Detailed Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection
Detailed 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 of PRC No.362 2002-09-07
)
Degree of the State Council of the People's Republic of China
The Detailed Rules for the Implementation of the Law of the
People's Republic of China on the Administration of Tax Collection
are hereby promulgated and are effective as from October 15,
2002.
Chapter I General Provisions
Article 1 These Detailed 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 Taxation conducted by tax authorities in accordance
with law shall observe the Law on the Administration of Tax
Collection and these Detailed Rules. Only if there is no provision
in the Law on the Administration of Tax Collection and these
Detailed Rules, shall taxation follow the provisions of other
laws, tax administrative rules or regulations.
Article 3 Decisions made by any department, unit or individual
that go against the tax laws, administrative rules or regulations
shall be null and void. Relevant tax authorities shall not
implement these decisions and shall report to the tax authorities
at a higher level. Taxpayers shall fulfill their obligation
of tax payment in accordance with the provisions of tax laws,
administrative rules and regulations. Contracts, agreements
and other documents signed by them that contradicting tax
laws, administrative rules or regulations shall be null and
void.
Article 4 The State Administration of Taxation is responsible,
in the construction of information system for national tax
affairs, for making the general plan, technical standard,
technical planning and the implementing method, according
to which tax authorities at all levels shall work effectively
and specifically in the construction of information system
in their respective areas. The local people's governments
at all levels shall positively support the construction of
information system in taxation and organize the departments
concerned to share the relevant information with tax authorities.
Article 5 Matters to be kept confidential for taxpayers and
tax withholding agents as mentioned in Article 8 of the Law
on the Administration of Tax Collection refer to the business
secret and privacy of taxpayers and tax withholding agents.
Illegal acts in tax affairs by taxpayers and withholding agents
do not fall within the scope of confidentiality.
Article 6 The State Administration of Taxation shall formulate
the norm of conduct and standard of service for tax officials.
Tax authorities at a higher level shall rectify any illegal
acts in tax affairs by the tax authorities at a lower level
when they find them. Tax authorities at a lower level shall
correct the illegal acts in time according to the decision
of the tax authorities at a higher level. Tax authorities
at a lower level shall report to the tax authorities at a
higher level or relevant department when they find any illegal
acts in tax affairs by the tax authorities at a higher level.
Article 7 Tax 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 method and
standard for the use of award-funds shall be jointly formulated
by the State Administration of Taxation and the Ministry of
Finance.
Article 8 When assessing the amount of tax payable, adjusting
the amount of fixed tax payment, conducting a tax inspection,
imposing a tax administrative penalty, or conducting a tax
administrative reconsideration, tax officials shall withdraw
from the case 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 interest relationship that may influence just
execution of law.
Article 9 Taxation organs established according to provisions
by the State Council and made known to the public as mentioned
in Article 14 of the Law on the Administration of Tax Collection
refer to the inspection bureaus of the tax bureaus or offices
below the provincial level. The inspection 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 inspection bureau to avoid
any overlap between them.
Chapter II Tax registration
Article 10 Local offices of the State Administration of Taxation
(SAT) 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 11 The administrative organs for industry and commerce
at every level shall periodically notify the local office
of SAT and local tax bureau at the same level on the situations
of issuance, alteration, cancellation and revocation of business
licenses. The specific method of notification shall be jointly
formulated by the State Administration of Taxation and the
State Administration for Industry and Commerce.
Article 12 Taxpayers engaged in production or business operations
shall, within 30 days after the date of obtaining the business
license, file a written application for tax registration with
the competent tax authorities in the locality where the production
or business operation is conducted or where the tax obligation
occurs. They shall factually complete the tax registration
form and submit the relevant certificate, documents and information
as required by the tax authorities. Taxpayers other than those
mentioned in the preceding paragraph, except state organs
and individuals, shall, on the presentation of the relevant
documents, go through the procedure for tax registration with
the competent tax authorities in their locality within 30
days after the date of occurrence of tax obligation. Method
of tax registration for taxpayers of individual income tax
shall be separately formulated by the State Council. The sample
of tax registration certificate shall be determined by the
State Administration of Taxation.
