NOTICE ON ISSUING THE STIPULATIONS OF THE STATE ADMINISTRATION OFTAXATION ON SOME ISSUES CONCERNING IMPLEMENTATION OF THE LAW OF TAX COL-LECTION AND MANAGEMENT AND DETAILED RULES FOR ITS IMPLEMENTATION
NOTICE ON ISSUING THE STIPULATIONS OF THE STATE ADMINISTRATION OFTAXATION ON SOME ISSUES CONCERNING IMPLEMENTATION OF THE LAW OF TAX COL-LECTION AND MANAGEMENT AND DETAILED RULES FOR ITS IMPLEMENTATION
(State Administration of Taxation: 2, November 1993 Guo Shui Fa[93] No. 117)
Whole Doc.
To the tax bureaus of various provinces, autonomous regions and
municipalities and the tax bureaus of various cities with separate
planning:
The Stipulations of the State Administration of Taxation On Some
Issues Concerning Implementation of the Law of Tax Collection and
Management and Detailed Rules for Its Implementation are hereby printed
and issued to you, please put them into practice in real earnest.
Appendix: Stipulations of the State Administration of Taxation On
Some Issues Concerning Implementation of the Law of Tax Collection and
Management and Detailed Rules for Its Implementation
A duplicate is sent to: The Ministry of Finance
STIPULATIONS OF THE STATE ADMINISTRATION OF TAXATION ON SOME IS- SUES CONCERNING IMPLEMENTATION OF THE LAW OF TAX COLLECTION AND MANA- GEMENT AND DETAILED RULES FOR ITS IMPLEMENTATION
In order to ensure implementation of the Law of the People's Republic
of China for Tax Collection and Management (hereinafter referred to as Law
of Tax Collection and Management and the Detailed Rules for Implementation
of the Law of the People's Republic of China for Tax Collection and
Management, related questions are hereby stipulated as follows:
I. Tax Registration
In accordance with the stipulations of ARTICLE 5 of the Detailed
Rules, tax payers who are not engaged in production and management, apart
from temporarily gaining taxable income or having dutiable conducts as
well as only paying personal income regulatory tax and personal income
tax, and vehicle and vessel license tax, shall all, within 30 days from
the day of approval granted by the department concerned or within 30 days
from the day they become legal tax payers according to the stipulations of
laws and administrative regulations, report to, and perform the procedures
for tax registration, at tax authorities in accordance with the Law for
Tax Collection and Management and the procedures and requirements
stipulated in the Detailed Rules and shall be issued a tax registration
certificate after examination and approval by tax authorities.
While performing the procedures for tax registration, the tax payer
shall report to, and perform procedures at, the competent tax authorities
in line with the scope of jurisdiction defined by the tax authorities in
the location of his or her production and management. The tax authorities
shall handle the matter for him or her within the specified time, and
shall give a reply to those whose case does not fit the stipulations.
Tax registration certificates are classified into: Tax registration
certificate and its duplicate and registered tax registration certificate
and its duplicate. Tax payer who engages in production and management and
who is issued a business license by the administrative department for
industry and commerce shall be issued a tax registration certificate and
its duplicate, but to the branch of the tax payer which is not engaged in
independent accounting, as well as tax payer who shall perform the
procedures for tax registration in line with the stipulations of Clause 1
of this article shall be issued a registered tax registration certificate
and its duplicate.
After receiving the tax registration certificate, the tax payer shall
engage in operation by putting up and display the certificate in the
conspicuous, easily visible place of his or her production and operational
site. Tax payer who engages in operation in another place shall bring with
him or her their tax registration certificate or the duplicate of the
registered tax registration certificate.
Tax authorities shall check the already issued tax registration
certificate once a year and change it once every three years. The concrete
time for checking the certificate shall be determined in a unified way by
the tax bureaus of provinces, autonomous regions and municipalities and
the time for changing the certificate shall be stipulated in a unified way
by the State Administration of Taxation.
The category of tax registration certificate related to foreign
countries and the time for checking and changing certificates shall be
carried out temporarily in accordance with the Document Guo Shui Fa (1993)
No. 021.
II. Postponement of Declaration
The tax payer who is approved by tax authorities postponement of
declaration of tax payment, except for irresistible reasons, shall, within
the specified declaration period, pay tax in advance in accordance with
the actually paid tax amount of the previous period or with the tax amount
verified and fixed by tax authorities, and shall perform taxation
settlement within the approved extended period.
III. Deferred Tax Payment
In line with the stipulations of Clause 1 of ARTICLE 20 of the Law
for Tax Collection and Management, tax payer who cannot pay tax on
schedule due to special difficulty shall, within the specified tax paying
period, present a written application to the competent tax authorities and
can postpone paying tax only with approval from the tax bureau
(sub-bureau) at or above the county level, but the longest time for
deferred tax payment shall not exceed three months.
