(State Council: 4 August 1993)
(State Council: 4 August 1993)
Whole Doc.
CHAPTER I-GENERAL PRINCIPLES
Article 1
These Detailed Rules are formulated in accordance with the provisions
of the Law of the People's Republic of China to Administer the Levying and
Collection of Taxes (hereinafter referred to as the Tax Administration
Law).
Article 2
The Tax Administration Law and these Detailed Rules shall apply to
the administration of the levying and collection of the various types of
taxes imposed by the taxation authorities. In a case not covered by the
provisions of the Tax Administration Law and these Detailed Rules, matters
shall be handled in accordance with the provisions of other relevant tax
laws and administrative legislation.
Article 3
The initial levying and suspended levying of taxation, as well as tax
reductions and exemptions, tax refunds and supplementary tax payments
shall be handled in accordance with the provisions of the Tax
Administration Law and these Detailed Rules. A taxation authority shall
have the right to refuse to implement any decision in conflict with the
provisions of tax laws and administrative legislation and shall report
such a case to its higher level taxation authority.
Article 4
The State Council principal taxation authority as stated in Article 5
of the Tax Administration Law and in these Detailed Rules shall refer to
the Ministry of Finance and the State Administration of Taxation.
CHAPTER II-TAXATION REGISTRATION
Article 5
The term "taxpayer" as stated in the paragraph two of Article 9 of
the Tax Administration Law shall refer to a unit or individual not
engaging in production or business operations, but obliged to pay tax
pursuant to the provisions of the law and administrative legislation. The
scope of and measures for taxation registration for such units and
individuals shall be stipulated elsewhere.
Article 6
A taxpayer engaging in production or business operations shall file a
written application for taxation registration with the relevant taxation
authority within the stipulated time limit and shall accurately complete a
tax registration form. The main content of the tax registration form shall
include:
(1) name of unit, name of legal representative or business owner and
the number of his residency certificate, passport or other legal
documentation;
(2) place of residence and of business operations;
(3) economic nature of the operations;
(4) form of enterprise and method of accounting;
(5) scope of Production or business operations and method of
operation;
(6) registered capital, total investment, name of bank where an
account is held and bank account number;
(7) duration of the term of the production or business operations,
number of employees, business licence number;
(8) party in charge of finance matters and taxation personnel;
(9) other relevant matters.
Where an enterprise establishes a branch operation or premises
engaging in production or business operations in another district, the
enterprise must also register its head office's name, address, legal
representative, scope of business, main area of business and name of the
party in charge of finance matters.
Article 7
When presenting the taxation authority with its tax registration
form, a taxpayer shall, depending on the circumstances, provide the
following documents and material:
(1) business licence;
(2) relevant contracts, articles of association and letters of
agreement;
(3) bank account number documentation;
(4) residency certificate, passport or other legal documentation;
(5) other documents and material required by the taxation authority.
Article 8
A taxation authority shall complete its examination and verification
of the tax registration form submitted by a taxpayer and any other
documents and material provided within 30 days of their receipt. For those
applications in compliance with regulations, registration shall be granted
and a tax registration certificate shall be issued.
The format of the tax registration certificate shall be determined by
the State Administration of Taxation.
Article 9
If a change occurs to the content of its taxation registration
requiring the taxpayer to cancel the item of registration with the
administrative authority for industry and commerce, the taxpayer shall
within 30 days of registering the amendment with the administrative
authority for industry and commerce, present the relevant certificate to
the original taxation registration authority to apply for registration of
the amendment. If, in accordance with regulations, the taxpayer is not
required to cancel the item of registration with the administrative
authority for industry and commerce, the taxpayer shall within 30 days of
the relevant organ approving or announcing the amendment, present the
relevant certificate to the original taxation registration authority to
apply for registration of the amendment.
Article 10
If a taxpayer is involved in a dissolution, bankruptcy, cancellation
or other such circumstances, thus terminating its tax payment obligations
pursuant to the law, the taxpayer shall, before canceling its registration
with the administrative authority for industry and commerce, present the
relevant certificate to the original taxation registration authority to
apply for cancellation of its taxation registration. If, in accordance
with regulations, the taxpayer is not required to cancel its registration
with the administrative authority for industry and commerce, the taxpayer
shall, within 15 days of the relevant organ approving or announcing the
termination, present the relevant certificate to the original taxation
registration authority to apply for cancellation of its taxation
registration.
If a change in a taxpayer's place of residence or place of business
operations necessitates an alteration of its relevant taxation
registration authority, the taxpayer shall, before applying to the
administrative authority for industry and commerce to amend or cancel its
registration and before changing its place of residence or place of
business operations, present the relevant certificate to the original
taxation registration authority to apply for cancellation of its taxation
registration and shall carry out tax registration procedures with the
relevant taxation authority in the new region.
A taxpayer whose business licence is revoked by the administrative
authority for industry and commerce shall, within 15 days of the revoking
of the business licence, apply to the original taxation registration
authority for cancellation of its taxation registration.
Article 11
Before carrying out procedures to cancel its taxation registration, a
taxpayer shall settle all payable taxes, overdue payment fines and other
fines and shall turn over invoices and other taxation documents to the
taxation authority.
Article 12
Except in cases where a tax registration certificate is not required
in accordance with regulations, a taxpayer must present a tax registration
certificate when carrying out the following matters:
(1) applying for a tax reduction, exemption or refund;
(2) purchasing invoices;
(3) obtaining a certificate for tax revenue administration of outside
operations;
(4) other tax related matters;
Article 13
A tax withholding agent bearing an obligation to withhold, collect
and hand over taxes pursuant to tax laws and administrative legislation
shall apply to the responsible taxation authority to be issued with a tax
withholding or tax collection certificate.