Article 13 Tax withholding agents shall, within 30 days after
the date of occurrence of tax withholding obligation, apply
to the 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, the tax authorities may only record
the tax withholding obligation on its tax registration certificate
and not issue a separate tax withholding registration certificate
to the agent.
Article 14 When any change occurs in the content of tax registration,
the taxpayer shall, within 30 days after the date of completing
the procedure for changing its business license with the administrative
organ 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 organ for industry and commerce or
any other department, the taxpayer shall, within 30 days after
the date of such a change, apply to the original tax registration
authorities for changing its tax registration by presenting
the relevant certificates.
Article 15 When 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 cancellation of its registration with the
administrative organ 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. However, in case of no need for registration
with the administrative organ for industry and commerce or
any other department according to relevant provisions, the
taxpayer shall, within 15 days after 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.
When any change in the taxpayer's place of residence 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
organ for industry and commerce or any other department, or
before changing the place of residence 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 place of residence or business site is transferred.
The taxpayer whose business license is revoked by the administrative
organ for industry and commerce or whose registration is cancelled
by any other department shall, within 15 days after the date
of its business license revocation or registration cancellation,
apply to the original tax registration authorities for cancellation
of its tax registration.
Article 16 Before going through the procedure for cancellation
of tax registration, the taxpayer shall settle all payable
taxes, surcharge on tax in arrears and penalties, and shall
hand over the invoices, tax registration certificate and other
tax documents to the tax authorities.
Article 17 The taxpayer engaged in production or business
operation shall, within 15 days after the date of opening
a basic deposit account or other deposit accounts, report
in writing all the account numbers to the competent tax authorities.
When any change occurs in them, a written report shall be
submitted to the competent tax authorities within 15 days
after the date of such a change.
Article 18 Taxpayers, except those who do not need to obtain
a tax registration certificate according to the provisions,
must present their 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 in case of business
operations outside of the region;
(6) Going through the procedure for termination or suspension
of business operation; or
(7) Other matters regarding taxation.
Article 19 The tax authorities adopt a system of periodic
inspection and replacement of tax registration certificate.
The taxpayer shall go with the relevant certificates to the
competent tax authorities within the prescribed time limit
for certificate inspection or replacement procedures.
Article 20 The 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 the tax authorities. In
case the tax registration certificate is lost, the taxpayer
shall report within 15 days in writing to the competent tax
authorities and make an announcement in the newspaper declaring
the lost certificate invalid.
Article 21 When a taxpayer engaged in production or business
operation intends to conduct production or business operation
activities temporarily in another county (city), it shall
present a copy of its tax registration certificate and the
certificate of tax administration for business operation outside
of the region 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 of tax collection.
The taxpayer shall go through the tax registration procedure
with the local tax authorities if the time of its production
or business operation in that county (city) exceeds 180 days
in the aggregate.
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Chapter III Administration of Accounting Books and Vouchers
Article 22 Taxpayers engaged in production or business operation
shall, within 15 days after 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 the general ledger, detailed account, journal account
and other auxiliary accounting books. The general ledger and
journal account shall be bound into a book form.
Article 23 Taxpayers engaged in a small scale production
or business operation who are truly unable to set up their
accounting books may entrust any registered accountant office
or accounting personnel approved by the tax authorities with
account establishment and book keeping. Taxpayers with real
difficulty in retaining such an office or personnel may, upon
approval by the 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 regulations of the tax authorities.
