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China Seeks Public Input on Draft Local Surcharge Tax Law

Foreign founders in China should note the Ministry of Finance and State Taxation Administration's draft Local Surcharge Tax Law, open for public comment until September 27, 2026. This article outlines the consultation process and key details for those operating or registering a company in China.

China Solicits Public Comments on Draft Local Surcharge Tax Law

Foreign founders with companies in China, or those planning to register one, should be aware that China's Ministry of Finance (MOF) and State Taxation Administration (STA) have jointly released a draft of the Local Surcharge Tax Law of the People's Republic of China for public consultation. The draft was formulated to implement directives from the Third Plenary Session of the 20th Central Committee of the Communist Party of China. The consultation period is open until September 27, 2026.

Background and Purpose

The draft law is part of China's ongoing efforts to improve its tax system. According to the announcement, the MOF and STA conducted research and gathered opinions and suggestions before drafting the law. The public comment period allows individuals and businesses to provide feedback on the proposed legislation. For foreign founders, understanding the local surcharge tax is important as it may affect the overall tax burden of their operations in China.

How to Submit Comments

The government has provided two main channels for submitting feedback:

• Online: Comments can be submitted through the MOF website (http://www.mof.gov.cn) via the Fiscal Regulations Management System (http://fgk.mof.gov.cn). Alternatively, comments can be submitted through the STA website (https://www.chinatax.gov.cn) by navigating to the "Interaction & Communication – Opinion Collection" section on the homepage.
• By mail: Written comments can be sent to the Tax Policy Department of the MOF at No. 3, South Sanxiang, Sanlihe, Xicheng District, Beijing (Postal Code: 100820), or to the Property and Behavior Tax Department of the STA at No. 5, Yangfangdian West Road, Haidian District, Beijing (Postal Code: 100038). Please mark the envelope with "Comments on the Local Surcharge Tax Law of the People's Republic of China."

The deadline for submission is September 27, 2026. The announcement was made on August 28, 2026, by the MOF and STA.

What This Means for Foreign Founders

Foreign founders operating in China should monitor the development of this draft law as it may impact the tax obligations of their companies. The local surcharge tax is typically levied on certain taxes, and its codification into law could bring changes to rates or administration. While the draft text is not included in this summary, the consultation process itself is a key opportunity for businesses to voice concerns or seek clarifications.

For those in the process of registering a company or already operating, staying informed about tax law changes is essential for compliance and financial planning. The MOF and STA are the primary authorities for tax policy and administration in China. Their joint issuance of this draft underscores the importance of the local surcharge tax within the broader tax framework.

Foreign founders are encouraged to review the full draft (available as an attachment on the government websites) and consider submitting comments if they have specific insights or concerns. The government's willingness to solicit public input reflects a transparent approach to law-making, which can benefit foreign investors seeking predictability in China's tax environment.

Key Dates and Contacts

• Deadline for comments: September 27, 2026
• Announcement date: August 28, 2026
• MOF address: No. 3, South Sanxiang, Sanlihe, Xicheng District, Beijing 100820
• STA address: No. 5, Yangfangdian West Road, Haidian District, Beijing 100038
• Websites: http://www.mof.gov.cn; http://fgk.mof.gov.cn; https://www.chinatax.gov.cn

Foreign founders should also note that the STA website provides links to provincial tax bureaus and other related resources, which can be useful for localized tax guidance.

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: For assistance with company registration and ongoing operations in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.