Article 14
A taxation authority shall implement a regular certificate inspection
and replacement system for tax registration certificates. A taxpayer shall
present the relevant certificate to the responsible taxation authority
within the stipulated time limit to undergo certificate inspection or
replacement procedures.
Article 15
The tax registration certificate issued to taxpayers and the tax
withholding or tax collection certificate issued to tax withholding agents
shall not be permitted to be lent to others, altered, damaged, sold or
forged.
Should a taxpayer lose a tax registration certificate or a tax
withholding agent lose a tax withholding or tax collection certificate, a
written report shall be filed with the responsible taxation authority, the
lost document shall be publicly declared invalid and, at the same time, an
application shall be made for the certificate to be reissued.
Article 16
A taxpayer engaging in production or business operations who wants to
undertake production or business activities in another county (town) must
present the certificate for tax revenue administration of outside
operations, issued by its local taxation authority, to the taxation
authority of the new place of operations for inspection and registration
and shall accept its administration of taxation matters.
CHAPTER III-ADMINISTRATION OF ACCOUNT BOOKS AND VOUCHERS
Article 17
A taxpayer engaging in production or business operations shall in
accordance with the provisions of Article 12 of the Tax Administration Law
establish account books within 15 days of the date of issue of its
business licence.
The term "account books" as stated in the previous paragraph shall
refer to general ledgers, detailed accounts journals and other auxiliary
account books General ledgers and journals must be in a bound form.
Article 18
An individual industrial or commercial undertaking with only a small
production or business operation and which genuinely lacks the ability to
keep account books may appoint a registered accountant or accounting
personnel recognised by the taxation authority to keep its books and
handle accounting matters. Should there be real difficulty in appointing a
registered accountant or accounting personnel recognised by the taxation
authority, the party may, subject to approval by a taxation authority at
county level or above, keep a book for pasting in all receipt and
expenditure vouchers and a goods purchase and sale registry, etc.,
pursuant to the provisions of the taxation authority.
Article 19
Within 15 days of receipt of its tax registration certificate, a
taxpayer engaging in production or business operations, shall report
details of its financial and accounting systems or measures for handling
finance and accounting matters to the taxation authority for its records.
Article 20
Within 10 days of the start of its tax withholding obligations as
prescribed by the tax laws and administrative legislation, a tax
withholding agent shall establish a tax withholding or tax collection book
pursuant to the categories of tax to be withheld or collected.
Article 21
If a taxpayer or tax withholding agent intends using a computer to
keep accounts, details of the bookkeeping software, programs, usage
manuals and other relevant material shall first be sent to the responsible
taxation authority for its records.
If a taxpayer or tax withholding agent has a sound accounting system
and can use a computer accurately and completely to calculate its gains or
income, the account entries it stores and puts out may be regarded as an
account book The records must, however, be printed out as written entries
and kept intact, If the accounting system is not sound and gains or income
are unable to be calculated accurately and completely by computer, the
taxpayer or tax withholding agent shall establish a general ledger and
other accounts relating to its tax payments or the withholding or
collection of tax.
Article 22
Account books vouchers and statements shall be kept in the Chinese
language. In a national minority autonomous region, the local national
minority language script in common use throughout the region may be used
simultaneously. Foreign investment enterprises and foreign enterprises may
use a foreign language script simultaneously.
Article 23
Except if the provisions of relevant laws and administrative
legislation stipulate otherwise account books vouchers, statements, proof
of tax payment and other relevant tax material must be kept for 10 years.
CHAPTER IV-TAX DECLARATIONS
Article 24
A taxpayer or tax withholding agent must, within the declaration
period stipulated by the law and administrative legislation or determined
by taxation authorities pursuant to the provisions of the law and
administrative legislation, lodge a tax return or a report on tax withheld
or collected and handed over on behalf of others with the responsible
taxation authority.
A taxpayer enjoying tax reduction or exemption benefits shall lodge
tax returns in accordance with regulations during the tax reduction or
exemption period.
If a taxpayer has difficulty going to a taxation authority to lodge
its tax return, the tax return may be sent by post subject to approval by
the taxation authority. If a tax return is mailed, the date on the
postmark shall be regarded as the actual date of lodgement.
Article 25
The tax return or report on tax withheld or collected and handed over
on behalf of others which is lodged by a taxpayer or tax withholding agent
accordingly shall include the following main content: tax category,
taxable items, taxable projects or projects on which tax should be
withheld and paid over or collected and paid over applicable tax rate or
tax amount per unit, basis for tax calculations, deductible items and
standards, amount of tax payable or the amount of tax due to be withheld
or collected and paid over and the applicable tax period.
Article 26
A taxpayer lodging a tax return shall complete the tax declaration
form accurately and depending on the circumstances shall submit the
following relevant documents and material accordingly:
(1) financial and accounting statements and related explanatory
material;
(2) contracts and letters of agreement relevant to the tax payment;
(3) certificate for tax revenue administration of outside operations;
(4) relevant documentation issued by public notary bodies within
China and overseas;
(5) other documents and material required by taxation authorities in
accordance with regulations.
Article 27
A tax withholding agent filing a report on tax withheld or collected
and handed over on behalf of others shall complete the form accurately and
submit legal certificates related to its tax withholding and collection
obligations, as well as other relevant documents and material required by
the taxation authorities.