Article 24 Taxpayers engaged in production or business operation
shall, within 15 days after obtaining the tax registration
certificate, submit reports on the financial and accounting
system or method of financial and accounting settlement to
the competent tax authorities for record. Taxpayers keeping
book accounts with computers shall submit a report on the
accounting software applied to the computer system, the user's
manual and related documents, before using them, to the competent
tax authorities for record. The computerized accounting system
set up by taxpayers shall be in conformity with the relevant
provisions by the state. The system shall be able to correctly
and completely calculate the receipts or income of the taxpayer.
Article 25 Tax withholding agents shall, within 10 days after
the date of occurrence of the withholding obligation in accordance
with the provisions of the tax laws and 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 26 If taxpayers or tax withholding agents have 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. However, if the accounting system is
not sound, and the computer system can not accurately and
completely calculate the receipts and income, or the tax withheld
and paid or collected and paid, taxpayers or tax withholding
agents shall set up a general ledger and other accounting
books related to tax payment or tax withheld and paid or collected
and paid.
Article 27 Accounting books, vouchers and financial statements
shall be kept and made in the Chinese language. In minority
autonomous regions, a local minority language in common use
throughout the region may be used simultaneously. Foreign-funded
enterprises and foreign enterprises may use a foreign language
simultaneously.
Article 28 Taxpayers shall install and use the tax control
device as required by the tax authorities, and submit the
relevant data and information according to the provisions
of the tax authorities. The administrative method for popularizing
the tax control device shall be separately formulated by the
State Administration of Taxation and subjected to the State
Council for approval before implementation.
Article 29 Accounting books, accounting voucher, financial
statements, tax payment voucher, invoices, exportation voucher
and other tax-related documents should be legal, authentic
and complete. Accounting books, accounting voucher, financial
statements, tax payment voucher, invoices, exportation voucher
and other tax-related documents shall be maintained for 10
years, except if otherwise stipulated in laws or administrative
rules or regulations.
Chapter IV Tax Filing
Article 30 Tax authorities shall establish and improve a
self-assessment system for taxpayers. Upon approval of the
tax authorities, taxpayers or tax withholding agents may file
tax returns or submit statements on tax withheld and paid
or collected and paid to the 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 the tax authorities.
Article 31 Taxpayers 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 return filing. Taxpayers filing tax
returns electronically shall maintain the relevant documents
within the prescribed time limit according to the requirement
of the tax authorities, and periodically submit them in writing
to the competent tax authorities.
Article 32 Taxpayers 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 33 Tax returns by taxpayers or statements on tax
withheld and paid or collected and paid by tax withholding
agents shall mainly include the following content: 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 34 Taxpayers shall, at the time of filing tax returns,
fill in the tax returns factually and submit to the tax authorities
the following relevant documents and materials in the light
of the requirement of different situations:
(1) Financial and accounting statements and related explanatory
materials;
(2) Contracts, agreements and certificates related to tax
payment;
(3) Electronic tax filing information generated by the tax
control device;
(4) Certificate of tax administration for business operation
outside of the region and the corresponding tax payment voucher;
(5) Relevant documents for evidence issued by the public
notary either at home or abroad; and
(6) Other necessary documents or materials required by the
tax authorities.
Article 35 Tax withholding agents making statements on tax
withheld and paid or collected and paid shall complete the
statements factually, and submit to the tax authorities the
eligible vouchers for tax withheld and paid or collected and
paid and other relevant documents and materials required by
the tax authorities.
Article 36 Taxpayers paying tax periodically at a fixed amount
may file tax returns in a simpler way or/and by combining
tax payment periods.
Article 37 Taxpayers 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 the tax authorities
for an extension, which shall be handled within the time limit
approved the 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 the tax
authorities immediately after the force majeure situations
have vanished. The tax authorities shall approve the report
after ascertaining the fact.
Chapter V Tax Collection
Article 38 Tax authorities shall strengthen the administration
of tax collection and establish and improve a responsibility
system. Tax authorities shall determine the mode of tax collection
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 exports. The specific administrative method shall
be formulated by the State Administration of Taxation with
the relevant departments of the State Council.
