2025 Work Report of Shanghai Municipal Tax Service, State Taxation Administration

　　In 2025, Shanghai Municipal Tax Service upheld the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, thoroughly implemented the guiding principles of the 20th CPC National Congress and the plenary sessions of the 20th CPC Central Committee, and the guiding principles of the Central Economic Work Conference, fully executed the guiding principles of the important speeches made by General Secretary Xi Jinping in his Shanghai inspection, and acted in earnest on the decisions and policy arrangements of the CPC Shanghai Municipal Committee, the Shanghai Municipal People's Government, and the State Taxation Administration, with the aim of fully accomplishing all tax tasks, and making a strong contribution to the high-quality economic and social development of Shanghai and the successful completion of the 14th Five-Year Plan.

　　Ⅰ. Shouldering Core Responsibilities for Stronger Economic Performance

　　Despite headwinds and difficulties, Shanghai's tax authorities took the initiative to organize tax revenue collection in accordance with laws and regulations. The annual tax revenue collected in 2025 reached RMB 1,626.62 billion, representing a 6.9% increase compared with that in 2024 and surpassing RMB 1.6 trillion for the first time. Of this total, local-level tax revenue amounted to RMB 724.82 billion, up 3.4%, successfully meeting the budgeted revenue target. Meanwhile, social security contributions totaled RMB 630.94 billion and non-tax revenue amounted to RMB 369.52 billion, laying a solid fiscal foundation for both high-quality development and public welfare.

　　The table below provides a detailed breakdown of Shanghai's tax revenue in 2025.

Shanghai Tax Revenue Statement for the Year 2025

　　Unit: RMB 100 million

　　We implemented preferential tax policies in a standardized manner. In 2025, a total of RMB 187.36 billion in tax relief and refunds was allocated to support technological innovation and the manufacturing sector, ensuring that all eligible entities fully benefited from these policy dividends. We proactively expanded the supply of tax and fee policies by means of integrating 5 measures related to taxes and fees into Shanghai's released 21 measures to reduce the burden on enterprises, assisting in creating a stable, improving economy for the city. We actively put in practice Shanghai's full-process service optimization for enterprise-friendly policies. With a focus on high-frequency matters like reducing or waiving six local taxes and two fees, we rolled out 115 policies that enterprises could benefit from without applications. We refined and upgraded our tax analysis products, harnessed the full potential of tax big data, generated actionable insights into regional economic trends and key sectors, effectively supporting evidence-based decision-making.

　　Ⅱ. Giving Full Play to Tax Functions, Proactively Supporting Major Strategic Initiatives

　　In support of the accelerated construction of Shanghai as a city with the functions of five centers, the tax authorities compiled and issued policy guidelines specifically designed to bolster the city's ambitions of becoming a global hub for finance, shipping, and trade. We also made concerted efforts to ensure their full and effective implementation. We have been at the forefront of the "blockchain-based network in shipping and trade + taxation" pilot reform. By vigorously expanding digital applications across shipping and trade scenarios, we enabled the tax authority to be the first ministerial-level node to join in the blockchain-based network in shipping and trade. We introduced a set of "10+8" service measures to expedite export tax rebate processing on an ongoing basis, giving a strong boost to the steady growth of foreign trade. We improved the environment for departure tax refunds by expanding the service network and streamlining processes and creating a citywide refund point network, comprising nine municipal refund points, 17 centralized refund points, and N single-store refund points. By 2025, the number of departure tax refund stores registered in Shanghai exceeded 1,800, up 1.4 times over the cumulative figure at the end of 2024. The city recorded an 80% year-on-year increase in both departure tax refund sales and refund amounts, underscoring Shanghai's national leadership for ten consecutive years. We held the plenary session of the Joint Conference on Tax and Fee Support and Services for the Integrated Development of the Yangtze River Delta. Together with the three neighboring provinces, we introduced 11 new tax and fee initiatives to foster more integrated and coordinated regional economic development. We extended the preferential stamp tax policy for offshore trade in the China (Shanghai) Pilot Free Trade Zone and the Lingang Special Area, while promptly reviewing pilot experiences, so as to provide a replicable and expandable "Shanghai Solution" to support both the renewal and the nationwide scaling-up of the policy. We took solid efforts to advance the pilot reform of Shanghai's water resources tax, continuously enhanced the coordination mechanism for a smooth fee-to-tax transition. Additionally, in cooperation with the city's water affairs department, we successfully established China's first administrative service trust model for the management of water abstraction rights.

　　III. Improving the Service System, Optimizing the Business Environment

　　We steadily advanced the integrated transformation of tax service halls and the 12366 hotline, introduced a list of 26 "Quick Processing for Minor Matters" services, and upgraded 24/7 tax and fee consultation services in nine languages. We also facilitated over one million interactive "query-and-service" services, significantly improving our ability to respond to taxpayer needs and resolve disputes. We rolled out 205 tax-related services on the All-in-One Online Government Services platform, handling over 28 million transactions in 2025. We implemented electronic documentation delivery of social security contributions in a phased manner, covering over 90% of all contribution-paying entities in Shanghai. We revised and updated the administrative rules on advance tax rulings, released 7 cases to the public, and offered enterprises greater clarity and certainty regarding the application of tax policies. We broadened the scope of "no-penalty for minor violations", fully rolled out reasoned law enforcement, and imposed greater coordination and standardization on tax inspections of enterprises, thereby continuously refining our tax enforcement practices. We took steps to strengthen the regulatory framework for tax-related professional services, and promoted greater compliance among professional service providers in the tax sector. We pioneered "blockchain + privacy-preserving computation" technology to carry out precision strikes against tax-related violations, with 14 tax-related violation cases being exposed. According to the 2025 World Bank's Enterprise Survey on the Business Environment, Shanghai delivered outstanding performance in the tax payment category.

　　IV. Consolidating the Foundation for Tax Collection and Administration, Continuously Improving Governance Efficiency

　　We pushed forward the "Foundation Strengthening Project" for tax collection and administration under digital transformation, and rolled out 31 Shanghai-specific initiatives, continuously improving the effectiveness of tax governance. We expanded our external data sources by establishing data exchange mechanisms with 45 departments, and enhanced the data integration foundation. Through accelerated implementation of bank account information submission, we helped the Bank of Communications achieve a key breakthrough, positioning it as the first among the five major state-owned banks to accomplish this. We took steady steps to advance the submission of tax-related information by internet platform businesses. We further expanded the application of third-party payment information, pioneered a data access channel with Alipay, and built a national model for others to follow. We took tax filing management as our starting point, introduced a "Smart Self-Check for Tax Filing" function, and strengthened pre-filing and in-process reminders as well as compliance-focused guidance by adding 17 cross-tax self-check indicators. We introduced 8 innovative facilitation measures for the quota assignment of digital electronic invoices, with precise risk mitigation and accurate invoicing demand fulfillment. This pioneering approach has now been adopted nationwide. We took proactive steps to pilot government blockchain applications across a range of scenarios, and successfully achieved real-time sharing of information on both the revenue sources and collection amounts of forest vegetation restoration fees. We took the lead in piloting the coordination of tax collection and administration tasks. A "data + rules" approach was adopted to strengthen source administration, and suspicious case alerts were streamlined and consolidated to effectively mitigate fragmented task assignments and duplicative responses.