Russian and Chinese tax authorities integrate digital systems

What do experts say about the technological integration of the two countries’ tax services and the Golden Tax? Could cooperation between Russia and China become the first step towards a unified BRICS tax database? Read more in the TV BRICS article

TV BRICS - 7 May 2026

Two tax systems, one digital framework
On 21 April 2026, Head of the Federal Tax Service of Russia Daniil Egorov and Commissioner of the State Taxation Administration of China Hu Jinglin signed a Memorandum of Understanding. In practice, the document launches a process of deep technological integration between the two countries. It outlines key areas of cooperation in tax administration, including the exchange of experience in digital transformation, the organisation of joint training programmes, and coordination at the international level.

Experts believe this growing cooperation could significantly impact cross-border operations and tax administration in both countries. In particular, greater transparency in financial transactions and faster data exchange between authorities are expected.

“The key change is that tax administration is gradually shifting from manual data exchange and selective requests to a more technology-driven control model. For businesses, this means cross-border operations between Russia and China will become more transparent: tax authorities will be able to compare data on foreign trade transactions more quickly, including counterparties, payments, deliveries, invoices, customs value and tax reporting,” explained Marina Utevskaya, Candidate of Economic Sciences and Director of the International School of Economics and Politics, in an interview with TV BRICS.

At the same time, experts stress that this does not involve merging all databases of Russia and China. Rather, cooperation is likely to be implemented through secure data channels, shared risk analysis methodologies and pilot projects covering specific types of information.

“In practice, this means creating a seamless digital bridge comprising several elements," noted Aleksandra Sytnik, Doctor of Economic Sciences and Professor at the Russian State Social University. Among these elements, she highlights:

• end-to-end monitoring of all export-import operations, where each transaction leaves a digital footprint in both systems. When goods are imported from China, the data in the declaration is automatically compared with export data in the Chinese system. Any discrepancies in figures or product descriptions are immediately flagged;
• automated data exchange, where systems share not just documents but entire datasets, including company registration details, financial flows under foreign trade contracts, and information on customs duties paid;
• the use of artificial intelligence to identify risks. Russia’s tax control system and Chinese platforms jointly analyse resale chains, comparing export prices in Russia with import prices in China. If an intermediary appears between a Russian manufacturer and a Chinese buyer to divert profits, the system will detect this gap.

Golden Tax strengthens transaction transparency
The strengthening of digital control is further underscored by China sharing its experience with the AI- and cloud-based Golden Tax System.

“Golden Tax integrates banking data and business operations such as registration and licensing, as well as information from social funds, customs and even electricity consumption data. When goods are cleared by Chinese customs, the system already contains information on their price, volume and manufacturer,” explained Sytnik.

This means that whenever a company in Russia files a declaration for purchases from China, Russian authorities will request and compare data from the Chinese system. Thanks to standardised product classification codes, data exchange will be almost instantaneous.

“The system allows real-time tracking of transactions, analysis of operational data and immediate identification of discrepancies between payments, invoices and actual deliveries. This will make it virtually impossible to conceal procurement volumes or understate customs value when trading with China,” said Mikhail Khachaturyan, Associate Professor of the Department of Strategic and Innovative Development at the Financial University under the Government of Russia.

If payment amounts from Russia do not match the figures in export declarations within the system, discrepancies will be flagged automatically. The platform also enables full visibility of the supply chain from manufacturer to buyer, reducing opportunities for artificial price manipulation and limiting the use of grey schemes or money laundering practices.

What will change for business?
Cross-border transaction monitoring will also be supported by Russia’s digital tax platform AIS Tax-3, a unified centralised system that aggregates data from banks, civil registries, vehicle authorities, property registers and cash register systems, effectively functioning as the “brain” of the tax service.

According to experts, continuous and rapid data exchange between Russian and Chinese authorities will bring significant changes to business operations. For companies operating transparently and accurately reflecting the economic substance of transactions, these changes are expected to be beneficial.

“For compliant businesses, digital integration is a major advantage in terms of speed. Exporters will be able to confirm zero VAT rates more quickly, as tax authorities will see confirmation of goods receipt in China in real time. Automated data entry will reduce the number of audits and requests. A transparent track record in the integrated system will also facilitate access to loans and public procurement opportunities in both countries,” Sytnik noted.

However, the increased requirements for data accuracy may also create challenges. Even minor discrepancies in documentation, payments or reporting could raise questions. Cross-border operations involving imports, exports, services, royalties, agency schemes, intra-group transactions and settlements via third countries will be particularly sensitive.

While adaptation challenges are considered manageable, companies involved in questionable practices are unlikely to evade detection. Such activities will be immediately highlighted by AI systems, along with entire chains of counterparties.

“For grey businesses, risks will increase sharply. It will become more difficult to use fictitious intermediaries, technical companies, artificial price manipulation, VAT gaps or formal document schemes. The more data tax authorities compare, the harder it becomes to conceal discrepancies between real transactions and their documentation,” emphasised Utevskaya.

Suspicious transactions may now be blocked immediately upon detection, rather than months later following audits. Experts suggest this could signal the gradual elimination of grey areas in trade, as discrepancies between export and import values become instantly visible.

Towards a unified BRICS tax information system
The idea of creating a unified tax information space within BRICS remains complex. Member states have different economic systems, tax regimes and levels of institutional development, making harmonisation challenging. The establishment of a supranational body could also raise concerns about tax sovereignty and require businesses to adapt to new rules, potentially increasing short-term costs.

At the same time, experts note that the potential benefits are substantial – from strengthening efforts against cross-border tax evasion to enhancing BRICS’ influence on global tax standards. This could ultimately reinforce trade ties, boost economic growth and improve investment attractiveness across member states.

“Success will depend on the ability of countries to overcome differences in tax systems, agree on governance and financing principles, and navigate the geopolitical environment. If implemented successfully, the project could become a major step towards deeper economic integration within BRICS and reshape the global tax landscape,” concluded Mikhail Khachaturyan.

Article prepared by Svetlana Khristoforova