Article 39 Tax authorities shall, pursuant to the budget
accounts and budget levels prescribed by the state, remit
in time to the state treasury all types of tax, surcharge
on tax in arrears and penalties. Tax authorities shall not
occupy, embezzle, retain, or transfer 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 40 Tax 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 41 Special difficulties mentioned in Article 31 of
the Law on the Administration of Tax Collection include one
of the following situations that the 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 SAT 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 42 Taxpayers who are unable to pay their tax within
the set time limit shall, before the expiration of that limit,
file an application for a deferral with the following documents:
the application for tax deferral, balance of currency funds
for the current period and statements of all deposit accounts
in banks, balance sheet, expenditure budget requested by the
tax authorities including salaries of employees, social insurance
premiums and so on. Tax authorities shall, within 20 days
after 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 of no approval of the deferral.
Article 43 Taxpayers eligible for tax reduction or exemption
as specified by laws or administrative rules or regulations
or approved by competent authorities according to law shall
go to the competent tax authorities for the procedure of tax
reduction or exemption. 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 the tax authorities within 15 days starting
from the day of any change to the terms for tax reduction
or exemption. Taxpayers shall fulfill tax payment liabilities
as regulated when they no longer meet the requirement for
tax reduction or exemption.
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Article 44 Tax 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
to collect small, scattered, or out-of-the-region 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 45 The tax payment voucher as mentioned in Article
34 of the Law on the Administration of Tax Collection refers
to various types of tax payment receipt, letter of tax remittance,
duty stamp, tax withholding (collection) receipts and other
voucher of tax payment. No unit or individual is allowed,
unless appointed by the tax authorities, to print any kind
of tax payment voucher. Tax payment voucher shall not be lent,
resold, altered or forged. The sample of tax payment receipt
and the relevant administrative method shall be determined
by the State Administration of Taxation.
Article 46 Tax authorities shall, upon receipt of tax revenue,
issue a tax payment voucher to the taxpayer. If the taxpayer
pays tax through banks, tax authorities may entrust the bank
to issue a tax payment voucher.
Article 47 In case any one of the circumstances listed in
Article 35 or Article 37 of the Law on the Administration
of Tax Collection applies to the taxpayer, the tax authorities
shall be entitled to the right of assessing its amount of
tax liability in any one 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) According to any other reasonable method.
In case it is not adequate to correctly assess the amount
of tax liability using one of the above-mentioned methods,
two or more methods may be adopted simultaneously.
In case the taxpayer objects to the amount of tax liability
assessed by the tax authorities in the way as prescribed in
this article, it shall provide relevant proof to the tax authorities
for recognition, upon which adjustment shall be made.
Article 48 Tax authorities are responsible for grading taxpayers'
compliance credit. The method for compliance credit grading
shall be formulated by the State Administration of Taxation.
Article 49 Any contractor or lessee with independent power
of production or business operation, independent financial
accounting, and regularly paying 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 prescribed otherwise
by laws or administrative rules or regulations. The contract
issuer or lessor shall, within 30 days after the date of issuance
of contract or leasing, report 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 50 Taxpayers 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 51 The associated enterprises as 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 its associated enterprises.
The specific method shall be formulated by the State Administration
of Taxation.
Article 52 Business 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 53 The 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
of proposal, agree upon the issues of pricing with the taxpayer
in advance and supervise over the implementation.
Article 54 Tax authorities may adjust the taxpayer's amount
of tax liability in case of 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 and
provision of right to use property are not priced or charges
are not collected or paid as they should be with 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 55 In case any one of the circumstances listed in
Article 54 of the Detailed Rules applies to the taxpayer,
the 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 56 When 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 3 years after the first tax year for
such transactions, or under special circumstances within 10
years after the first tax year for such transactions.
Article 57 Taxpayers 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 the local tax
authorities for registration.
