This article assesses whether and how tax transparency can be incorporated into China’s sustainability reporting framework. While the 2024 stock exchange Sustainability Report Guidelines and the Basic Standard have established a reporting framework based on double materiality, tax is still not treated as a stand-alone topic and is not supported by tax-specific guidance for disclosure. The article argues that tax should be understood as a material governance issue in sustainability reporting. Using Global Reporting Initiative 207, the EU Corporate Sustainability Reporting Directive/European Sustainability Reporting Standards framework, EU public country-by-country reporting and the OECD approach as reference points, it assesses China’s current position and proposes a phased reform path.
Diheng Xu (Tue,) studied this question.