Article 28
If a taxpayer or tax withholding agent has genuine difficulty
submitting a tax return of a report on tax withheld or collected and
handed over on behalf of others within the stipulated time limit and
requires an extension, a written application for an extension shall be
lodged with the taxation authority within the stipulated time limit and,
subject to examination and approval of the application by the taxation
authority, procedures shall be completed within the approved extension
period.
If a taxpayer or tax withholding agent is unable to submit a tax
return or a report on tax withheld or collected and handed over on behalf
of others within the stipulated time limit due to force majeure, the
period may be extended, but a report must be made to the taxation
authority immediately after the force majeure conditions have abated. The
taxation authority shall grant approval after verifying the facts.
CHAPTER V-TAX COLLECTION
Article 29
In accordance with the provisions of the law and administrative
legislation, tax authorities shall collect all kinds of taxes and shall
turn over the taxes, overdue payment fines and other fines collected to
the State treasury.
Article 30
A taxpayer unable to pay taxes on schedule due to special
difficulties may, in accordance with the provisions of paragraph one of
Article 20 of the Tax Administration Law, be granted an extension subject
to approval by the taxation authority and no overdue payment fine shall be
added during the approved extension period.
Article 31
A taxation authority may collect taxes based on an examination of the
relevant accounts, assessment, inspection, fixed period fixed amount
collection and other such methods.
Article 32
A taxation authority may, in accordance with relevant State
regulations, commission related units to collect small, decentralised,
nuisance tax payments and shall issue such units with a certificate of a
commissioned tax collector. A commissioned unit shall collect taxes
lawfully in the name of the taxation authority pursuant to the conditions
stipulated in the certificate of a commissioned tax collector.
Article 33
If a taxpayer posts its tax return, the tax payment funds shall be
posted at the same time as the tax return is sent. After receiving a tax
return and tax payment funds, the taxation authority must issue the
taxpayer with proof of tax payment and carry out procedures for the
handing over of tax payments to the State treasury.
Article 34
The term "proof of tax payment certificate" as stated in Article 22
of the Tax Administration Law shall refer to the various types of tax paid
certificates, tax memos, revenue stamps, withholding certificates and
other documentation of tax payment.
The format of a tax paid certificate shall be determined by the State
Administration of Taxation.
Article 35
In the case of a taxpayer in one of the instances stated in Article
23 of the Tax Administration Law, a taxation authority shall have the
right to use one of the following methods to assess the amount of tax
payable:
(1) assess the amount of tax payable with reference to the income and
profit rate of other local taxpayers involved in the same or a similar
line of business on a similar scale and at a similar level of income;
(2) assess the amount of tax payable according to the cost, plus
reasonable amounts of expenses and profit;
(3) assess the amount of tax payable according to a calculation or
assessment of the amount of raw materials, fuel, power, etc., consumed;
(4) assess the amount of tax payable according to other reasonable
methods. If use of one of the aforesaid methods is insufficient to
accurately assess the amount of tax payable, two or more methods may be
used concurrently.
Article 36
The term "affiliated enterprise" as stated in Article 24 of the Tax
Administration Law shall refer to a company, enterprise or other economic
entity which has one of the following relationships:
(1) direct or indirect ownership or control in relation to such areas
as capital, business operations and purchases and sales;
(2) direct or indirect ownership or control by a third party;
(3) other mutually beneficial associations.
A taxpayer shall be obliged to provide its local taxation authority
with details of prices, expenses standards, etc., with regard to its
business transactions with affiliated enterprises.
Article 37
The "business transactions between independent enterprises" as stated
in Article 24 of the Tax Administration Law shall refer to business
dealings between enterprises with no correlative relationship which are
conducted pursuant to fair transaction prices and common business
practices.
Article 38
If pricing, in relation to purchasing and sales transactions
conducted between a taxpayer and an affiliated enterprise, is not handled
in line with business transactions between independent enterprises, the
taxation authority may, when determining the amount of tax payable, adjust
the amount of taxable income in accordance with the following procedures
and methods:
(1) according to pricing for the same or similar business
transactions between independent enterprises;
(2) according to the profit margin obtainable if reselling the goods
to a non-affiliated third party;
(3) according to the cost, plus reasonable expenses and profit;
(4) according to other appropriate methods.
Article 39
If, in the case of a loan between a taxpayer and an affiliated
enterprise, the amount of interest paid or received exceeds or is less
than the amount that would be agreeable between non-affiliated parties or
exceeds or is less than the normal interest rates of similar loan
services, the responsible taxation authority may make adjustments based on
normal interest rates.
Article 40
If labour service fees for labour services provided between a
taxpayer and an affiliated enterprise are not charged or paid for pursuant
to provisions for business transactions between independent enterprises,
the responsible taxation authority may make adjustments based on normal
fee standards for similar types of labour service activities.
Article 41
In the case of business transactions, such as the assigning of assets
or provision of property rights, between a taxpayer and an affiliated
enterprise, if usage fees are not priced, charged or paid for pursuant to
provisions for business transactions between independent enterprises, the
responsible taxation authority may make adjustments based on an amount
that would be agreeable to non- affiliated enterprises.
Article 42
If a unit or individual engages in contracting for engineering
projects or providing labour services without obtaining a business
licence, the taxation authority may order it to pay a tax payment security
deposit. The said unit or individual shall settle tax payments with the
taxation authority within the stipulated period. Should it fail to do so,
the tax payment security deposit shall be used to offset the amount of tax
payable.
