Taxation Administration or consult a professional tax advisor.