Article 58 The taxpayer shall pay tax within 15 days after
the date when the tax authorities detain its commodities or
goods in accordance with Article 37 of the Law on the Administration
of Tax Collection. As for the detained commodities or goods
which are live and fresh, apt-decaying or easy-deactivating,
the tax authorities may cut the detaining time as prescribed
in the preceding paragraph.
Article 59 Other properties as mentioned in Article 38 and
Article 40 of the Law on the Administration of Tax Collection
include immovable and movable properties such as real estate,
cash, marketable securities and so on. Motor vehicles, gold
and silver ornaments, curio calligraphy 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 Article 38, Article 40 and
Article 42 of the Law on the Administration of Tax Collection.
Tax authorities shall not adopt tax protective measures and
compulsory enforcement measures on other household goods with
the unit price below RMB 5,000 yuan.
Article 60 Family 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 61 The guarantee as mentioned in Article 38 and Article
88 of the Law on the Administration of Tax Collection refers
to the guaranty for tax payment provided for a taxpayer by
a guarantor approved by the tax authorities, or the guaranty
provided with the taxpayer's or a third party's property which
has not been pledged at all or entirely. The tax payment guarantor
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 guarantee
qualifications as prescribed by laws or administrative rules
or regulations is not allowed to serve as a tax payment guarantor.
Article 62 The tax payment guarantor who is willing to provide
guarantee for a taxpayer shall fill in a tax payment guarantee
form stating clearly the target, scope, duration and liabilities
of guarantee and other relevant issues. A letter of guarantee
shall be deemed to be valid only after it is signed and stamped
by the taxpayer and the tax payment guarantor and approved
by the tax authorities. In case a taxpayer or a third party
provides a guarantee 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 secured for tax payment shall be valid only
after it is signed and stamped by the taxpayer or the third
party and confirmed by the tax authorities.
Article 63 When detaining or sealing up commodities, goods
or other property, the 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 64 When detaining 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, Article 38 and Article 40 of the Law on the Administration
of Tax Collection, the tax authorities shall estimate the
value with reference to the market price, ex-factory price
or evaluated price. Surcharge on tax in arrears and expenses
for detaining, sealing up, keeping, auction and selling off
of the commodities, goods or other property shall be included
when the tax authorities define the value of such commodities,
goods or other property according to the preceding paragraph.
Article 65 Tax authorities may detain, seal up or auction
the inseparable commodities, goods or other property with
a value exceeding the amount of tax payable in case that the
taxpayer, tax withholding agent or tax payment guarantor has
no other property available for mandatory enforcement, and
use the proceeds therefrom to offset the amount of tax payable,
surcharge on tax in arrears, penalty and expenses of detaining,
sealing up, keeping and auction and so on.
Article 66 In detaining or sealing up the movable or immovable
property with property right certificate in line with the
provisions of Article 37, Article 38 and Article 40 of the
Law on the Administration of Tax Collection, the tax authorities
may instruct the party involved to turn in the certificate
for safekeeping and at the same time issue a notice of assistance
to the relevant department, which shall not handle ownership
transfer formalities of the movable or immovable property
in the course of its being detained or sealed up.
Article 67 Tax authorities may instruct the person subject
to enforcement to take care of the sealed-up commodities,
goods or other property. 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, the 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 68 In case the taxpayer settles the tax payment within
the deadline set by the tax authorities after the tax protective
measures are adopted, the tax authorities shall terminate
the tax protective measures within 1 day after receiving the
tax payment or tax payment receipt from the bank.
