Announcement of the Ministry of Finance and the State Taxation Administration on Issuing the "Administrative Measures for Withholding Value-Added Tax by Domestic Entities on Behalf of Natural Persons" (Ministry of Finance and State Taxation Administration Announcement No. 2026 of Year 28)
Date: 2026-09-03
In accordance with the "Value-Added Tax Law of the People's Republic of China," the "Law on the Administration of Tax Collection of the People's Republic of China," the "Regulations for the Implementation of the Value-Added Tax Law of the People's Republic of China," and relevant provisions, the Ministry of Finance and the State Taxation Administration have formulated the "Administrative Measures for Domestic Entities Withholding and Paying Value-Added Tax on Behalf of Natural Persons" and hereby promulgate them.
Notice hereby.
Attachment: Measures for the Withholding and Payment of Value-Added Tax by Domestic Entities on Natural Persons.pdf
Ministry of Finance; State Taxation Administration
2026-9-3
Attachment
Administrative Measures for Withholding and Paying Value-Added Tax on Natural Persons by Domestic Entities
Article 1: For taxable transactions by resident natural persons (hereinafter referred to as "natural persons") that comply with the regulations—including R&D services, software services, design services, consulting services, radio and television program (work) production services, cultural services, and educational services (collectively referred to as "qualified taxable transactions")—the domestic entity making the payment shall act as the withholding agent and withhold and remit value-added tax in accordance with these Measures.
The specific scope of taxable transactions compliant with regulations shall be implemented in accordance with the "Announcement of the Ministry of Finance and the State Administration of Taxation on Matters Concerning the Specific Scope of Value-Added Tax Levies" (Ministry of Finance and State Administration of Taxation Announcement [Year] No. 2026, No. 9). If subsequent policies are adjusted, the adjusted policies shall apply.
The domestic entity making the payment refers to a domestic entity that is the buyer in a taxable transaction. "Payment" includes the full consideration for economic benefits received, whether in monetary or non-monetary form.
Article 2: For taxable transactions involving natural persons that comply with regulations, the withholding agent shall calculate the value-added tax to be withheld using the following formula:
Withholding VAT = Sales Amount × Applicable Levy Rate
Individuals who qualify for VAT preferential policies must inform withholding agents and provide accurate information. Withholding agents shall calculate the VAT to be withheld in accordance with relevant regulations.
Article 3: When an individual engages in a taxable transaction with a single withholding agent that meets the prescribed criteria, and the sales amount for that transaction (or day) reaches the threshold for per-transaction taxation, the withholding agent shall withhold value-added tax at the time of payment. If the individual has already paid the tax, the withholding agent is not required to withhold value-added tax.
Article 4: Withholding agents shall withhold applicable surcharges concurrently with value-added tax withholding in accordance with regulations. Article 5: The withholding period for tax remittance is one month. Withholding agents must file a withholding declaration and pay the taxes to the competent tax authority within 15 days from the first day of the month following the taxable transaction.
For taxable transactions where VAT has been withheld in accordance with these regulations, natural persons do not need to pay tax again when applying for invoice issuance. If a natural person does not apply for an invoice, the withholding agent may send an invoice reminder to the individual; upon confirmation by the individual, they can then apply for invoice issuance with the competent tax authority.
Article 6. Where a natural person engages in taxable transactions with a single withholding agent that comply with the regulations, and the sales amount for that transaction (or day) does not reach the threshold for VAT levied per transaction, qualifies for VAT exemption, or is exempt from VAT withholding under Article 3 of these Measures, the withholding agent shall file a declaration with the competent tax authority in accordance with Article 5 of these Measures.
Article 7: For taxable transactions subject to VAT withholding in accordance with these Measures, if the amount of withheld VAT changes due to sales allowances, suspensions, or returns, the withholding agent shall file an amended withholding return for the period in which the withholding occurred.
Article 8: Upon request by an individual, the withholding agent shall provide information on taxes withheld and withholding declaration records.
Article 9: Withholding agents shall calculate taxes and file withholding declarations based on the information provided by individuals. They may not alter such information without authorization.
If a withholding agent discovers that the information provided by an individual does not match the actual situation and the individual refuses to correct it, the withholding agent shall report this to the competent tax authority, which shall handle the matter promptly.
If an individual finds that the withholding agent's information on personal data, payment amounts, or tax withheld in their declaration does not match the actual situation, they have the right to request a correction. If the withholding agent refuses to correct the error, the individual shall report it to the withholding agent's competent tax authority, which must address the matter promptly.
Article 10: Withholding agents shall maintain, in accordance with regulations, books on withheld taxes and lawful vouchers for such withholding, as well as records of natural persons' identity information, taxable transaction details, settlement and payment records, and documentation demonstrating eligibility for VAT preferential policies.
Article 11: Withholding agents shall keep confidential personal information of natural persons and data regarding eligibility for VAT preferential policies.
Article 12: Withholding agents shall fulfill their withholding obligations in accordance with these Measures. If a natural person refuses, the withholding agent must promptly report the matter to the competent tax authority.
Article 13: If a withholding agent fails to withhold taxes that should have been withheld, fails to file withholding declarations as required, fails to remit or remits less than the amount of taxes withheld, or uses or impersonates another person's identity, the competent tax authority shall handle the matter in accordance with the "Law of the People's Republic of China on the Administration of Tax Collection" and other relevant laws and administrative regulations.
Article 14: This Measures shall not apply to natural persons engaged in online platform activities who conduct taxable transactions that comply with relevant regulations through such platforms, provided that the platform enterprise handles value-added tax (VAT) filing on their behalf in accordance with applicable rules for platform-based proxy declaration.
Article 15: This measure shall take effect on 2026/11/1. For taxable transactions by natural persons that occurred between 2026/1/1 and 10/31, natural persons shall file tax returns and pay taxes in accordance with Article 44 of the Implementation Regulations of the Value-Added Tax Law of the People's Republic of China.