Article 43
If a unit or individual engages in business operations without
obtaining a business licence and the taxation authority confiscates
commodities or goods and materials pursuant to the provisions of Article
25 of the Tax Administration Law, the party concerned shall pay its taxes
within 15 days of the date of confiscation. In the case of confiscated
commodities or goods and materials which are fresh, live, perishable or
easily lose their efficacy, the taxation authority may first auction them
during their quality guarantee period and then use the proceeds to offset
the amount of tax payable.
Article 44
The "tax payment guarantee" as stated in Article 26 and Article 28 of
the Tax Administration Law shall include a tax payment guarantor proposed
by the taxpayer and approved by the taxation authority, as well as
property owned by the taxpayer which is not connected with a mortgage.
A tax payment guarantor shall refer to any citizen, legal person or
other economic entity within Chinese territory able to provide a tax
payment guarantee. Government agencies shall not be permitted to act as a
tax payment guarantor.
Article 45
A tax payment guarantor agreeing to provide a tax payment guarantee
for a taxpayer shall complete a tax payment guarantee statement which
specifies the target, scope of the guarantee, duration of guarantee
period, guarantee obligations and other relevant matters. A guarantee
statement shall only be deemed to be valid after the taxpayer, tax payment
guarantor and taxation authority have signed it and affixed their seals.
If using owned property not subject to a mortgage as a tax payment
guarantee, a taxpayer shall make a detailed list of the property to be
used as a guarantee and specify the value of the property and other
relevant matters. A tax payment guarantee property inventory shall only be
deemed to be valid after the taxpayer and taxation authority have signed
it and affixed their seals.
Article 46.
The confiscation and sealing up of commodities goods and materials or
other property by a taxation authority must be executed by two or more
taxation personnel and the owner of the said items must be notified. If a
citizen, the owner or an adult member of his household shall be notified
to be present. If a legal person or economic entity, the legal
representative or person in charge shall be notified to be present. If the
principal refuses to be present. This shall not affect the carrying out of
procedures.
Article 47.
If intending to offset the proceeds of confiscated commodities, goods
and materials or other property against payable taxes, the taxation
authority shall engage an auction organisation established pursuant to the
law to auction the goods or organise a commercial enterprise to buy the
goods at market prices. If free trading in the said goods is prohibited by
the State, the relevant units shall be engaged to purchase the goods at
State listed prices.
Article 48.
The term "liability for compensation" as stated in paragraph three of
Article 26 of the Tax Administration Law shall refer to a case where the
taxation authority's adoption of inappropriate tax payment guarantee
measures causes the legal rights and interests of a taxpayer to sustain
real economic losses.
Article 49.
The term "other financial institutions" as stated in Article 26 and
Article 27 of the Tax Administration Law shall refer to trust and
investment corporations, rural credit cooperatives, urban credit
cooperatives and other financial organisations whose establishment was
approved by the People's Bank of China.
Article 50.
The term "bank savings" as stated in Article 26 and Article 27 of the
Tax Administration Law shall include the savings deposits of individual
industrial and commercial undertakings engaging in production and business
operations.
Article 51.
If a taxpayer or tax withholding agent engaging in production or
business operations fails to pay tax of fulfil tax withholding or
collection obligations within the stipulated period or if the tax payment
guarantor fails to make a guaranteed tax payment within the stipulated
period. The taxation authority shall issue a tax payment call notice
imposing a time limit for payment which shall be a maximum of 15 days.
Article 52.
If a taxpayer with outstanding tax payments fails to settle, the
amount or provide a tax payment guarantee before attempting to leave
Chinese territory, the taxation authority may notify the border control
authority to prevent the said party's departure. Detailed measures on exit
prevention procedures shall be determined by the State Administration of
Taxation in conjunction with the Ministry of Public Security.
Article 53.
The period for commencing and finishing payment of overdue payment
fines as provided in paragraph two of Article 20 of the Tax Administration
Law shall commence on the day following the end of the tax payment period
as prescribed by the law and administrative legislation or as stipulated
by taxation authorities pursuant to the law and administrative legislation
and shall continue to the day when the taxpayer or tax withholding agent
actually settles or fulfils its taxation obligations.
Article 54.
The term "special circumstances" as stated in paragraph two of
Article 31 of the Tax Administration Law shall refer to a case where a
taxpayer or tax withholding agent fails to pay tax or pays less than the
amount payable or fails to withhold or withholds an insufficient amount or
fails to collect or collects an insufficient amount due to incorrect
calculations or other such errors where the amount involved exceeds
100.000 yuan.
Article 55.
A taxation authority may pursue tax payments over an unlimited period
in a case where a taxpayer, tax withholding agent or other parties
concerned use tax evasion means to not pay taxes or to pay an insufficient
amount or to fraudulently obtain a tax rebate.
Article 56.
The period of time for supplementary payment or pursued payment of
taxes as stated in Article 31 of the Tax Administration Law shall be
calculated from the due date when the taxpayer or tax withholding agent
failed to pay or paid less than the amount payable.
CHAPTER VI-TAX INVESTIGATIONS
Article 57.
A taxation authority exercising its powers of office provided under
the provisions of item (1) of Article 31 of the Tax Administration Law may
do so at the business premises of a taxpayer or tax withholding agent. If
deemed necessary and subject to approval by the head of a taxation
authority at county level or above. The taxation authority may also demand
that the taxpayer's or tax withholding agent's account books, accounting
documentation, statements and other relevant materials of the previous
accounting year be submitted for examination. When doing so, however, the
taxation authority must provide the taxpayer or tax withholding agent with
a detailed list of the items taken and shall return them within three
months.
