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Rules for the Implementation of the Law of
the People's Republic of China on the Administration of Tax Collection
(Promulgated by Decree No. 362 of the State Council of the People's
Republic of China on September 7, 2002, and effective
as of October 15, 2002) Chapter I General Provisions Article 1
These Rules are hereby formulated in accordance with the provisions of
the Law of the People's Republic of
China on the Administration of Tax Collection (hereinafter referred to
as the Law on the Administration of Tax
Collection). Article 2 The Law on the Administration of Tax
Collection and these Rules apply to the collection of various taxes by
tax
authorities according to law. In case where there is no provision in the
Law on the Administration of Tax Collection
and these Rules, the provisions of other tax laws, tax administrative
rules or regulations shall be implemented. Article 3 Decisions made
by any department, unit or individual that contravene the tax laws, tax
administrative
rules or regulations shall be null and void. Relevant tax authorities
shall not implement these decisions and shall
report to tax authorities at a higher level.
Taxpayers shall fulfill their obligation of tax payment in accordance
with the provisions of tax laws, tax administrative
rules or regulations. Contracts, agreements and other documents signed
by taxpayers that contravene tax laws, tax
administrative rules or regulations shall be null and void. Article
4The State Administration of Taxation shall be responsible for
formulating overall plans, technical
standards, technical designs and implementing measures in the
construction of national taxation information system.
According to the overall plans, technical standards, technical designs
and implementing measures formulated by the State
Administration of Taxation, tax authorities at various levels shall work
effectively in the construction of taxation
information system in their respective regions.
The local people's governments at various levels shall give positive
support to the construction of the taxation
information system and organize the related departments to have the
relevant information shared. Article 5Information to be kept
confidential for taxpayers and tax withholding agents, as stipulated in
Article 8 of the
Law on the Administration of Tax Collection, refers to the commercial
secret and individual privacy of taxpayers and tax
withholding agents. Any violation of tax law by taxpayers and
withholding agents does not fall within the scope of
confidentiality. Article 6The State Administration of Taxation shall
formulate the norm of conduct and standard of service for tax
officials.
Tax authorities at a higher level shall promptly rectify any
violation of tax law by tax authorities at a lower level upon
discovery. Tax authorities at a lower level shall promptly
correct their violation of tax law according to the decision
of tax authorities at a higher level.
Tax authorities at a lower level shall report to tax
authorities at a higher level or relevant department upon
discovering any violation of tax law by tax authorities at a
higher level.
Article 7Tax authorities shall grant awards to offence
reporters on the basis of their contributions. Funds needed to
pay these awards shall be included in the annual budget of the
taxation department and approved separately. The specific
measures and standard for the use of award-funds shall be
formulated by the State Administration of Taxation jointly
with the Ministry of Finance.
Article 8When assessing the amount of tax payable, adjusting
the amount of fixed tax payment, conducting tax inspection,
imposing tax administrative penalties, or conducting tax
administrative reconsideration, tax officials shall recuse
themselves if they have any of the following relationships
with the taxpayer, or tax withholding agent, or its legal
representative, or the direct responsible person:
(1) spouse relationship;
(2) lineal blood relationship;
(3) collateral blood relationship within three generations;
(4) close relative by marriage; or
(5) any other interests relationship that may influence
impartial law enforcement.
Article 9Taxation organs established according to provisions
of the State Council and made known to the public, as
stipulated in Article 14 of the Law on the Administration of
Tax Collection, refer to the investigation bureaus of the tax
bureaus or offices below the provincial level. The
investigation bureaus are specifically responsible for the
investigation and handling of cases involving tax evasion,
avoidance of pursuance of tax in arrears, tax fraudulence, and
refusal to pay tax.
The State Administration of Taxation shall clearly define
the respective functions of the tax bureau or office and the
investigation bureau to avoid any overlap between them.
Chapter II Tax Registration
Article 10Local offices of the State Administration of
Taxation and local tax bureaus shall use the same code for tax
registration of the same taxpayer and share information.
The specific measures for tax registration shall be
formulated by the State Administration of Taxation.
Article 11The administrative departments for industry and
commerce at every level shall periodically notify the local
offices of the State Administration of Taxation and local tax
bureaus at the same level of the situations of issuance,
alteration, cancellation and revocation of business licenses.
The specific measures for notification shall be formulated
by the State Administration of Taxation jointly with the State
Administration for Industry and Commerce.
Article 12Taxpayers engaged in production or business
operation shall, within 30 days from the date of obtaining
their business licenses, file written applications for tax
registration with the competent tax authorities in the
localities where the production or business operation is
conducted or where the tax obligation occurs. They shall
truthfully complete the tax registration form and submit the
relevant certificate, documents and information as required by
tax authorities.
Taxpayers other than those mentioned in the preceding
paragraph, except State organs and individuals, shall, by
presenting relevant documents, go through the procedure for
tax registration with the competent tax authorities in their
localities within 30 days from the date of occurrence of tax
obligation.
Measures for tax registration of individual income tax by
taxpayers shall be separately formulated by the State Council.
The sample of tax registration certificate shall be
determined by the State Administration of Taxation.
Article 13Tax withholding agents shall, within 30 days from
the date of occurrence of tax withholding obligation, apply to
local tax authorities for tax withholding registration and
obtaining the tax withholding registration certificate. In
case a tax withholding agent already has completed a tax
registration procedure, tax authorities may only record the
tax withholding obligation on its tax registration certificate
and will not issue a separate tax withholding registration
certificate to the agent.
Article 14When any change occurs in the contents of tax
registration, the taxpayer shall, within 30 days from the date
of completing the procedure for changing its business license
with the administrative department for industry and commerce
or any other department, apply to the original tax
registration authorities for changing its tax registration by
presenting the relevant certificates.