IV. Verifying and Fixing Tax Amount
In line with the stipulations of ARTICLE 23 of the Law for Tax
Collection and Management and ARTICLE 35 of the Detailed Rules, tax
authorities may levy taxes by adopting the method of verifying and fixing
the tax amount. Verifying and fixing tax amount means determining the
dutiable tax amount of the tax payer's current or previous tax period. But
for the tax payer who may not set up an account book in accordance with
stipulations, tax authorities may verify and fix his next period dutiable
tax amount, that is, levying tax by the method of fixed term and fixed
amount.
V. Calculation of the Value of Detained and Sealed Up Commodities, Goods or Other Properties
In accordance with the stipulations of ARTICLES 25, 26, and 27 of the
Law for Tax Collection and Management, tax authorities, while carrying out
detaining and sealing up, shall calculate the value of detained and sealed
up commodities, goods or other properties according to the following
methods:
(1) While detaining and sealing up commodities and goods, tax
authorities shall calculate their value in accordance with the lowest
market purchasing prices at the given time and place.
(2) While detaining and sealing up valuable articles such as gold,
silver and jewelry, tax authorities shall calculate their value in
accordance with the purchasing price published by the special state
institution.
(3) While detaining and sealing up immovable properties, tax
authorities shall calculate the value in accordance with the value
assessed by the local property evaluation organization.
While determining the quantity of the detained and sealed up
commodities, goods or other properties in accordance with the
above-mentioned method, tax authorities shall also include in them the
expense occurred in the course of detaining, sealing up, keeping and
auctioning.
VI. Calculating the Value of Tax Guaranteed Property
In line with the stipulations of the Law for Tax Collection and
Management, the tax payer may use the not mortgage property or entrust
others with providing tax guarantee. While the tax payer or tax guarantor
uses not mortgage property as tax guarantee, the value of the property
shall be calculated in the method of conversion in line with the principle
of the stipulations set in the previous ARTICLE.
VII. The Payment of Tax
In line with the stipulations of the Law for Tax Collection and
Management and its Detailed Rules, tax authorities may use the income
gained from the selling of the detained, sealed up commodities, goods or
other properties to pay tax and overdue fine. With regard to that portion
of income that exceeds the dutiable tax, overdue fine and the expense on
keeping and auctioning, tax authorities shall return the remaining money
after deducting tax fine to the parties concerned; with regard to
deficiency in paying tax and overdue fine, tax authorities shall recollect
the money according to law.
VIII. Handling of Cases Regarding the Tax Payer Who Refuses to
Accept Tax Withheld In line with the stipulations of Clause 2 of
ARTICLE 19 of the Law for Tax Collection and Management, the withholding
agent shall, within 24 hours, report to tax authorities about the case in
which the tax paper refuses to accept tax withheld, tax authorities shall
handle the case in line with the stipulations of the Law for Tax
Collection and Management.
IX. Cancellation of Measures for Preservation of Tax
In accordance with the stipulation of ARTICLES 25 and 26 of the Law
for Tax Collection and Management, when the tax payer pays tax within the
time limit set by tax authorities after measures for the preservation of
tax are adopted by tax authorities, the tax authorities shall, within 24
hours after receiving the tax payments or the tax receipt sent back from
the bank, cancel the preservation of tax.
X. Refund of Extra Tax Money
In line with the stipulations of ARTICLE 30 of the Law for Tax
Collection and Management, with regard to extra levied tax that should be
returned to the tax payer, the tax authorities shall, within 60 days from
discovering or receiving the tax payer's application for refunding, return
the extra tax payment, or use the extra levied tax to pay the next
dutiable tax in compliance with the tax payer's request.
XI. Management of Tax Reduction and Exemption
In accordance with the stipulations of ARTICLE 21 of the Law of Tax
Collection and Management, the tax payer who applies for tax reduction or
exemption, shall submit a written report to the competent tax authorities
and send related materials in line with regulations. The tax payer can
enjoy tax reduction or exemption only after his application is examined
and approved by tax authorities within the specified limit of power. After
the expiration of the period of tax reduction or exemption, the tax payer
shall resume paying tax from the day following the expiration of the
period.
During the period of tax reduction or exemption, the tax payer shall
submit a declaration on tax payment in line with the stipulations of
Clause 1 of ARTICLE 16 of the Law for Tax Collection and Management, and
send in a statistical report on tax reduction or exemption in accordance
with the stipulations of tax authorities.
The tax payer shall use the tax money thus reduced or exempted in
line with the stipulations of the tax authorities, with regard to those
who do not use the money in accordance with the stipulated purposes, the
tax authorities have the right to cancel the tax reduction or exemption
granted to them and recover the already reduced and exempted tax.
When there are changes in the qualifications for enjoying tax
reduction or exemption, the tax payer shall promptly report to the tax
authorities who, after examination and verification, shall stop tax
reduction and exemption; as regards those who fail to submit a report, the
tax authorities have the right to recover the appropriate amount of
already reduced or exempted tax.
The tax payer who gains tax reduction or exemption by cheating shall
be punished without exception for tax evasion.
XII. These Regulations go into effect from the day of publication.
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