BeiGene Subsidiary Pays Back Taxes of RMB 446M: Golden Tax Phase IV Forces Pharma Compliance Cleanup

On June 26 after market close, BeiGene, Ltd. (short name 'BeiGene', 688235.SH) announced that its wholly-owned domestic subsidiary recently received a notice from the local competent tax authority: the company agreed to make certain adjustments to previously filed tax returns. The company has confirmed related tax matters with the authority and will pay back taxes and penalties totaling approximately RMB 446 million. This amount is about 30% of the company's 2025 net profit.

According to BeiGene's previously disclosed 2025 annual report, the company achieved revenue of RMB 38.225 billion in 2025, up 40.46% year-on-year; net profit attributable to shareholders was RMB 1.461 billion, turning from a loss of RMB 4.978 billion in 2024; non-recurring net profit was RMB 1.420 billion, also turning from a loss of RMB 5.379 billion.

BeiGene told the media that this matter is a notice from the local tax authority on related tax matters. The company communicated with the authority on technical determinations and tax-accounting treatment differences and will complete the payment. This matter does not involve administrative penalties. Based on accounting standards, the company determined that this is not a prior-period accounting error and does not require retrospective adjustment of prior financial data.

The company expects to record it in 2026 current-period profit or loss, with specific impact subject to audited financial statements. It stated that the matter is not expected to have a material adverse effect on the company's financial condition, going concern, or normal operations.

Multiple Pharma Companies Disclose Large Back Tax Payments This Year

In addition to BeiGene, several other listed pharma companies have announced back tax payments this year.

On May 20, Aier Eye Hospital (300015.SZ) announced that after a self-inspection of tax matters, it confirmed an additional tax payment of RMB 348 million and penalties of RMB 176 million, totaling RMB 524 million.

On January 1, China Medicine (600056.SH) announced that its wholly-owned subsidiaries Sanyang Pharmaceutical and Kangli Pharmaceutical received tax notices requiring them to pay back taxes and penalties totaling approximately RMB 65.2178 million, of which Sanyang paid RMB 21.4862 million in taxes and RMB 10.7429 million in penalties; Kangli paid RMB 21.2826 million in taxes and RMB 11.7061 million in penalties.

Additionally, Jiasitang (002462.SZ), Bluesail Medical (002382.SZ), and Chongqing Pharmaceutical (000950.SZ) also announced back tax payments.

Golden Tax Phase IV Strong Supervision: Historical Risks Cleaned Up and Compliance 'Mine Sweeping'

It is not limited to the pharma industry. According to incomplete statistics from Wind data, as of June 25, at least 80 listed companies had disclosed back tax or tax adjustment announcements this year, approaching the full-year total of 89 in 2025; the cumulative amount of back taxes, penalties, and fines involved exceeded RMB 6 billion.

Legal experts believe that the recent back tax payments by BeiGene, Aier, etc., are essentially a concentrated exposure of historical compliance issues under Golden Tax Phase IV's strong supervision, especially in the pharma industry with high R&D investment, diverse business models, and issues related to tax incentive applicability, tax-accounting differences, and related-party transactions. Most payments occur after the annual report: on one hand, companies proactively conduct tax self-inspections after annual settlement and audit to avoid penalties; on the other, it reflects the difference between audit focusing on financial accuracy and tax focusing on tax law application. Back taxes are usually due to policy interpretations rather than accounting fraud, representing a 'mine sweeping' step in the normalization of tax compliance in capital markets.

Lawyers further noted that the frequent occurrence of large back tax payments in industries like pharma this year, far exceeding historical amounts, is mainly due to the full implementation of Golden Tax Phase IV, which enables multi-department data penetration, combined with stricter supervision of tax incentives and the implementation of the Value-Added Tax Law. This forces companies to conduct a centralized cleanup of historical tax risks from the past five or even ten years. Listed companies may also proactively 'sweep mines' and announce after annual audit and settlement to reduce high fines and information disclosure risks. These factors collectively bring forward past issues that now surface.

Will This Round of Back Tax Only Affect 2026? Gradually Decrease but Tax Adjustments Will Persist

Regarding whether this tax payment wave is only a one-time event or will become a normal phenomenon, lawyers believe large back tax payments are not limited to 2026: the concentrated large payments in 2026 are mainly a one-time settlement of historical risks accumulated over multiple years (usually 3-5 years back). As proactive self-inspections progress, such large retrospective payments may gradually decrease in the next 1-2 years.

At the same time, routine tax adjustments will persist. Golden Tax Phase IV, as a permanent infrastructure for 'data-driven taxation', will make strict supervision of tax incentives (e.g., annual high-tech review, real-time verification of R&D super deduction) the norm. Companies may still face additional tax payments due to refined policy interpretations or related-party pricing adjustments during annual settlements, but the amounts will return to normal levels. Tax compliance will evolve from occasional 'mine sweeping' to a routine rigid operating cost.