When any change occurs in the content of tax registration
and there is no need to make any change in the registration
with the administrative department for industry and commerce
or any other department, the taxpayer shall, within 30 days
from the date of such a change, apply to the original tax
registration authorities for changing its tax registration by
presenting the relevant certificates.
Article 15Where, according to law, a taxpayer's obligation
to pay tax terminates because of dissolution, bankruptcy,
cancellation or other reasons, the taxpayer shall, before
going through the procedure for cancellation of its
registration with the administrative department for industry
and commerce or any other department, apply to the original
tax authorities for cancellation of its tax registration by
presenting the relevant certificates and documents; where
there is no need for registration with the administrative
department for industry and commerce or any other department
according to relevant provisions, the taxpayer shall, within
15 days from the date of approval by relevant department or
declaration of the termination, apply to the original tax
authorities for cancellation of its tax registration by
presenting the relevant certificates.
Where any change in the taxpayer's domicile or business site
involves the change of tax registration authorities, the
taxpayer shall, before going through the alteration or
cancellation procedure of registration with the administrative
department for industry and commerce or any other department,
or before changing the domicile or business site, apply to the
original tax registration authorities for cancellation of its
tax registration, and, within 30 days, apply for tax
registration with the tax authorities of the locality to which
its domicile or business site is transferred.
The taxpayer whose business license is revoked by the
administrative department for industry and commerce or whose
registration is cancelled by any other department shall,
within 15 days from the date of its business license
revocation or registration cancellation, apply to the original
tax registration authorities for cancellation of its tax
registration.
Article 16Before going through the procedure for
cancellation of tax registration, the taxpayer shall settle
all taxes payable, surcharge on tax in arrears and penalties,
and shall hand over the invoices, tax registration certificate
and other taxation documents to tax authorities.
Article 17The taxpayer engaged in production or business
operation shall, within 15 days from the date of opening a
basic deposit account or other deposit accounts, report in
writing all the account numbers to competent tax authorities,
or shall submit a written report to competent tax authorities
within 15 days from the date of a change, if any.
Article 18The taxpayer, except one who does not need to
obtain a tax registration certificate according to the
provisions, must present its tax registration certificate when
handling the following matters:
(1) opening bank accounts;
(2) applying for tax reduction, exemption or refund;
(3) applying for extension of tax declaration or deferral of
tax payment;
(4) purchasing of invoices;
(5) applying for a taxation certificate for business
operation outside of the locality;
(6) going through the procedure for termination or
suspension of business operation; or
(7) other matters regarding taxation.
Article 19Tax authorities shall adopt a system of periodic
inspection and replacement of tax registration certificate.
The taxpayer shall go through certificate inspection or
replacement procedures with competent tax authorities within
the prescribed time limit by presenting the relevant
certificates.
Article 20The taxpayer shall hang up the original tax
registration certificate openly in the site of production or
business operation or in the office for inspection by tax
authorities.
In case the tax registration certificate is lost, the
taxpayer shall report within 15 days in writing to competent
tax authorities and make an announcement in the newspaper
declaring the lost certificate invalid.
Article 21Where a taxpayer engaged in production or business
operation conducts production or business operation activities
temporarily in another county (city), it shall present a copy
of its tax registration certificate and the taxation
certificate for business operation outside of the locality
issued by the tax authorities in its locality to the tax
authorities of the intended county (city) for inspection and
shall accept the tax administration.
Where a taxpayer engaged in production or business operation
conducts business in a place outside of its locality, it shall
go through the tax registration procedure with local tax
authorities if the time of its production or business
operation in the same place exceeds 180 days in the aggregate.
Chapter III Administration of Accounting Books and Vouchers
Article 22Taxpayers engaged in production or business
operation shall, within 15 days from the date of receipt of
their business license or occurrence of tax obligation, set up
accounting books in accordance with the relevant provisions by
the State.
The accounting books as mentioned in the preceding paragraph
refer to general ledgers, detailed accounts, journal accounts
and other auxiliary accounting books. General ledgers and
journal accounts shall be bound into a book form.
Article 23Taxpayers who are engaged in small scale
production or business operation and truly unable to set up
their accounting books may entrust any registered accountant
office or accounting personnel approved by tax authorities
with account establishment and book keeping. Taxpayers with
real difficulty in retaining such office or personnel may,
upon approval by tax authorities above the county level, set
up a pasting book for receipt and payment vouchers, a record
book for purchase and sales of goods, or use a tax control
device, in accordance with the provisions of tax authorities.
Article 24Taxpayers engaged in production or business
operation shall, within 15 days from obtaining the tax
registration certificates, submit a report on the financial
and accounting systems or methods of financial and accounting
settlement to competent tax authorities for the record.
Taxpayers keeping book accounts with computers shall submit
a report on the accounting software applied to their computer
systems, the users' manual and related documents, before using
them, to competent tax authorities for the record.
The computerized accounting systems set up by taxpayers
shall be in conformity with the relevant provisions of the
State and shall be able to correctly and completely calculate
the receipts or income of the taxpayer.
Article 25Tax withholding agents shall, within ten days from
the date of occurrence of the withholding obligation in
accordance with the provisions of the tax laws, tax
administrative rules or regulations, set up separate
accounting books regarding the tax withheld and paid or the
tax collected and paid, pursuant to the categories of tax
withheld or collected.
Article 26If a taxpayer or tax withholding agent has a sound
accounting system and can use computers to accurately and
completely calculate the receipts and income, or the tax
withheld and paid or collected and paid, the complete written
record of accounts put out by the computer system may be
regarded as accounting books.
If the accounting system is not well-established, and the
computer system can not accurately and completely calculate
the receipts and income, or the tax withheld and paid or
collected and paid, the taxpayer or tax withholding agent
shall set up a general ledger and other accounting books
related to tax payment or tax withheld and paid or collected
and paid.
