Foreword

Advancing the work concerning agriculture, rural areas, and farmers is a top priority in state governance and the cornerstone for stabilizing people's livelihoods and fortifying the foundation of economic and social development. As the core industrial vehicle for rural development, the agricultural products sector is deeply integrated into the processes of rural revitalization and agricultural modernization, occupying a pivotal strategic position in the nation's overall development. To support rural development, the state has introduced a series of targeted tax incentives for the agricultural products industry, including VAT exemptions for self-produced agricultural products and corporate income tax exemptions for primary processing projects. Concurrently, while supporting industry growth, the state continues to strengthen tax oversight. On one hand, eight government departments are coordinating efforts to intensify crackdowns on tax-related crimes within the agricultural products sector. On the other hand, tax authorities are deeply implementing the “Foundation Strengthening Project” for tax collection and administration, focusing on advancing digital upgrades and intelligent transformations in tax administration to achieve comprehensive, meticulous oversight of the agricultural products industry. Furthermore, due to industry-wide challenges such as ambiguous definitions of agricultural tax concepts and limitations in input tax credit policies, the sector faces persistently high tax risks. Tax disputes remain commonplace, and criminal cases involving fraudulent agricultural invoicing occur frequently. Against this backdrop, proactively establishing and continuously refining tax compliance systems has become essential for market entities in the agricultural sector to achieve stable operations and drive high-quality, sustainable development.

Drawing upon extensive practical experience and in-depth industry observation within the agricultural products sector, the Huashui team has compiled the Agricultural Products Industry Tax Compliance Report (2026). This report examines the tax regulatory environment for agricultural products, focuses on typical tax-related cases within the industry in 2025, and proposes strategies for mitigating tax risks along with practical implementation recommendations. It aims to provide valuable insights and professional guidance for building tax compliance systems and achieving high-quality development within the agricultural products industry.