Supplementary Assessment, Review and Amendment for Taxation Credit in China
There are 5 grades of taxation credit for enterprises in China: A, B, M, C, D. Taxpayers of A grade can enjoy the incentive measures rendered by tax authorities, such as easier procurement of invoices(general VAT taxpayers are allowed to apply for the amount of special VAT invoices for 3 months at once), no restrictions on ordinary VAT invoices purchase(taxpayers are allowed to purchase ordinary VAT invoices as required), green channels for priorities( tax authorities shall provide green channels or arrange special personnel for taxpayers of A grade for 3 consecutive years to help on tax-related issues), more simple tax rebate procedures(tax authorities shall simplify the tax rebate procedures for export tax refund and tax refund for comprehensive utilization of natural resources), multi-conveniences of joint incentives(the State Taxation administration of China shall sign Memorandum of Cooperation with People’s Bank of China, Ministry of Finance, State-owned Assets Supervision and Administration Commission, State Administration for Industry and Commerce, China Banking Regulatory Commission, who will give joint awards to taxpayers of A grade on project approval and administration, financial funds use, industrial and commercial administration and financing facilitation). Enterprises can refer to the following circumstances to apply for supplementary assessment, review and amendment for taxation credit if they are willing to improve the taxation credit level of themselves.
1. Applicable situations for supplementary assessment of taxation credit
(1)
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Taxpayers suspected of illegal practice in taxation that have been put on record & investigated and the case has been closed;
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(2)
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Taxpayer’s illegal act has been found out by audit and financial department, tax authorities have handled and closed the case in accordance with tax law;
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(3)
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Taxpayer’s application for administrative review or administrative procedure has been closed;
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(4)
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Taxpayers have queries about the reasons for not proceeding taxation credit evaluation;
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2. Applicable situations for review of taxation credit
(1)
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Taxpayers have doubts about the calculation for score of taxation credit evaluation;
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(2)
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Taxpayers of D grade have doubts about the direct assessment;
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(3)
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Taxpayers have doubts about the deducted points of evaluation index for tax-related declaration information;
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(4)
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Taxpayers have doubts about the deducted points of evaluation index for tax payment information;
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(5)
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Taxpayers have doubts about the deducted points of evaluation index for invoice and tax control equipment information;
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(6)
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Taxpayers have doubts about the deducted points of evaluation index for registration and accounting voucher information?BR> |
(7)
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Taxpayers have doubts about the deducted points of evaluation index for taxation appraisal, taxation audit, anti-tax avoidance investigation information;
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(8)
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Taxpayers have doubts about the deducted points of evaluation index for taxation inspection information;
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(9)
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Taxpayers have doubts about the deducted points of evaluation index for external appraisal information.
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3. Applicable situations for amendment of taxation credit
(1)
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Taxpayers fail to proceed tax declaration, tax payment or fail to put on data on record within the statutory period but have these issues settled later;
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(2)
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Taxpayers fail to pay taxes or make full payment of taxes, overdue fine or penalties according to conclusions of tax authorities without constituting a crime, whose taxation credit were assessed as D grade directly;
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(3)
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Taxpayers have performed corresponding legal obligations and have been removed from Abnormal Taxpayer by tax authorities according to tax law.
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KAIZEN Group is equipped with experienced and highly qualified professional consultants and is therefore well positioned to provide professional advices and services in respect of the formation and registration of company, application for various business licences and permits, company compliance, tax planning, audit and accounting in China. Please call and talk to our professional consultants for details.
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