Article 27Accounting books, vouchers and financial
statements shall be made in Chinese. In national autonomous
areas, a nationality language in common use in the locality
may be used simultaneously. Foreign-funded enterprises and
foreign enterprises may use a foreign language simultaneously.
Article 28Taxpayers shall install and use tax control
devices as required by tax authorities, and submit the
relevant data and information according to the provisions of
tax authorities.
The administrative measures for promoting the extensive use
of tax control devices shall be separately formulated by the
State Administration of Taxation and subjected to the State
Council for approval before the implementation.
Article 29Accounting books, accounting vouchers, financial
statements, tax payment vouchers, invoices, exportation
vouchers and other tax-related documents should be legal,
authentic and complete.
Accounting books, accounting vouchers, financial statements,
tax payment vouchers, invoices, exportation vouchers and other
tax-related documents shall be maintained for 10 years, except
as otherwise stipulated in laws or administrative rules or
regulations.
Chapter IV Tax Filing
Article 30Tax authorities shall establish and improve a
self-assessment system for taxpayers. Upon approval of tax
authorities, taxpayers or tax withholding agents may file tax
returns or submit statements on tax withheld and paid or
collected and paid to tax authorities by mail or by means of
electronic data transmission.
Electronic data transmission refers to such electronic means
as telephone, electronic data exchange, and network
transmission approved by tax authorities.
Article 31Taxpayers filing tax returns by mail shall use the
special uniformed envelope for tax returns and keep the
receipt issued by the post office as evidence for return
filing. The date carried by the postmark for the posting day
shall be the actual date of returns filing.
Taxpayers filing tax returns electronically shall maintain
the relevant documents within the prescribed time limit
according to the requirement of tax authorities, and
periodically submit them in writing to competent tax
authorities.
Article 32Taxpayers with no due tax payment during any
taxation period shall also file tax returns according to the
relevant provisions.
Taxpayers enjoying a tax reduction or exemption shall file
tax returns in accordance with the relevant provisions during
the period of tax reduction or exemption.
Article 33Tax returns by taxpayers or statements on tax
withheld and paid or collected and paid by tax withholding
agents shall include the main contents: tax categories and
items, taxable items or items on which tax is withheld and
paid or collected and paid, base of taxation, deduction items
and standard, applicable tax rate or fixed tax payment for
each unit, items and amount for tax refund, items and amount
for tax reduction or exemption, amount of tax payment or of
tax to be withheld and paid or collected and paid, period to
which tax payment belongs, deferred tax payment, tax in
arrears and surcharge on tax in arrears, etc.
Article 34Taxpayers shall, at the time of filing tax
returns, fill in the tax returns truthfully and submit to tax
authorities the following relevant documents and materials in
the light of the requirements of different situations:
(1) financial and accounting statements and related
explanatory materials;
(2) contracts, agreements and vouchers related to tax
payment;
(3) electronic tax filing information generated by tax
control devices;
(4) taxation certificates for business operation outside of
the localities and corresponding tax payment vouchers;
(5) relevant certifying documents issued by public notaries
within or outside the Chinese territory; and
(6) other necessary documents or materials required by tax
authorities.
Article 35Tax withholding agents making statements on tax
withheld and paid or collected and paid shall complete the
statements truthfully, and submit to tax authorities the
eligible vouchers for tax withheld and paid or collected and
paid and other relevant documents and materials required by
tax authorities.
Article 36Taxpayers paying tax periodically at a fixed
amount may file tax returns in a simpler way and by combining
tax payment periods.
Article 37Taxpayers or tax withholding agents with real
difficulty in filing tax returns or submitting statements on
tax withheld and paid or collected and paid within the
prescribed time limit and requiring an extension shall, within
the prescribed time limit, apply in writing to tax authorities
for an extension, which shall be handled within the time limit
approved by tax authorities.
In case taxpayers or tax withholding agents are unable, due
to force majeure, to file tax returns or submit statements on
tax withheld and paid or collected and paid within the
prescribed time limit, an extension is available. However, a
report must be submitted to tax authorities immediately after
the force majeure has vanished. The tax authorities will grant
an approval after ascertaining the facts.
Chapter V Tax Levying
Article 38Tax authorities shall strengthen the
administration of tax levying and establish and improve a
responsibility system.
Tax authorities shall determine the mode of tax levying
pursuant to the principles of ensuring a timely and full
remittance of tax revenue to the state treasury, making it as
easy as possible for taxpayers to pay tax and reducing
taxation cost.
Tax authorities shall strengthen the administration of tax
refund for export. The specific administrative method shall be
formulated by the State Administration of Taxation with the
relevant departments of the State Council.
Article 39Tax authorities shall, pursuant to the budget
accounts and budget levels prescribed by the State, remit in
time to the state treasury all types of taxes, surcharge on
tax in arrears and penalties, and shall not occupy, embezzle,
or retain them, or remit them to any accounts other than the
state treasury or the tax revenue accounts prescribed by the
State.
Any organization or individual shall not alter the budget
accounts or budget levels of tax, surcharge on tax in arrears
and penalties that have already been remitted to the State
treasury.
Article 40Tax authorities shall, in accordance with the
principles of convenience, expeditiousness and safety,
actively popularize the use of check, bankcard and electronic
settlement for tax payment.
Article 41Special difficulties mentioned in Article 31 of
the Law on the Administration of Tax Collection include either
of the following situations that a taxpayer is confronted
with:
(1) where force majeure has caused a great loss to the
taxpayer and significantly affected its normal production or
business operation; or
(2) where the taxpayer's cash fund for the current period is
not enough to settle tax payment after deducting payment to
employees and social insurance premium.
The municipal offices of the State Administration of
Taxation and municipal local tax bureaus of the cities
separately listed in the State plan may approve the taxpayer's
application for a deferral of tax payment with reference to
the limit of power as specified in paragraph 2 of Article 31
of the Law on the Administration of Tax Collection.
