Tax Collection Administration Law of the People's Republic of China (2015 Amendment)

Tax Collection Administration Law of the People's Republic of China (2015 Amendment) Tax Collection Administration Law of the People's Republic of China (Adopted at the 27th Session of the Standing Committee of the Seventh National People's Congress on September 4, 1992; Amended for the first time in accordance with the Decision to Amend the Tax Collection Administration Law of the People's Republic of China made at the 12th meeting of the Standing Committee of the Eighth National People's Congress on February 28, 1995; Revised at the 21st Session of the Standing Committee of the Ninth National People's Congress on April 28, 2001; and amended for the second time in accordance with the Decision of Standing Committee of the National People's Congress on Amending the Cultural Relics Protection Law of the People's Republic of China and Other Eleven Laws as adopted at the Third Session of the Standing Committee of the Twelfth National People's Congress on June 29, 2013; and amended for the third time in accordance with the Decision on Amending the Seven Laws Including the Law of the People's Republic of China on Ports adopted at the Third Session of the Twelfth National People's Congress on April 24, 2015) Contents Chapter I General Provisions Chapter II Tax Administration Section 1 Tax Registration Section 2 Administration of Accounting Books and Supporting Vouchers Section 3 Filing Tax Returns Chapter III Tax Collection Chapter IV Tax Inspection Chapter V Legal Liabilities Chapter VI Supplementary Provisions Chapter I General Provisions Article 1 This law has been formulated with a view to strengthening the administration of tax collection, regulating tax collection and payment, guaranteeing the tax revenue of the State, protecting the legitimate rights and interests of taxpayers and promoting economic and social development. Article 2 This Law shall apply to the administration of tax collection in respect of all taxes collected by tax authorities in accordance with the law. Article 3 The collection of tax or the cessation thereof, the reduction, exemption and refund of tax as well as the payment of tax dodged or overdue shall be implemented in accordance with the law or, if the State Council is authorized by the law to formulate relevant provisions, in accordance with the relevant provisions prescribed in administrative regulations formulated by the State Council. No governmental organs, entities or individuals may be permitted to make without authorization, by violating laws or administrative regulations, decisions regarding the collection of tax or the cessation thereof, the reduction, exemption or refund of tax, the payment of tax dodged or overdue or decisions in conflict with other tax laws or administrative regulations. Article 4 Entities or individuals obligated to pay taxes prescribed in the laws or administrative regulations are the taxpayers. Entities or individuals obligated to withhold and remit taxes or collect and remit taxes prescribed in the laws or administrative regulations are the withholding agents. Taxpayers or withholding agents must pay taxes, or withhold and remit taxes or collect and remit taxes in accordance with the law or the administrative regulations. Article 5 The competent tax departments under the State Council shall be in charge of the administration of tax collection for the whole country. All the national tax bureaus and local tax bureaus shall respectively administer the tax collection in accordance with the scopes of administration of tax collection stipulated by the State Council. The local people's government at each level shall strengthen its leadership or coordination in the administration of tax collection within its jurisdiction, support the tax authorities in performance of the duties in accordance with the law, and in the computation of the tax amount by national tariff, and the collection of taxes in accordance with the law. The various departments and entities concerned shall support and assist the tax authorities in the performance of the duties in accordance with the law. No entities or individuals shall impede the tax authorities from performing duties in accordance with the law. Article 6 The State shall systematically furnish the tax authorities at all levels with modern information technologies, strengthen the modernization of the information system on the administration of tax collection, establish and amplify the information communion system between tax authorities and other governmental administrative authorities. Taxpayers, withholding agents and other relevant entities shall, in accordance with relevant provisions of the State, truthfully provide the tax authorities with information related to tax payment and taxes withheld and remitted or collected and remitted. Article 7 Tax authorities shall extensively disseminate tax laws and administrative regulations, the knowledge of tax payment, and gratuitously provide taxpayers with consulting services on tax payment. Article 8 Taxpayers and withholding agents shall have the right to inquire of the tax authorities about the tax laws and administrative regulations of the State as well as the information related to tax payment procedures. Taxpayers and withholding agents shall have the right to require the tax authorities to maintain confidentiality for the information of the