2026 Holiday Schedule
| Holiday | Dates | 2x Salary Dates* | 3x Salary Dates | Substitute Workday |
| New year | Jan. 1,2,3 | Jan. 2-3 | Jan. 1 | Jan. 4 |
| Spring festival | Feb 15-23 | Feb. 15-16, 20-23 | Feb. 17-19 | Feb. 14,28 |
| Qingming Festival | April 4-6 | April 5-6 | April 4 | / |
| Labour Day | May 1-5 | May 2-5 | May 1 | May 9 |
| Dragon Boat festival | June 19-21 | June 20-21 | June 19 | / |
| Mid-autumn | Sep. 25-27 | Sep. 26-27 | Sep. 25 | Sep. 20 |
| National day | Oct. 1-7 | Oct. 4-7 | Oct. 1-3 | Oct. 10 |
*if required to work; can be exchanged for another day off.
Revisions to EIT Prepayment
The Shanghai Development and Reform Commission recently issued the “Second Batch of Shanghai Free Trade Zone Linked Innovation Zones Construction Plan”, which aims to expand institutional innovation in the Free Trade Zone and release the benefits of institutional innovation on a larger scale.
The plan establishes eight key areas, including Hongqiao International Central Business District, Jing’an, and Changning, as well as the entire regions of five national-level economic and technological development zones, such as Minhang Economic and Technological Development Zone and Hongqiao Economic and Technological Development Zone, as the second batch of Shanghai Free Trade Zone Linked Innovation Zones.
The plan has five specific aspects:
· enhancing investment and trade facilitation,
· optimizing cross-border financial and data services,
· deepening reform of the scientific and technological innovation system & mechanism,
· improving the talent and land element support system,
· fully supporting the creation of new industrial forms in various shapes
Company Registration Cancellation update
The State Administration for Market Regulation has released the “Implementation Measures for Mandatory Cancellation of Company Registration”, which is aimed at standardizing the procedures for mandatory cancellation.
The newly amended Company Law of 2023 establishes the system for mandatory cancellation of company registration, stipulating that if a company’s business license is revoked, ordered to close, or annulled, and it has not applied for cancellation of company registration for three years, the registration authority may cancel the company registration.
The measures clarify that within three years from the date of mandatory cancellation of a company’s registration, relevant departments, creditors, and stakeholders who believe there are litigation issues or other circumstances that should not lead to mandatory cancellation of company registration may file an application for restoration of registration.
The measures officially took effect on October 10.
New Decree on Registration of Overseas Food Manufacturers
On 14 October 2025, China’s General Administration of Customs (GACC) published Decree 280 on Registration of Overseas Food Manufacturers, which will replace Decree 248. The new decree integrates some recent simplifications and will come into force on 1 June 2026. It is anticipated that it will make the registration process more straightforward for most European companies.
The guiding principle will be risk management based on the assessment and review of the food safety management systems and food safety conditions in the countries (regions) where imported food overseas producers are located.
Revisions to EIT prepayment
China’s State Administration of Taxation has revised the enterprise income tax prepayment declaration form. The new EIT declaration form requires the taxpayer to fill in details of some accounting items. These include:
· Employee salary; Both the salary payable amount and the salary paid amount need to be declared. The SAT can fully use the data to check the reasonableness of the salary cost of the company.
· Export of Goods sold amount: Details of self-export, entrusted export, and commission of export service need to be declared.
· Details of period expenses: the amounts of sales expenses, administration expenses, financial expenses, etc. need to be declared. Previously this was not a requirement.
· Details of investment income
China aims at domestic products in government procurement
On September 30, 2025, the General Office of the State Council issued a Notice on Implementing Domestic Product Standards and Related Policies in Government Procurement.
The notice provides explanations regarding domestic product standards, the scope of their application, and support policies and requirements for policy implementation. It commits the Ministry of Finance, together with relevant industry authorities, to determine the required proportion of domestically produced components in the total cost for different products, as well as requirements related to key components and critical processes for specific products within five years. The notice says that the process will be carried out in full consultation with relevant domestic and foreign enterprises, industry associations, and chambers of commerce.
In accordance with the development status of different industries, a transition period of 3–5 years will be set when issuing specific product requirements, gradually establishing a domestic product standards system and a dynamic adjustment mechanism in government procurement. The notice comes into force on 1st January 2026.
Preferential Policy for Expat Allowances & Subsidies to Continue
The Ministry of Finance and Taxation on 18 August 2023 announced that tax exemptions on benefits given to foreigners working in China have been extended until 31 December 2027. Benefits including housing rental, children’s tuition fees and language training costs are not treated as part of salary, but instead are treated as refundable expenses on provision of relevant invoices.
Exemption for IIT Declaration Extended
In a move to further reduce the burden on taxpayers, the Ministry of Finance and SAT announced that for individuals resident in China whose consolidated income from 1 January 2024 to 31 December 2027 does not exceed 120 thousand yuan per year but where supplementary tax needs to be declared and paid, or where the annual supplementary tax does not exceed 400 yuan, the individual is exempt from the comprehensive income tax declaration and payment.
Tax Policy on Annual Bonuses to Continue
China’s Ministry of Finance and State Administration of Taxation (SAT) announced on 18 August that the current tax treatment of annual lump-sum bonuses is to continue until the end of 2027.
Under this policy, an annual bonus amount is excluded from the employee’s comprehensive income for the current year, that is the income on which the applicable individual income tax rate and quick deduction are calculated. Instead the bonus amount is divided into monthly parts for the purpose of tax treatment, and subject to tax at the monthly applicable tax rate.
Tax Deductions Increase
The State Council has issued a Notice on raising the standard for special additional deductions for Individual Income Tax (IIT) in order to further reduce the tax burden on families. The adjusted deduction has been backdated to take effect from 1 January 2023.
Included is care for infants and young children under the age of 3: the deduction has been raised from 1000 RMB to 2000 RMB for each infant and toddler per month
Children’s education special additional deduction: the deduction has been raised from 1000 RMB to 2000 RMB for each child per month.
Special additional deduction standard for supporting the elderly: the deduction has been raised from 2000 RMB to 3000 RMB per month.