Article 42Taxpayers who are unable to pay tax within the set
time limit shall, before the expiration of that limit, apply
for a deferral and submit the following documents: the written
application for tax deferral, balance of currency funds for
the current period and statements of all deposit accounts in
banks, balance sheet, expenditure budget for salaries of
employees, social insurance premiums and so on, as requested
by tax authorities.
Tax authorities shall, within 20 days from the date of
receipt of the application for tax deferral, decide whether or
not to grant approval. A surcharge shall be imposed upon the
taxpayer from the expiry date of the time limit for tax
payment in case the deferral is not approved.
Article 43Taxpayers eligible for tax reduction or exemption,
as specified by laws or administrative rules or regulations or
as approved by statutory examining and approving authorities,
shall, by presenting the relevant documents, go through the
procedures for tax reduction or exemption with the competent
tax authorities. Taxpayers shall resume tax payment from the
date following the expiry date of the tax reduction or
exemption.
Taxpayers eligible for tax reduction or exemption shall
report to tax authorities within 15 days from the date of
occurrence of any change to the terms for tax reduction or
exemption. Taxpayers shall fulfill tax payment liabilities
according to law when they no longer meet the requirements for
tax reduction or exemption; if they fail to pay the tax
according to law, tax authorities shall pursue tax payment.
Article 44Tax authorities may, in line with the principles
of being conducive to taxation control and making it as easy
as possible for taxpayers to pay tax and according to relevant
provisions of the State, entrust related units or individuals
with collection of small, scattered, or
outside-of-the-locality tax payment and shall issue to such
units or individuals a certificate for tax collection. The
entrusted units or individuals shall collect tax lawfully in
the name of the tax authorities pursuant to the requirement as
stipulated in the certificate, and taxpayers shall on no
account refuse to pay tax. In case of refusal by any taxpayer,
the entrusted unit or individual shall report without delay to
the tax authorities.
Article 45Tax payment vouchers mentioned in Article 34 of
the Law on the Administration of Tax Collection refers to
various types of tax payment receipts, letters of tax
remittance, duty stamps, tax withholding (collection) receipts
and other vouchers of tax payment.
Unless appointed by tax authorities, no unit or individual
is allowed to print any kind of tax payment voucher. Tax
payment vouchers shall not be lent, resold, altered or forged.
The sample of tax payment vouchers and the relevant
administrative measures shall be determined by the State
Administration of Taxation.
Article 46Tax authorities shall, upon receipt of tax, issue
a tax payment voucher to the taxpayer. If the taxpayer pays
tax through banks, tax authorities may entrust the bank with
the issuance of the tax payment voucher.
Article 47Where the taxpayer falls into any of the
circumstances listed in Article 35 or 37 of the Law on the
Administration of Tax Collection, tax authorities shall be
entitled to the right of assessing its amount of tax payable
in any of the following methods:
(1) referring to the tax burden of other local taxpayers
engaged in the same or similar business on a similar scale and
with a similar income;
(2) according to the method of business income or cost plus
rational expenses and profit;
(3) calculating or reckoning on the basis of raw materials,
fuels, power and others consumed; or
(4) by adopting any other reasonable method.
In case it is not adequate to correctly assess the amount of
tax payable by adopting one of the above-mentioned methods,
two or more methods may be adopted simultaneously.
In case the taxpayer objects to the amount of tax payable
assessed by tax authorities by adopting the methods as
prescribed in this Article, it shall provide relevant evidence
to tax authorities for recognition, upon which adjustment
shall be made to the amount of tax payable.
Article 48Tax authorities are responsible for grading
taxpayers' compliance credit. The method for grading
compliance credit shall be formulated by the State
Administration of Taxation.
Article 49Any contractor or lessee who is independent in
both production or business operation and financial accounting
and who regularly pays contracting fees or rental to the
contract issuer or the lessor shall pay tax on its receipts
and income from production or business operation and accept
the tax administration, except as otherwise provided by laws
or administrative rules or regulations.
The contract issuer or lessor shall, within 30 days from the
date of issuance of contract or leasing, report the
information about the contractor or lessee to the competent
tax authorities. Otherwise, the contract issuer or the lessor
shall assume the joint and several tax liabilities with the
contractor or lessee.
Article 50Taxpayers shall report to the competent tax
authorities before liquidation in case of dissolution,
cancellation or bankruptcy. The competent tax authorities
shall participate in the liquidation in case the tax payment
is not settled.
Article 51The associated enterprises mentioned in Article 36
of the Law on the Administration of Tax Collection refer to
companies, enterprises or other economic entities that have
one of the following relationships:
(1) direct or indirect ownership or control of each other in
relation to capital, business operation, purchase, sale, etc;
(2) direct or indirect ownership or control of both or all
by a third party; or
(3) other associated relationships in terms of interest.
Taxpayers have an obligation to provide the local tax
authorities with information on prices, expenditure standard
and others concerning business transactions with their
associated enterprises. The specific measures shall be
formulated by the State Administration of Taxation.
Article 52Business transactions between independent
enterprises as mentioned in Article 36 of the Law on the
Administration of Tax Collection refer to business
transactions between enterprises with no associated
relationship at fair market prices and following normal
business practice.
Article 53The taxpayer may propose to the competent tax
authorities a pricing principle and calculation method for
business transactions with its associated enterprises. The
competent tax authorities may, after examination and approval,
agree upon the items of pricing with the taxpayer in advance
and supervise over the implementation.
Article 54Tax authorities may adjust the taxpayer's amount
of tax payable in one of the following situations in business
transactions between the taxpayer and its associated
enterprises:
(1) purchases and sales are not priced according to business
transactions between independent enterprises;
(2) the interest paid to or charged by the financing
enterprise is over or below the amount acceptable for
enterprises with no associated relationships, or the interest
rate adopted is higher or lower than the normal rate for the
same type of business;
(3) charge for service is not collected or paid as it
normally occurs between independent enterprises;
(4) business transactions such as transfer of property or
provision of right to use property are not priced or charges
are not collected or paid as they should be in business
transactions between independent enterprises; or
(5) other circumstances where business transactions are not
priced in accordance with the normal practice between
independent enterprises.
