Issued by:   Shanghai Municipal Tax Service, State Administration of Taxation

Issue No.:   Hushuibanfa [2025] No. 13

Issue Date:   October 24, 2025

Effective Date:    October 24, 2025

Links:   https://shanghai.chinatax.gov.cn/zcfw/zcfgk/zhsszc/202510/t478074.html

The Shanghai tax authority, after issuing Administrative Measures for Advance Tax Rulings (the "Measures") in December 2023, has now carried out a comprehensive revision of the Measures for the first time in two years. Here is a comparison between the latest version of the Measures and the 2023 edition, highlighting the key changes as follows: 
Scope of tax matters applicable for advance rulings: "Complex tax-related matters that have already occurred but have not yet been declared, and are more than three months away from the statutory tax filing deadline" are newly included within the scope of advance rulings, which expands the scope to cover both "future events” and “specific past events".
Eligible applicants: The application scope has been broadened to include all tax-related matters where the place of taxation is in Shanghai. Applicants are no longer limited to domestic enterprises registered in Shanghai but may also include non-resident enterprises with tax obligations in Shanghai.
Matters outside the scope for advance rulings: Two new categories have been added, which are 1) Matters that are substantially similar to issues currently being handled by administrative or judicial authorities; 2) Matters having the same characteristics as transaction matters completed by the applicant in prior years and for which a tax treatment conclusion already exists.
Applicant and accepting authority: It is clarified that the applicant must be the entity directly liable for tax payment or withholding obligations, and the accepting authority for the advance ruling shall be the competent tax authority of the applicant.
Binding effect of the ruling: A new clause states, "If the applicant has handled tax matters in accordance with the ruling opinion, and the tax authority subsequently adjusts such tax treatment for other reasons, no administrative penalty shall be imposed on the applicant." This clarifies the binding effect of the advance ruling on the tax authority.
Follow-up administration: Termination scenarios are introduced, specifying that if the applicant fails to implement the relevant commercial or transactional conduct for which the ruling was sought within 24 months from the date of issuance of the Advance Tax Ruling Opinion Letter, the tax authority may issue a Notice on Terminating (Revoking) Advance Tax Ruling to the applicant.