China’s Shenzhen to launch blockchain tax system with Ping An

China tax Ping An

Last week, China’s Shenzhen Taxation Bureau and Ping An Insurance signed an agreement to develop a ‘smart tax’ model using AI, blockchain and other technologies, according to a Sina Finance report.

Shenzhen Tax Bureau and Ping An will be working together to develop a single window for management of taxation for all types of taxpayers in the Guangdong-Hong Kong-Macao Greater Bay Area.

The city of Shenzhen first issued a blockchain invoice with support from internet giant Tencent. Two months ago, Ledger Insights reported that the Shenzhen Taxation Bureau issued over 10 million blockchain invoices using this ‘Shenzhen Speed’.

The incumbent platform enables on-demand blockchain invoices without the need to apply or pay for an official physical tax invoice from the bill issuer. As an example, a tax invoice could be used for an expense claim.

Meanwhile, Shenzhen started to work with Ping An’s Smart City division on a broad range of municipal functions including issuing various licenses.

Hence it’s not a surprise that it decided to extend that relationship and will work with the Ping An Group to develop a one-stop system by leveraging fintech for all tax-related scenarios and reduce risks and fraud while improving efficiency.

Ping An’s Chairman Ma Mingzhe said that the group would provide all of its financial and technological advancements to the tax bureau for development of the ecosystem in the region.

Zhang Guojun, Director of Shenzhen Municipal Taxation Bureau, said that cross-border cooperation and openness of the tax system and fintech are essential for the development of a modern tax system. The bureau aims to create a benchmark for tax governance by developing the ‘smart tax’ model.

It is interesting to note that Ping An is participating in the project, and not the blockchain and AI firm it founded, OneConnect, which in December started trading on the New York Stock Exchange.

Meanwhile, Guangdong province recently launched a blockchain platform for SME financing, along with Ping An, ICBC, China Construction Bank and 126 other banks. OneConnect developed this Guangdong financing platform.

Image Copyright: Funtap / BigStock Photo