Article 55In case any taxpayer falls into one of the
circumstances listed in Article 54 of these Rules, tax
authorities may adjust the taxpayer's taxable receipts or
income according to the following methods:
(1) according to the price for the same or similar business
transactions between independent enterprises;
(2) according to the level of income and profit obtainable
on the basis of the resale price to a non-associated third
party;
(3) according to the method of cost plus reasonable expenses
and profit; or
(4) according to other appropriate methods.
Article 56When payment or receipt of prices or charges in
business transactions between a taxpayer and its associated
enterprise is not made as it should be with business
transactions between independent enterprises, the tax
authorities shall make adjustment, within three years after
the first tax year for such transactions, or under special
circumstances within ten years after the first tax year for
such transactions.
Article 57Taxpayers engaged in production or business
operation without completing formalities for tax registration
as mentioned in Article 37 of the Law on the Administration of
Tax Collection include those conducting production or business
operation in another county (city) without reporting to local
tax authorities for registration.
Article 58The taxpayer shall pay tax within 15 days from the
date when the tax authorities impound its commodities or goods
in accordance with Article 37 of the Law on the Administration
of Tax Collection.
As for the impounded commodities or goods which are live and
fresh, apt-decaying or easy-deactivating, the tax authorities
may shorten the impounding time set forth in the preceding
paragraph.
Article 59Other property mentioned in Articles 38 and 40 of
the Law on the Administration of Tax Collection include
immovables and movables such as real estate, cash and
marketable securities.
Motor vehicles, gold and silver ornaments, curios
calligraphies and paintings, luxurious residential buildings
or houses other than the one necessary for living do not fall
into the scope of articles and dwelling houses necessary to
support the individual and its dependent family members as
mentioned in Articles 38, 40 and 42 of the Law on the
Administration of Tax Collection.
Tax authorities shall not adopt tax preservative measures
and compulsory enforcement measures on other household goods
with the unit price below 5,000 yuan.
Article 60Family members supported by a taxpayer as stated
in Articles 38, 40 and 42 of the Tax Administration and
Collection Law shall refer to the taxpayer's living-together
spouse, lineal relatives and other relatives without living
sources and supported by the taxpayer.
Article 61The guaranty mentioned in Articles 38 and 88 of
the Law on the Administration of Tax Collection includes the
suretyship for tax payment provided for a taxpayer by a surety
approved by tax authorities, and the guaranty provided with
the taxpayer's or a third party's property which has not been
provided or entirely provided as guaranty.
The tax payment surety refers to any natural person, legal
person or other economic entity within the Chinese territory
that is able to provide guaranty for tax payment.
Any unit or individual without guaranty qualifications
prescribed by laws or administrative rules or regulations is
not allowed to serve as a tax payment guarantor.
Article 62A tax payment guarantor who is willing to provide
guaranty for a taxpayer shall fill in a letter of guaranty for
tax payment stating clearly the target, scope, duration and
liabilities of guaranty and other relevant issues. A letter of
guaranty shall be deemed to be valid only after it is signed
and stamped by the taxpayer and the tax payment guarantor and
approved by tax authorities.
In case a taxpayer or a third party provides a guaranty for
tax payment with its property, a detailed list of property
shall be filled in, indicating the value of the property and
other relevant issues. The detailed list of property provided
as guaranty for tax payment shall be valid only after it is
signed and stamped by the taxpayer or the third party and
confirmed by tax authorities.
Article 63When impounding or sealing up commodities, goods
or other property, tax authorities shall have two or more
officials present on the site and notify the person subject to
enforcement. In case the person subject to enforcement is a
natural person, he or an adult member of his family shall be
notified to be present; in case the person subject to
enforcement is a legal person or other organization, its legal
representative or principal responsible officer shall be
notified to be present. Any refusal of presence shall not
affect the enforcement.
Article 64When impounding or sealing up commodities, goods
or other property with an equivalent value to the amount of
tax payable, in accordance with the provisions of Article 37,
38 or 40 of the Law on the Administration of Tax Collection,
tax authorities shall estimate the value with reference to the
market price, ex-factory price or evaluated price of the like
commodities.
Tax authorities, when defining the value of the commodities,
goods or other property according to the preceding paragraph,
shall have the surcharge on tax in arrears and expenses for
impounding, sealing up, keeping, auctioning and selling off
them included.
Article 65Tax authorities may impound, seal up or auction as
a whole the inseparable commodities, goods or other property
with a value exceeding the amount of tax payable in case the
taxpayer, tax withholding agent or tax payment guarantor has
no other property available for compulsory enforcement, and
use the proceeds from the auction to offset the tax, surcharge
on tax in arrears, penalties and expenses of impounding,
sealing up, keeping and auction and so on.
Article 66In impounding or sealing up the movables or
immovables with a property right certificate in line with the
provisions of Article 37, 38 or 40 of the Law on the
Administration of Tax Collection, tax authorities may order
the party involved to turn in the certificate for safekeeping
and at the same time issue a notice of assistance for
enforcement to the relevant department, which shall not handle
ownership transfer formalities of the movables or immovables
in the course of its being impounded or sealed up.
Article 67Tax authorities may instruct the person subject to
enforcement to take care of the sealed-up commodities, goods
or other property, and the safekeeping responsibility shall be
borne by the person subject to enforcement.
In case the continuous use of the sealed-up property does
not cause reduction of its value, tax authorities may allow
the person subject to enforcement to continuously use it; the
person subject to enforcement shall bear any loss to the
property resulting from its fault in the course of safekeeping
or use.