Article 58.
A taxation authority exercising its powers of office provided under
the provisions of item (6) of Article 32 of the Tax Administration Law
shall designate responsible personnel and conduct procedures based on the
nationally uniform permit to examine bank savings accounts, while being
obliged to maintain confidentiality in relation to the party under
investigation.
The format of the permit to examine bank savings accounts shall be
determined by the State Administration of Taxation.
Article 59.
On discovering that the content of a taxpayer's tax registration does
not conform with reality, a taxation authority may order the matter to be
rectified and shall collect taxes pursuant to the actual circumstances.
Article 60.
Taxation authorities and taxation personnel must exercise their tax
payment inspection powers in accordance with the provisions of the Tax
Administration Law and these Detailed Rules. Taxation personnel must show
their tax payment inspection certificates when carrying out such work.
Taxpayers, tax withholding agents and other parties concerned shall have
the right to refuse an inspection if no such certificate is produced.
The format of the tax payment inspection certificate shall be
determined by the State Administration of Taxation.
CHAPTER VII-LEGAL LIABILITY
Article 61.
If a taxpayer fails to carry out procedures for tax registration,
amendment or cancellation of registration on schedule, the taxation
authority shall issue the taxpayer with notice of a prescribed period
rectification order. A taxpayer failing to comply with the rectification
order within the prescribed period shall be penalised in accordance with
the provisions of Article 37 of the Tax Administration Law.
Article 62.
If a taxpayer fails to establish an account book pursuant to
regulations, the taxation authority shall, within three days of the date
of inspection, issue the taxpayer with notice of a prescribed period
rectification order. A taxpayer failing to comply with the rectification
order within the prescribed period shall be penalised in accordance with
the provisions of Article 37 of the Tax Administration Law.
If a taxpayer violates the provisions of the Tax Administration Law
and these Detailed Rules through its unauthorised destruction of account
books, accounting documentation or other relevant material before the end
of the prescribed period of safekeeping, the taxation authority may impose
a fine of between CNY 2000 yuan and CNY 10000 yuan. If a case is serious
enough to constitute a crime, it shall be transferred to a judicial organ
to pursue criminal liability in accordance with the law.
Article 63.
If a tax registration certificate is not used in accordance with
regulations or is lent, altered, destroyed, sold or forged, the matter
shall be handled pursuant to the provisions of Article 37 of the Tax
Administration Law.
Article 64.
If a taxpayer or tax withholding agent violates the law by providing
its bank account, invoices, certificates or other convenience to others,
resulting in the non-payment or insufficient payment of taxes or the
fraudulent gain of a State export rebate, the taxation authority, in
addition to confiscating the illegal proceeds, may also impose a fine
equal to one times the amount not paid, insufficiently paid or defrauded.
Article 65.
If a taxpayer or tax withholding agent is guilty of two or more acts
as stated in Article 37 or Article 38 of the Tax Administration Law
accordingly, the taxation authority may impose separate penalties.
Article 66.
If a tax agent exceeds its terms of reference and violates tax laws
and administrative legislation, resulting in a taxpayer's non- payment or
insufficient payment of taxes, in addition to the taxpayer paying or
making a supplementary payment of the tax payable and overdue payment
fines, the tax agent shall also be fined up to CNY 2000 yuan.
Article 67.
If a dispute arises between a taxpayer, tax withholding agent or tax
payment guarantor and the taxation authority, the amount of tax payable or
to be handed over and the overdue payment fine as determined by the
taxation authority in accordance with relevant laws and administrative
legislation shall first be paid.
Article 68.
A taxation authority examining and dealing with a tax-related case
shall formulate a decision for handling the tax issue and send it to
relevant taxpayers, tax withholding agents and other parties concerned, as
well as note matters relating to administrative reviews and administrative
proceedings.
Article 69.
When imposing fines or confiscating illegal proceeds from a taxpayer,
tax withholding agent or other parties concerned, a taxation authority
shall issue a receipt. The taxpayer, tax withholding agent or other
parties concerned may refuse to comply if no receipt is given.
Article 70.
Taxation personnel who illegally divide confiscated commodities,
goods and materials or any other property shall be ordered to return the
items and shall receive appropriate administrative penalties. If a case is
serious enough to constitute a crime, it shall be transferred to a
judicial organ to pursue criminal liability in accordance with the law.
Article 71.
Tax payment violations occurring before the implementation of the Tax
Administration Law shall be handled pursuant to the provisions of the laws
and administrative legislation in force at the time.
CHAPTER VIII-SERVICE OF DOCUMENTS
Article 72.
A taxation authority serving a taxation document shall deliver it
directly to the principal. If the principal is a citizen, the document
shall be signed and accepted directly by the principal. If the principal
is not present, the document shall be signed and accepted by an adult
relative with whom the principal lives. If the principal is a legal person
or other entity, the legal representative of the legal person or the head
of the entity or the party responsible for receiving documents shall sign
and accept the document. If the principal has an agent, the agent may sign
and accept the document.
Article 73.
For a document to be served, there must be an acknowledgement and the
principal or other parties approved to accept such documents, as provided
in Article 72 of these Detailed Rules, shall note the date of receipt of
the document and affix their signature or seal to the acknowledgement.
Article 74.