Article 69 In case of settling tax payment with detained
or sealed-up commodities, goods or other property, the tax
authorities shall entrust the auction to auction agencies
lawfully set up. In case there is no way for entrusted auction
or it is not appropriate for auction, the commodities, goods
or other property may be delivered to local commercial enterprises
for sale or be put into the taxpayer's responsibility for
disposal within a specified time limit. In case there is no
way to entrust local commercial enterprises for sale and it
is beyond the taxpayer's ability to dispose, the tax authorities
may conduct sales upon appraisal by themselves. The detailed
method for such sales upon appraisal shall be formulated by
the State Administration of Taxation. Commodities prohibited
from free purchases or sales by the state 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 arrea s, penalty
and expenses for the detaining, sealing up, keeping, auction,
sales and so on shall be returned to the taxpayer within 3
days.
Article 70 The loss as mentioned in Article 39 and Article
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 a dereliction of duty by the tax authorities.
Article 71 Other 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, China Securities Regulatory Commission or other
authorities.
Article 72 Deposit as mentioned in the Law on the Administration
of Tax Collection includes savings deposits by investors of
solely funded enterprises, partners of partnerships and individual
business household, and funds in the shareholder's capital
account as well.
Article 73 In 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
time limit, the tax authorities shall issue a notice of tax
settlement for the person involved to pay or remit tax within
a specified period of time, not exceeding 15 days.
Article 74 In 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, the
tax authorities may notify the border control department to
prevent its departure. The specific method for preventing
departure shall be formulated by the State Administration
of Taxation jointly with the Ministry of Public Security.
Article 75 The 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 the 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 76 Tax authorities 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 broadcast,
television, newspaper, periodical or network, etc. Specific
method for such regular proclamation shall be formulated by
the State Administration of Taxation.
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Article 77 The fairly large amount of overdue tax as mentioned
in Article 49 of the Law on the Administration of Tax Collection
refers to an amount of overdue tax of more than RMB 50,000
yuan.
Article 78 The tax authorities shall refund the overpaid
tax to the taxpayer within 10 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, or for exportation or tax
incentives upon the tax prepaid according to laws or regulations.
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 the tax authorities undertake the procedure for
tax refund.
Article 79 In case the taxpayer has both refundable tax and
unpaid overdue tax, the tax authorities may use the refundable
tax and interest to offset the tax payable and refund the
remainder, if any, to the taxpayer.
Article 80 The liability of the 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 of law enforcement
by the tax authorities.
Article 81 The 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 error.
Article 82 The special circumstances as mentioned in Article
52 of the Law on the Administration of Tax Collection refer
to the cases where the accumulated amount of due tax unpaid
or underpaid, not withheld or less withheld, not collected
or less collected exceeds RMB 100,000 yuan on account of the
incorrect calculation or other errors by the taxpayer or tax
withholding agent.
Article 83 The 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 or underpays tax, or fails
to remit or remit less tax.
Article 84 In case the auditing or fiscal authorities make
any decision, in the course of their undertaking the audit
or examination according to law, on the illegal act of taxation
by the tax authorities, the tax authorities shall follow such
decisions. In case the auditing or fiscal authorities discover
any illegal tax-related act by the unit under audit or examination,
they shall issue a decision or letter of opinion for the unit
to pay tax or surcharge on tax in arrears as prescribed to
the tax authorities. The tax authorities shall, according
to the decision or letter of opinion by relevant authorities
and pursuant to 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 after
the date of receiving the decision or letter of opinion, give
a written reply concerning the impleme tation 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.
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Chapter VI Tax Inspection
Article 85 Tax authorities shall establish a scientific inspection
system, making overall plans and arrangements for tax inspections,
and imposing 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 duties of officials respectively in charge of case selection,
inspection, hearing or execution shall be clearly defined
and separated for mutual restriction in achieving a standardized
procedure for case selection and tax inspection. Specific
method for undertaking tax inspections shall be formulated
by the State Administration of Taxation.
Article 86 Tax authorities may exercise their duties as prescribed
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. The tax authorities may, if necessary and upon approval
of the commissioner of the tax bureau (sub-bureau thereof)
or office at or above 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. The tax authorities shall, however,
provide the taxpayer or withholding agent with a list of the
documents and return them sound and complete within 3 months.