Article 68In case the taxpayer settles the tax payment
within the deadline set by tax authorities after the tax
preservative measures are adopted by tax authorities, tax
authorities shall terminate the tax preservative measures
within one day after receiving the tax payment or tax payment
receipt from the bank.
Article 69In case of settling tax payment with impounded or
sealed-up commodities, goods or other property, tax
authorities shall entrust the auction to the auction agencies
lawfully set up; in case there is no way for entrusted auction
or it is not appropriate for auction, the local commercial
enterprises may be commissioned to sell them or the taxpayer
may be ordered to dispose of them within a specified time
limit; in case there is no way to commission local commercial
enterprises for sale and it is beyond the taxpayer's ability
to dispose, tax authorities may conduct sales upon appraisal
by themselves. The specific measures for such sales upon
appraisal shall be formulated by the State Administration of
Taxation. Commodities prohibited by the State from free
purchases or sales shall be purchased by the relevant
organization at the price set by the State.
The remaining part of the income from auction or sales after
deducting the tax payable, surcharge on tax in arrears,
penalties and expenses for the impounding, sealing up,
keeping, auction, sales and so on shall be returned to the
taxpayer within three days.
Article 70The loss as mentioned in Articles 39 and 43 of the
Law on the Administration of Tax Collection refers to the
direct loss incurred to the legitimate rights and interests of
the taxpayer, tax withholding agent or tax payment guarantor
as a result of liability of tax authorities.
Article 71Other financial institutions as mentioned in the
Law on the Administration of Tax Collection refer to trust and
investment companies, credit cooperatives, post savings
offices and other financial institutions approved by the
People's Bank of China, the China Securities Regulatory
Commission or other authorities.
Article 72Deposit as mentioned in the Law on the
Administration of Tax Collection includes savings deposits by
investors of individual proprietorship enterprises, partners
of partnership enterprises and individual businesses, funds in
the shareholder's capital account, etc.
Article 73In case the taxpayer engaged in production or
business operation or the tax withholding agent fails to pay
or remit tax within the prescribed time limit, or the tax
payment guarantor fails to pay the tax guaranteed within the
prescribed time limit, tax authorities shall issue a notice of
tax settlement ordering the payment or remission of tax within
a time limit not exceeding 15 days.
Article 74In case the taxpayer or its legal representative
fails to settle the tax payment due or surcharge on tax in
arrears, or provide guaranty for tax payment as required
before leaving the territory of the People's Republic of
China, tax authorities may notify the administrative
department of exit and entry to prevent its exit. The specific
measures for preventing exit shall be formulated by the State
Administration of Taxation jointly with the Ministry of Public
Security.
Article 75The time period for imposing surcharge on tax in
arrears as prescribed in Article 32 of the Law on the
Administration of Tax Collection starts with the second day
from the expiration date for tax payment specified by laws or
administrative rules or regulations, or determined by tax
authorities pursuant to provisions of laws or administrative
rules or regulations, and ends with the day on which the
taxpayer or tax withholding agent actually pays or remits the
tax.
Article 76Tax authorities at or above the county level shall
regularly make proclamations concerning the overdue tax unpaid
by taxpayers at the site of tax collection or through media
such as radio, television, newspapers, periodicals or computer
network, etc.
Specific measures for such regular proclamation shall be
formulated by the State Administration of Taxation.
Article 77The relatively large amount of overdue tax
mentioned in Article 49 of the Law on the Administration of
Tax Collection refers to an amount of overdue tax of not less
than 50,000 yuan.
Article 78Tax authorities shall refund the overpaid tax to
the taxpayer within ten days from the date of their discovery,
or verify and refund the overpaid tax within 30 days from the
date of receiving the taxpayer's application for refund in
case of the taxpayer's discovery.
The tax refund with interest at the deposit interest rate of
the corresponding period of the bank as prescribed in Article
51 of the Law on the Administration of Tax Collection does not
include the refund at final tax settlement upon the tax
prepaid according to law, or for exportation or tax reductions
and exemptions.
Interest of the tax refund shall be calculated at the
current deposit interest rate set by the People's Bank of
China on the day when tax authorities undertake the procedure
for tax refund.
Article 79In case the taxpayer has both refundable tax and
overdue tax, tax authorities may use the refundable tax and
the interest thereon to offset the overdue tax and refund the
remainder, if any, to the taxpayer.
Article 80The liability of tax authorities as mentioned in
Article 52 of the Law on the Administration of Tax Collection
refers to the improper application of tax laws or
administrative rules or regulations or illegal activity in law
enforcement by tax authorities.
Article 81The miscalculation or other errors by the taxpayer
or tax withholding agent as mentioned in Article 52 of the Law
on the Administration of Tax Collection refers to the
unintentional misapplication of calculation formula or
apparent clerical errors.
Article 82The special circumstances mentioned in Article 52
of the Law on the Administration of Tax Collection refer to
the cases where the due tax unpaid or underpaid, not withheld
or less withheld, not collected or less collected accumulates
to an amount of not less than 100,000 yuan on account of the
miscalculation or other errors by the taxpayer or tax
withholding agent.
Article 83The time limit for making up the shortage in tax
payment or pursuing tax payment or surcharge on tax in arrears
as prescribed in Article 52 of the Law on the Administration
of Tax Collection starts from the day when the taxpayer or tax
withholding agent fails to pay the due tax or underpays tax,
or fails to remit the due tax or remits less tax.
Article 84In case the auditing or fiscal authorities make
any decision, in undertaking the audit or examination
according to law, on any violation of tax law by tax
authorities, tax authorities shall follow such decisions. In
case the auditing or fiscal authorities discover any violation
of tax law by the unit under audit or examination, they shall
issue a letter of decision or opinion instructing the unit to
pay tax or surcharge on tax in arrears that should be paid to
tax authorities. Tax authorities shall, according to the
letter of decision or opinion by relevant authorities and the
provisions of tax laws or administrative rules or regulations,
collect the tax or surcharge on tax in arrears according to
the scope of tax administration and remit it to the state
treasury according to the budget levels as prescribed by the
State.
