tax Photo: VCG

China's total tax revenue is expected to surpass 155 trillion yuan ($21.4 trillion) during the 14th Five-Year Plan period (2021-25), which will lay a solid fiscal foundation for economic growth and social development, while also making notable progress in building a more internationally aligned tax environment, the State Taxation Administration (STA) said on Monday. 

At a press briefing held by the State Council Information Office, Hu Jinglin, head of the STA, noted that tax and administrative fee income now represents approximately 80 percent of China's annual fiscal revenue.

During the same period, newly implemented tax and fee cuts are projected to reach 10.5 trillion yuan, and export tax rebates are estimated to surpass 9 trillion yuan. These moves have significantly supported the steady and innovative development of China's economy and society, according to the STA.

"Maintaining stable fiscal revenue growth while implementing large-scale tax and fee reductions reflects the virtuous cycle between China's tax reform and economic development," Hu Qimu, deputy secretary-general of Forum 50 for Digital-Real Economies Integration, told the Global Times on Monday. 

This approach has effectively stimulated market vitality, while providing solid financial support for social welfare and major national strategies, the expert said.

Hu Jinglin also noted that the number of tax-registered business entities in China surpassed 100 million as of June 2025, a net increase of 30 million compared with that of 2020. "This growth demonstrates the vitality and resilience of China's market economy," he said.

STA data also revealed that China's real economy achieved stable, high-quality growth from 2021 to 2025, with manufacturing maintaining a steady 29 percent share of total sales revenue. The sales revenue of high-tech industries expanded at a 13.9 percent annual growth pace, showcasing remarkable momentum in China's innovation-driven development, according to the STA.

The private economy has also shown steady progress. In the first half of this year, private enterprises contributed 71.7 percent of total sales revenue.

The STA head highlighted China's consistent improvements in its business and tax environment during the 14th Five-Year period, with tax authorities making continued efforts to streamline filing procedures and payment systems to boost efficiency.

According to the World Bank's 2024 survey, the time Chinese businesses spend on annual tax compliance has dropped by 78.2 percent compared with 2019, ranking China among the top globally. "This is testament to China's positive steps in building a more market-oriented, law-based, and internationally aligned tax environment," Hu Jinglin said.

"This progress confirms China's unwavering commitment to high-standard opening-up. By continuously aligning with international norms, China is creating a more stable, transparent, and predictable tax environment for global businesses," Hu Qimu said.

In addition, China's evolving individual income tax system has contributed meaningfully to advancing income fairness, improving public well-being, and fostering a stronger culture of tax compliance across society, Cai Zili, deputy head of the STA, said at the press briefing on Monday.

In 2024, more than 100 million taxpayers received refunds totaling more than 130 billion yuan, and about 7 million taxpayers voluntarily declared and paid additional taxes, official data showed. "These payments show the fairness and effectiveness of China's new individual income tax system," Cai said.