In case of special circumstances, the tax authorities may,
upon approval of the commissioner of the tax bureau or office
at or above city 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 87 Tax authorities shall, when exercising their duties
as prescribed in Item 6 of Article 54 of the Law on the Administration
of Tax Collection, designate specific persons for the responsibility.
The designated persons shall carry out the duties 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 s, hall be formulated by the
State Administration of Taxation. Items to be inspected by
the tax authorities include balance of the taxpayer's deposit
account and capital flow.
Article 88 In accordance with the provisions of Article 55
of the Law on the Administration of Tax Collection, the duration
of tax protective measures adopted by the tax authorities
shall not exceed 6 months normally. In case an extension is
necessary for serious cases, it shall be reported to the State
Administration of Taxation for an approval.
Article 89 Tax authorities and tax officials shall exercise
their duties and power for tax inspection in accordance with
the provisions of the Law on the Administration of Tax Collection
and the Detailed Rules of it. 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 are entitled to the right of rejecting
inspection in case tax officials intend to conduct tax inspection
without such card and notice. In case of tax inspection to
trading markets and fairs and concentrated business households,
the tax authorities may use the unified notice of taxation
inspection. The sample and specific method of the use and
administration of the notice of tax inspection shall be formulated
by the State Administration of Taxation.
Chapter VII Legal Responsibilities
Article 90 In case the taxpayer fails to go through the procedures
of inspection or replacement of the tax registration certificate
according to provisions, the tax authorities shall order the
taxpayer to comply within a time limit, and may impose a penalty
of no more than RMB2,000 yuan or between RMB 2,000 yuan and
RMB10,000 yuan for serious cases.
Article 91 Persons involved in illegal printing, lending,
reselling, altering or forging of tax payment vouchers shall
be ordered by the tax authorities to correct accordingly and
to pay a penalty between RMB2,000 yuan and RMB10,000 yuan
or between RMB10,000 yuan and RMB50,000 yuan for serious cases.
In case a crime is formed, criminal responsibilities shall
be borne by the persons involved.
Article 92 In case banks or other financial institutions
fail to record the number of tax registration certificate
in the bank accounts of the taxpayer engaged in production
or business operations, or fail to record the bank account
numbers in the tax registration certificate of the taxpayer
engaged in production or business operations as required by
provisions of the Law on the Administration of Tax Collection,
the tax authorities shall order them to comply within a time
limit and impose a penalty between RMB2,000 yuan and RMB20,000
yuan or between RMB20,000 yuan and RMB50,000 yuan for serious
cases.
Article 93 Upon persons involved in illegal providence of
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 refund fraudulently
obtained.
Article 94 In case the taxpayer refuses to have its tax withheld
or collected by the tax withholding agent, the latter 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 95 In case the tax authorities inspect the taxpayer
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, but
are rejected by the relevant units, the tax authorities shall
order them to comply, and may impose a penalty of not more
than RMB10,000 yuan or between RMB10,000 yuan and RMB50,000
yuan for serious cases.
Article 96 The taxpayer or tax withholding agent shall be
punished according to the provisions of Article 70 of the
Law on the Administration of Tax Collection, in case any one
of the following circumstances applies to it:
(1) Providing false information, not reporting according
to facts, or refusing to provide relevant information;
(2) Rejecting or preventing the 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 97 In case tax officials share illegally amongst
themselves the detained or sealed-up commodities, goods or
other property, and the circumstance is so serious as to form
a crime, they shall bear the criminal responsibilities according
to law. In case the circumstance is not serious enough to
form a crime, administrative penalties shall be imposed upon
them according to law.
Article 98 In case the tax withholding agent violates tax
laws or administrative rules or regulations, which results
in a non-payment or underpayment of tax by the taxpayer, a
penalty between 50 percent and 3 times of the amount unpaid
or underpaid by the taxpayer shall be imposed upon the tax
withholding agent, apart from the taxpayer being ordered to
settle the tax payment.