Tax authorities shall, within 30 days from the date of
receiving the letter of decision or opinion, give a written
reply concerning the implementation to the auditing or fiscal
authorities.
The relevant authorities shall not at their own discretion
collect or remit to the state treasury, or dispose or occupy
in any other name any tax or surcharge on tax in arrears
discovered in the process of their duty execution.
Chapter VI Tax Inspection
Article 85Tax authorities shall establish a scientific
inspection system, make overall plans and arrangements for tax
inspections, and impose strict controls on the frequency of
tax inspections to taxpayers or withholding agents.
Tax authorities shall work out a reasonable guideline for
tax inspections, in which the functions and duties of
officials respectively in charge of case selection,
inspection, hearing or execution shall be clearly defined and
separated for mutual check in order to standardize the case
selection procedures and tax inspection.
Specific measures for tax inspections shall be formulated by
the State Administration of Taxation.
Article 86Tax authorities may exercise their duties and
powers set forth in Item 1 of Article 54 of the Law on the
Administration of Tax Collection at the business site of the
taxpayer or withholding agent. If necessary, tax authorities
may, upon approval of the commissioner of the tax bureau
(sub-bureau thereof) or office at or above the county level,
take back for inspection the taxpayer's or withholding agent's
accounting books, accounting vouchers, financial statements
and other relevant materials of previous accounting years. Tax
authorities shall, however, provide the taxpayer or
withholding agent with a list of the documents taken back and
return them sound and complete within three months. In case of
special circumstances, tax authorities may, upon approval of
the commissioner of the tax bureau or office at or above the
city with districts or autonomous prefecture level, take back
for inspection the taxpayer's or withholding agent's
accounting books, accounting vouchers, financial statements
and other relevant materials of the current accounting year,
but shall return them within 30 days.
Article 87Tax authorities shall, when exercising their
duties and powers set forth in Item 6 of Article 54 of the Law
on the Administration of Tax Collection, designate specific
persons for the responsibility, carry out the inspection on
the strength of the nationally unified permit for deposit
account inspection, and shall have the obligation of keeping
confidential the information about the person under
inspection.
The permit for deposit account inspection shall be
formulated by the State Administration of Taxation.
Items to be inspected by tax authorities include balance of
the taxpayer's deposit account and capital flow.
Article 88In accordance with the provisions of Article 55 of
the Law on the Administration of Tax Collection, the duration
of tax preservative measures adopted by tax authorities shall
not exceed six months normally. In case an extension is
necessary for serious cases, it shall be reported to the State
Administration of Taxation for approval.
Article 89Tax authorities and tax officials shall exercise
their duties and powers for tax inspection in accordance with
the provisions of the Law on the Administration of Tax
Collection and these Rules.
Tax officials shall present the tax inspection identity card
and notice of tax inspection when conducting tax inspections.
Taxpayers, withholding agents or other persons involved have
the right to reject inspection in case tax officials intend to
conduct tax inspection without such card and notice. In case
of tax inspection to markets and fairs and concentrated
businesses, tax authorities may use the unified notice of tax
inspection.
The State Administration of Taxation shall determine the
format of the tax inspection identity card and the notice of
tax inspection and formulate the specific measures for the use
and administration of them.
Chapter VII Legal Liabilities
Article 90Where a taxpayer fails to go through the
formalities for inspection or replacement of the tax
registration certificate according to the provisions, the tax
authorities shall order the taxpayer to make corrections
within a time limit, and may impose a penalty of not more than
2,000 yuan; where the circumstances are serious, a penalty of
not less than 2,000 yuan but not more than 10,000 yuan shall
be imposed.
Article 91Where anyone illegally prints, lends, resells,
alters or forges tax payment vouchers, the tax authorities
shall order it to make corrections and impose a penalty of not
less than 2,000 yuan but not more than 10,000 yuan, or, where
the circumstances are serious, not less than 10,000 yuan but
not more than 50,000 yuan. In case a crime is constituted,
criminal liability shall be investigated.
Article 92Where banks or other financial institutions fail
to record the number of the tax registration certificate in
the bank accounts of the taxpayer engaged in production or
business operation, or fail to record the bank account numbers
in the tax registration certificate of the taxpayer engaged in
production or business operation in accordance with the
provisions of the Law on the Administration of Tax Collection,
the tax authorities shall order them to make corrections
within a time limit and impose a penalty of not less than
2,000 yuan but not more than 20,000 yuan, or, where the
circumstances are serious, not less than 20,000 yuan but not
more than 50,000 yuan.
Article 93Where anyone illegally provides bank accounts,
invoices, certificates or other convenience to taxpayers or
tax withholding agents with a result of non-payment or
underpayment of tax or fraudulently obtaining tax refund for
exportation, the tax authorities may, apart from confiscating
the illegal income, impose a penalty of not more than one time
the amount of tax unpaid or underpaid, or of tax refund
fraudulently obtained.
Article 94Where a taxpayer refuses to have its tax withheld
or collected by the tax withholding agent, the tax withholding
agent shall report to the tax authorities, which shall be
responsible for collecting the tax payable and surcharge on
tax in arrears directly from the taxpayer. In case the
taxpayer rejects such payment, the provisions of Article 68 of
the Law on the Administration of Tax Collection shall apply.
Article 95Where tax authorities inspect taxpayers at
stations, docks, airports, postal enterprises or branches
thereof in accordance with the provisions of Item 5 of Article
54 of the Law on the Administration of Tax Collection, if such
inspection is rejected by relevant units, the tax authorities
shall order them to make corrections, and may impose a penalty
of not more than 10,000 yuan; where the circumstances are
serious, a penalty of not less than 10,000 yuan but not more
than 50,000 yuan shall be imposed.
