Imported general cosmetics, such as beauty products, will no longer have to be tested on animals before being marketed in China. Unsplash
Imported general cosmetics, such as beauty products, will no longer have to be tested on animals before being marketed in China. Unsplash
Imported general cosmetics, such as beauty products, will no longer have to be tested on animals before being marketed in China. Unsplash
Imported general cosmetics, such as beauty products, will no longer have to be tested on animals before being marketed in China. Unsplash

China will no longer require animal testing on imported cosmetics


Evelyn Lau
  • English
  • Arabic

Cruelty-free brands that have been missing from China could soon become available in the country after it announced it will no longer require animal testing on imported cosmetics that fall into a "general" category, starting from May 1.

The news was announced in a notice on the National Medical Products Administration website, which regulates the region's drug and medical devices industry. In the past, China was one of the few countries left in the world to require animal testing on beauty products in order for them to be marketed in the country.

The update refers to general beauty products only and will not apply to any products that make active claims, such as "anti-acne" or "anti-ageing".

According to Business of Fashion, brands must provide quality certifications from their country of origin and must not target children or infants. They must also not contain any raw materials  that aren't featured on the country's approved list.

The shift will likely usher in a new wave of cruelty-free brands to the country, which boasts the second largest beauty market in the world.

In recent years, China had been taking steps towards eliminating the need for animal testing. In 2017, China's Food and Drug Administration along with the Institute for In Vitro Sciences, a non-profit research and testing lab dedicated to the development of animal-free testing methods, signed an agreement looking to make animal testing for cosmetics obsolete.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

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6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The biog

Name: Abeer Al Shahi

Emirate: Sharjah – Khor Fakkan

Education: Master’s degree in special education, preparing for a PhD in philosophy.

Favourite activities: Bungee jumping

Favourite quote: “My people and I will not settle for anything less than first place” – Sheikh Mohammed bin Rashid.

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