Article 99 Tax 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 100 The 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
actions by the 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 collection, etc.
Chapter VIII Delivery of Writ
Article 101 In case of writ delivery, the tax authorities
shall deliver the writ directly to the recipient. In case
the recipient is a citizen, the writ shall be delivered to
his own reception against his signature. In case the recipient
is absent, the writ shall be delivered against signature to
the reception of a living-together adult family member of
his. In case the recipient is a legal person or other organization,
the writ shall be delivered against signature to the reception
of the legal representative of the legal person, the principal
responsible person of other organization, or the responsible
person of finance or the person specifically responsible for
reception of documents or letters of the legal person or other
organization. In case the recipient has an agent, the writ
may be delivered to the agent's reception against signature.
Article 102 There shall be a return certificate for the delivery
of taxation writ. The return certificate shall be marked with
the date of receipt and signature or signet by the recipient
or other person as specified in the Detailed Rules for receipt
against signature, upon which delivery shall be recognized.
Article 103 In case the recipient or other person as specified
in the Detailed Rules for receipt against signature refuses
to sign for receipt of the taxation writ, the deliverer shall
specify the reason for refusal and the date on the return
certificate which is then marked with the signature or signet
of the deliverer and witness, and leave the taxation writ
with the recipient, upon which delivery shall be recognized.
Article 104 In case there is difficulty in a direct delivery
of the taxation writ, the tax authorities may entrust other
relevant authorities or units with the delivery, or deliver
it by mail.
Article 105 In case the taxation writ is delivered directly
or through entrustment, the date of delivery shall be the
date when the recipient or witness signs or specifies for
reception on the return certificate. In case the writ is delivered
by mail, the date of delivery shall be the date of receipt
specified on the return ticket of the registered mail, with
the delivery being recognized thereof.
Article 106 Tax authorities may make a public notice for
delivery of the taxation writ under any one of the following
circumstances and the delivery shall be recognized after 30
days of the public notice:
(1) There are numerous recipients for the same delivery;
or
(2) The writ cannot be delivered through other means of delivery
specified in this chapter.
Article 107 The format of the taxation writ shall be determined
by the State Administration of Taxation. The taxation writ
as mentioned in the Detailed Rules includes:
(1) Letter of notification of taxation issues;
(2) Letter of notification of rectification within a prescribed
time limit;
(3) Letter of decision for tax protective measures;
(4) Letter of decision for compulsory taxation enforcement;
(5) Letter of notification of tax inspection;
(6) Letter of decision for tax treatment;
(7) Letter of decision of tax administrative punishment;
(8) Letter of decision of administrative reconsideration;
and
(9) Other taxation writ.
Chapter IX Supplementary Provisions
Article 108 The terms “more than (above)”, “less
than (not more than)”, “within …days”
and “on the expiration of …” as mentioned
in the Law on the Administration of Tax Collection and the
Detailed Rules shall all include the number itself.
Article 109 In case the last day of the prescribed time limit
as stipulated in the Law on the Administration of Tax Collection
and the Detailed Rules is a legal public holiday, the day
following the end of the holiday period shall be treated as
the last day of the time limit. In case more than 3 consecutive
days in the prescribed time limit are legal public holidays,
the prescribed time limit shall be extended accordingly.
Article 110 The commission premium 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 the tax authorities
to the withholding agent in accordance with the provisions
of laws and administrative rules or regulations.
Article 111 The method for taxpayers or tax withholding agents
to entrust tax agents with taxation matters shall be formulated
by the State Administration of Taxation.
Article 112 The collection and administration of Cultivated
Land Occupation Tax, Deed Tax, Agriculture Tax and Animal
Husbandry Tax shall be implemented in accordance with the
relevant provisions of the State Council.
Article113 These Detailed Rules shall come into force as
of October 15, 2002. The Detailed 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 at the same time.
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