Article 96A taxpayer or tax withholding agent shall be
punished according to the provisions of Article 70 of the Law
on the Administration of Tax Collection, where it falls into
one of the following circumstances:
(1) providing false information, not reporting according to
facts, or refusing to provide relevant information;
(2) rejecting or preventing tax authorities from taking
notes, tape-recording, video-recording, photographing or
copying the situations or materials related to the case under
investigation;
(3) transferring, concealing or destroying the relevant
information by the taxpayer or tax withholding agent during
the period of inspection; or
(4) other circumstances of not accepting tax inspection
according to law.
Article 97Where tax officials divide privately the impounded
or sealed-up commodities, goods or other property, and the
circumstances are so serious as to constitute a crime, they
shall be investigated for criminal liability according to law.
If the circumstances are not serious enough to constitute a
crime, administrative penalties shall be imposed upon them
according to law.
Article 98Where a tax withholding agent violates tax laws or
administrative rules or regulations, which results in a
non-payment or underpayment of tax by the taxpayer, the
taxpayer shall pay or make up the shortage in payment of tax
or surcharge on tax in arrears and a penalty of not less than
50 percent but not more than 3 times of the amount unpaid or
underpaid by the taxpayer shall be imposed upon the tax
withholding agent.
Article 99Tax authorities shall issue receipts when imposing
a penalty upon or confiscating the illegal income of the
taxpayer, tax withholding agent or other persons involved.
Otherwise, the taxpayer, tax withholding agent or other
persons involved shall have the right to refuse.
Article 100The dispute over tax payment as mentioned in
Article 88 of the Law on the Administration of Tax Collection
refers to the dispute arising from the taxpayer, tax
withholding agent or tax payment guarantor over such specific
administrative acts by tax authorities as determining the
subject of tax payment, target of tax collection, scope of tax
collection, tax reduction and exemption, tax refund,
applicable tax rate, base of tax assessment, stages of tax
payment, period and place of tax payment, means of tax
levying, etc.
Chapter VIII Service of Documents
Article 101Tax authorities shall serve taxation documents
directly on recipients.
Where the recipient is a citizen, the document shall be
delivered to his own reception against his signature. Where
the recipient is absent, the document shall be delivered
against signature to the reception of his adult family member
living together.
Where the recipient is a legal person or an other
organization, the document shall be delivered against
signature to the reception of the legal representative of the
legal person, the principal responsible person of the
organization, or the responsible person of finance or the
person specifically responsible for reception of documents or
letters of the legal person or the organization. In case the
recipient has an agent, the document may be delivered to the
agent's reception against signature.
Article 102There shall be a return of service for the
taxation documents served. The return of service shall bear
the date of reception and the signature or stamp by the
recipient or other persons as specified in these Rules for
reception against signature, upon which service shall be
deemed completed.
Article 103Where the recipient or any of the other persons
as specified in these Rules for reception against signature
refuses to sign for reception of the taxation document, the
person who delivers the document shall, on the return of
service, specify the reason for refusal and state the date,
affix the signature or stamp of himself and the witness to the
return of service, and leave the taxation document with the
recipient, upon which service shall be deemed completed.
Article 104Where there is difficulty in a direct service of
taxation documents, tax authorities may entrust other relevant
authorities or units with the service, or send them by mail.
Article 105Where taxation documents are served directly or
through entrustment, the date of service shall be the date
when the recipient or witness signs or specifies for reception
on the return of service. In case the documents are served by
mail, the date of service shall be the date of reception
specified on the receipt of the registered mail, with the
service being deemed completed.
Article 106Tax authorities may serve taxation documents by a
public notice under any of the following circumstances and the
service shall be deemed completed after 30 days of the public
notice:
(1) the document is to be served on numerous recipients; or
(2) the document cannot be served through other means of
service specified in this chapter.
Article 107The format of taxation documents shall be
determined by the State Administration of Taxation. The
taxation documents mentioned in these Rules include:
(1) letter of notification of taxation issues;
(2) letter of notification of rectification within a
prescribed time limit;
(3) letter of decision for tax preservative measures;
(4) letter of decision for compulsory taxation enforcement;
(5) letter of notification of tax inspection;
(6) letter of decision for tax disposition;
(7) letter of decision of tax administrative penalty;
(8) letter of decision of administrative reconsideration;
and
(9) other taxation documents.
Chapter IX Supplementary Provisions
Article 108The terms "not less than", "not more than",
"within …days" and "expires" as mentioned in the Law on the
Administration of Tax Collection and these Rules shall all
include the given figure.
Article 109In case the last day of the prescribed time limit
set forth in the Law on the Administration of Tax Collection
and these Rules is an official holiday, the day following the
end of the holiday period shall be deemed as the last day of
the time limit. In case not less than three consecutive days
in the prescribed time limit are official holidays, the
prescribed time limit shall be extended by the number of
holidays.
Article 110The commissions for withholding or entrusted
collection of tax as prescribed in Paragraph 3 of Article 30
of the Law on the Administration of Tax Collection shall be
included in the budget and paid by tax authorities to the
withholding agent in accordance with the provisions of laws
and administrative rules or regulations.
Article 111The measures for taxpayers or tax withholding
agents to entrust tax agents with taxation matters shall be
formulated by the State Administration of Taxation.
Article 112The collection and administration of Cultivated
Land Occupation Tax, Deed Tax, Agriculture Tax and Animal
Husbandry Tax shall be subject to the relevant provisions of
the State Council.
Article 113These Rules shall be effective as of October 15,
2002. The Rules for the Implementation of the Law of the
People's Republic of China on the Administration of Tax
Collection promulgated by the State Council on August 4, 1993
shall be repealed simultaneously. |
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