If the principal or another party approved to accept such documents,
as provided in Article 72 of these Detailed Rules, refuses to sign and
accept a taxation document, the party serving the notice shall note the
reason for refusal and the date on the acknowledgement. The party serving
the notice and a witness shall then affix their signature or seal and the
said taxation document shall be left at the place of the principal. The
document shall then be deemed to have been served.
Article 75.
If it is difficult to directly serve a document, a relevant organ or
other unit may be entrusted to serve the document or it may be posted.
Article 76.
When a taxation document is served directly or on commission, the
date of service shall be the date noted by the party signing and accepting
the document or the date noted by the witness on the service
acknowledgement. If delivered by mail, the date of receipt noted on the
registered postal article shall be considered to be the date of service
and the document shall be deemed to have already been served.
Article 77.
A taxation authority may publicly serve a taxation document, and the
document shall be deemed to have been served 30 days from the date of the
announcement, when publicly announced in any of the following instances:
(1) the same document needs to be served to a large number of people;
(2) the document cannot be served through any of the other methods of
service outlined in this Chapter.
Article 78.
The taxation documents for service as referred to in these Detailed
Rules shall include:
(1) notice of tax payments;
(2) notice of a prescribed period rectification order;
(3) tax payment call notice;
(4) notice of tax payments withheld;
(5) notice of suspension of payment of bank deposits;
(6) detailed list of commodities, goods and materials and other
property which has been confiscated and sealed up;
(7) decision on the handling of tax issues;
(8) decision on an administrative review;
(9) other taxation documents.
CHAPTER IX-SUPPLEMENTARY PRINCIPLES
Article 79.
The terms "... (figure) ... and above", "up to ... (figure) ..."
"between ... (figure) ... and ... (figure) ...", "within ... days" and
"on the expiry of ..." as stated in the Tax Administration Law and these
Detailed Rules shall all include in the amount the figures listed.
Article 80.
If the last day of a time limit as stipulated in the Tax
Administration Law and these Detailed Rules is a Sunday or legal public
holiday, the following day shall be deemed to be the last day of the
stipulated time limit.
Article 81.
Taxation authorities shall maintain the confidentiality of persons
who report acts which violate taxation laws and administrative legislation
and shall reward them appropriately in accordance with the importance of
their contribution.
The aforesaid reward provisions shall not apply to taxation personnel
or government functionaries employed in such areas as finance and auditing
or procuratorial personnel.
Reward given to persons reporting offences shall be allocated from
tax payment fines.
Article 82.
The tax withholding and collection service fees paid in accordance
with the provisions of paragraph three of Article 19 of the Tax
Administration Law shall be allocated from tax payments withheld or
collected and handed over.
Article 83.
Measures on taxation matters to be handled by tax agents commissioned
by taxpayers and withholding agents shall be determined by the State
Administration of Taxation.
Article 84.
Administration of the levying and collection of agricultural tax,
pastoral tax, cultivated land usage tax and deed tax shall be handled with
reference to the relevant provisions of the Tax Administration Law.
Detailed measures for tax payment levying and collection shall be
stipulated elsewhere.
Article 85.
The Ministry of Finance and the State Administration of Taxation
shall be responsible for interpreting these Detailed Rules.
Article 86.
These Detailed Rules shall take effect from the date of promulgation.
thin Chinese territory able to provide a tax
payment guarantee. Government agencies shall not be permitted to act as a
tax payment guarantor.
Article 45
A tax payment guarantor agreeing to provide a tax payment guarantee
for a taxpayer shall complete a tax payment guarantee statement which
specifies the target, scope of the guarantee, duration of guarantee
period, guarantee obligations and other relevant matters. A guarantee
statement shall only be deemed to be valid after the taxpayer, tax payment
guarantor and taxation authority have signed it and affixed their seals.
If using owned property not subject to a mortgage as a tax payment
guarantee, a taxpayer shall make a detailed list of the property to be
used as a guarantee and specify the value of the property and other
relevant matters. A tax payment guarantee property inventory shall only be
deemed to be valid after the taxpayer and taxation authority have signed
it and affixed their seals.
Article 46.
The confiscation and sealing up of commodities goods and materials or
other property by a taxation authority must be executed by two or more
taxation personnel and the owner of the said items must be notified. If a
citizen, the owner or an adult member of his household shall be notified
to be present. If a legal person or economic entity, the legal
representative or person in charge shall be notified to be present. If the
principal refuses to be present. This shall not affect the carrying out of
procedures.
Article 47.
If intending to offset the proceeds of confiscated commodities, goods
and materials or other property against payable taxes, the taxation
authority shall engage an auction organisation established pursuant to the
law to auction the goods or organise a commercial enterprise to buy the
goods at market prices. If free trading in the said goods is prohibited by
the State, the relevant units shall be engaged to purchase the goods at
State listed prices.
Article 48.
The term "liability for compensation" as stated in paragraph three of
Article 26 of the Tax Administration Law shall refer to a case where the
taxation authority's adoption of inappropriate tax payment guarantee
measures causes the legal rights and interests of a taxpayer to sustain
real economic losses.
Article 49.
The term "other financial institutions" as stated in Article 26 and
Article 27 of the Tax Administration Law shall refer to trust and
investment corporations, rural credit cooperatives, urban credit
cooperatives and other financial organisations whose establishment was
approved by the People's Bank of China.
Article 50.
The term "bank savings" as stated in Article 26 and Article 27 of the
Tax Administration Law shall include the savings deposits of individual
industrial and commercial undertakings engaging in production and business
operations.
Article 51.
If a taxpayer or tax withholding agent engaging in production or
business operations fails to pay tax of fulfil tax withholding or
collection obligations within the stipulated period or if the tax payment
guarantor fails to make a guaranteed tax payment within the stipulated
period. The taxation authority shall issue a tax payment call notice
imposing a time limit for payment which shall be a maximum of 15 days.
Article 52.
If a taxpayer with outstanding tax payments fails to settle, the
amount or provide a tax payment guarantee before attempting to leave
Chinese territory, the taxation authority may notify the border control
authority to prevent the said party's departure. Detailed measures on exit
prevention procedures shall be determined by the State Administration of
Taxation in conjunction with the Ministry of Public Security.
Article 53.
The period for commencing and finishing payment of overdue payment
fines as provided in paragraph two of Article 20 of the Tax Administration
Law shall commence on the day following the end of the tax payment period
as prescribed by the law and administrative legislation or as stipulated
by taxation authorities pursuant to the law and administrative legislation
and shall continue to the day when the taxpayer or tax withholding agent
actually settles or fulfils its taxation obligations.
Article 54.
The term "special circumstances" as stated in paragraph two of
Article 31 of the Tax Administration Law shall refer to a case where a
taxpayer or tax withholding agent fails to pay tax or pays less than the
amount payable or fails to withhold or withholds an insufficient amount or
fails to collect or collects an insufficient amount due to incorrect
calculations or other such errors where the amount involved exceeds
100.000 yuan.
Article 55.
A taxation authority may pursue tax payments over an unlimited period
in a case where a taxpayer, tax withholding agent or other parties
concerned use tax evasion means to not pay taxes or to pay an insufficient
amount or to fraudulently obtain a tax rebate.
Article 56.
The period of time for supplementary payment or pursued payment of
taxes as stated in Article 31 of the Tax Administration Law shall be
calculated from the due date when the taxpayer or tax withholding agent
failed to pay or paid less than the amount payable.
CHAPTER VI-TAX INVESTIGATIONS
Article 57.
A taxation authority exercising its powers of office provided under
the provisions of item (1) of Article 31 of the Tax Administration Law may
do so at the business premises of a taxpayer or tax withholding agent. If
deemed necessary and subject to approval by the head of a taxation
authority at county level or above. The taxation authority may also demand
that the taxpayer's or tax withholding agent's account books, accounting
documentation, statements and other relevant materials of the previous
accounting year be submitted for examination. When doing so, however, the
taxation authority must provide the taxpayer or tax withholding agent with
a detailed list of the items taken and shall return them within three
months.
Article 58.
A taxation authority exercising its powers of office provided under
the provisions of item (6) of Article 32 of the Tax Administration Law
shall designate responsible personnel and conduct procedures based on the
nationally uniform permit to examine bank savings accounts, while being
obliged to maintain confidentiality in relation to the party under
investigation.
The format of the permit to examine bank savings accounts shall be
determined by the State Administration of Taxation.
Article 59.
On discovering that the content of a taxpayer's tax registration does
not conform with reality, a taxation authority may order the matter to be
rectified and shall collect taxes pursuant to the actual circumstances.
Article 60.
Taxation authorities and taxation personnel must exercise their tax
payment inspection powers in accordance with the provisions of the Tax
Administration Law and these Detailed Rules. Taxation personnel must show
their tax payment inspection certificates when carrying out such work.
Taxpayers, tax withholding agents and other parties concerned shall have
the right to refuse an inspection if no such certificate is produced.
The format of the tax payment inspection certificate shall be
determined by the State Administration of Taxation.
CHAPTER VII-LEGAL LIABILITY
Article 61.
If a taxpayer fails to carry out procedures for tax registration,
amendment or cancellation of registration on schedule, the taxation
authority shall issue the taxpayer with notice of a prescribed period
rectification order. A taxpayer failing to comply with the rectification
order within the prescribed period shall be penalised in accordance with
the provisions of Article 37 of the Tax Administration Law.
Article 62.
If a taxpayer fails to establish an account book pursuant to
regulations, the taxation authority shall, within three days of the date
of inspection, issue the taxpayer with notice of a prescribed period
rectification order. A taxpayer failing to comply with the rectification
order within the prescribed period shall be penalised in accordance with
the provisions of Article 37 of the Tax Administration Law.
If a taxpayer violates the provisions of the Tax Administration Law
and these Detailed Rules through its unauthorised destruction of account
books, accounting documentation or other relevant material before the end
of the prescribed period of safekeeping, the taxation authority may impose
a fine of between CNY 2000 yuan and CNY 10000 yuan. If a case is serious
enough to constitute a crime, it shall be transferred to a judicial organ
to pursue criminal liability in accordance with the law.
Article 63.
If a tax registration certificate is not used in accordance with
regulations or is lent, altered, destroyed, sold or forged, the matter
shall be handled pursuant to the provisions of Article 37 of the Tax
Administration Law.
Article 64.
If a taxpayer or tax withholding agent violates the law by providing
its bank account, invoices, certificates or other convenience to others,
resulting in the non-payment or insufficient payment of taxes or the
fraudulent gain of a State export rebate, the taxation authority, in
addition to confiscating the illegal proceeds, may also impose a fine
equal to one times the amount not paid, insufficiently paid or defrauded.
Article 65.
If a taxpayer or tax withholding agent is guilty of two or more acts
as stated in Article 37 or Article 38 of the Tax Administration Law
accordingly, the taxation authority may impose separate penalties.
Article 66.
If a tax agent exceeds its terms of reference and violates tax laws
and administrative legislation, resulting in a taxpayer's non- payment or
insufficient payment of taxes, in addition to the taxpayer paying or
making a supplementary payment of the tax payable and overdue payment
fines, the tax agent shall also be fined up to CNY 2000 yuan.
Article 67.
If a dispute arises between a taxpayer, tax withholding agent or tax
payment guarantor and the taxation authority, the amount of tax payable or
to be handed over and the overdue payment fine as determined by the
taxation authority in accordance with relevant laws and administrative
legislation shall first be paid.
Article 68.
A taxation authority examining and dealing with a tax-related case
shall formulate a decision for handling the tax issue and send it to
relevant taxpayers, tax withholding agents and other parties concerned, as
well as note matters relating to administrative reviews and administrative
proceedings.
Article 69.
When imposing fines or confiscating illegal proceeds from a taxpayer,
tax withholding agent or other parties concerned, a taxation authority
shall issue a receipt. The taxpayer, tax withholding agent or other
parties concerned may refuse to comply if no receipt is given.
Article 70.
Taxation personnel who illegally divide confiscated commodities,
goods and materials or any other property shall be ordered to return the
items and shall receive appropriate administrative penalties. If a case is
serious enough to constitute a crime, it shall be transferred to a
judicial organ to pursue criminal liability in accordance with the law.
Article 71.
Tax payment violations occurring before the implementation of the Tax
Administration Law shall be handled pursuant to the provisions of the laws
and administrative legislation in force at the time.
CHAPTER VIII-SERVICE OF DOCUMENTS
Article 72.
A taxation authority serving a taxation document shall deliver it
directly to the principal. If the principal is a citizen, the document
shall be signed and accepted directly by the principal. If the principal
is not present, the document shall be signed and accepted by an adult
relative with whom the principal lives. If the principal is a legal person
or other entity, the legal representative of the legal person or the head
of the entity or the party responsible for receiving documents shall sign
and accept the document. If the principal has an agent, the agent may sign
and accept the document.
Article 73.
For a document to be served, there must be an acknowledgement and the
principal or other parties approved to accept such documents, as provided
in Article 72 of these Detailed Rules, shall note the date of receipt of
the document and affix their signature or seal to the acknowledgement.
Article 74.
If the principal or another party approved to accept such documents,
as provided in Article 72 of these Detailed Rules, refuses to sign and
accept a taxation document, the party serving the notice shall note the
reason for refusal and the date on the acknowledgement. The party serving
the notice and a witness shall then affix their signature or seal and the
said taxation document shall be left at the place of the principal. The
document shall then be deemed to have been served.
Article 75.
If it is difficult to directly serve a document, a relevant organ or
other unit may be entrusted to serve the document or it may be posted.
Article 76.
When a taxation document is served directly or on commission, the
date of service shall be the date noted by the party signing and accepting
the document or the date noted by the witness on the service
acknowledgement. If delivered by mail, the date of receipt noted on the
registered postal article shall be considered to be the date of service
and the document shall be deemed to have already been served.
Article 77.
A taxation authority may publicly serve a taxation document, and the
document shall be deemed to have been served 30 days from the date of the
announcement, when publicly announced in any of the following instances:
(1) the same document needs to be served to a large number of people;
(2) the document cannot be served through any of the other methods of
service outlined in this Chapter.
Article 78.
The taxation documents for service as referred to in these Detailed
Rules shall include:
(1) notice of tax payments;
(2) notice of a prescribed period rectification order;
(3) tax payment call notice;
(4) notice of tax payments withheld;
(5) notice of suspension of payment of bank deposits;
(6) detailed list of commodities, goods and materials and other
property which has been confiscated and sealed up;
(7) decision on the handling of tax issues;
(8) decision on an administrative review;
(9) other taxation documents.
CHAPTER IX-SUPPLEMENTARY PRINCIPLES
Article 79.
The terms "... (figure) ... and above", "up to ... (figure) ..."
"between ... (figure) ... and ... (figure) ...", "within ... days" and
"on the expiry of ..." as stated in the Tax Administration Law and these
Detailed Rules shall all include in the amount the figures listed.
Article 80.
If the last day of a time limit as stipulated in the Tax
Administration Law and these Detailed Rules is a Sunday or legal public
holiday, the following day shall be deemed to be the last day of the
stipulated time limit.
Article 81.
Taxation authorities shall maintain the confidentiality of persons
who report acts which violate taxation laws and administrative legislation
and shall reward them appropriately in accordance with the importance of
their contribution.
The aforesaid reward provisions shall not apply to taxation personnel
or government functionaries employed in such areas as finance and auditing
or procuratorial personnel.
Reward given to persons reporting offences shall be allocated from
tax payment fines.
Article 82.
The tax withholding and collection service fees paid in accordance
with the provisions of paragraph three of Article 19 of the Tax
Administration Law shall be allocated from tax payments withheld or
collected and handed over.
Article 83.
Measures on taxation matters to be handled by tax agents commissioned
by taxpayers and withholding agents shall be determined by the State
Administration of Taxation.
Article 84.
Administration of the levying and collection of agricultural tax,
pastoral tax, cultivated land usage tax and deed tax shall be handled with
reference to the relevant provisions of the Tax Administration Law.
Detailed measures for tax payment levying and collection shall be
stipulated elsewhere.
Article 85.
The Ministry of Finance and the State Administration of Taxation
shall be responsible for interpreting these Detailed Rules.
Article 86.
These Detailed Rules shall take effect from the date of promulgation.
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