taxpayers and withholding agents. The tax authorities shall maintain confidentiality for the information of the taxpayers and withholding agents in accordance with the law. Taxpayers shall, in accordance with the law, have the rights to apply for the reduction, exemption and refund of tax. Taxpayers and withholding agents shall have the right to statement and the right of defense to the decisions made by tax authorities; and shall have the rights to apply for administrative reconsideration, institute administrative litigation, ask for State compensation, etc. in accordance with the law. Taxpayers and withholding agents shall have the right to bring charges against or make exposure of any tax authority or tax official for violation of laws or disciplines. Article 9 Tax authorities shall make the effort to make their officials qualified and efficient for their duties. Tax authorities and tax officials must enforce the law impartially and devote themselves to their duties, be clean and honest, treat people politely, provide services courteously, respect the taxpayers and withholding agents and protect the rights of them, and accept supervisions in accordance with the law. Tax officials shall not extort or take bribes, commit fraudulence for selfish purposes, neglect their duties, or fail to collect or under collect the taxes payable; nor shall they abuse their powers to over collect taxes or deliberately make difficulties for taxpayers and withholding agents. Article 10 The tax authorities at all levels shall establish and amplify the administrative system of interior restriction and supervision. The tax authorities at the upper levels shall supervise the enforcement of the law of the tax authorities at the lower levels in accordance with the law. The tax authority at each level shall supervise and inspect its officials on the enforcement of laws and administrative regulations as well as their adherence to the principle of honesty and self-discipline. Article 11 The duties of the officials in a tax authority who are respectively responsible for collection, administration, check and administrative reconsideration shall be clearly defined, and the rights and functions of the said officials shall be separated from each other and checked. Article 12 Where any tax official has a personal interest with the taxpayer or withholding agent or in the case in violation of tax laws, when collecting taxes or investigating and disposing of a case in violation of tax laws, he shall withdraw. Article 13 Any entity or individual shall have the right to make exposures of any acts committed in violation of the law or the administrative regulations. The authorities who receive such exposures or who are in charge of investigation and disposition shall keep the secret for the informers. The tax authorities shall grant the informers rewards in accordance with the relevant provisions. Article 14 The "tax authorities" in this Law means the tax bureaus at all levels, their sub- bureaus, tax stations and tax institutions which are established in accordance with the provisions of the State Council and announced to the society. Chapter II Tax Administration Section 1 Tax Registration Article 15 Enterprises, branches in other localities established by such enterprises, sites engaged in production or business operations, individual businesses as well as public institutions engaged in production or business operations (hereinafter referred to as "taxpayers engaged in production or business operations" collectively) shall, within 30 days after receipt of the business license, apply for the tax registration with the tax authority by producing the relevant documents. The tax authority shall conduct registration formalities and issues tax registration certificates on the same day of receipt of the application. The administrative authorities for industry and commerce shall regularly inform tax authorities of the registration and issuance of business licenses. The scope of and methods for tax registration by taxpayers and for tax withholding registration formalities by withholding agents other than those as prescribed in Paragraph 1 of this Article shall be stipulated by the State Council. Article 16 Where a change occurs in the contents of tax registration of a taxpayer engaged in production or business operations, the taxpayer concerned shall, within 30 days as of the date of completing the formalities for such change in registration with the administrative authority for industry and commerce or prior to the application for cancellation of registration to the administrative authority for industry and commerce, apply for and complete the formalities for the change or cancellation of tax registration with the tax authority by producing the relevant documents. Article 17 A taxpayer engaged in production or business operations shall, in accordance with relevant provisions of the State, open a basic deposit account and other deposit accounts in a bank or other financial institution by producing the tax registration certificates, and shall report all his account numbers to the tax authority. The bank or other financial institution shall record the numbers of the tax registration certificates in the accounts of the taxpayer engaged in production or business operations, and shall record the account numbers of the said taxpayer in the tax registration certificates. When a tax authority is inquiring about the opening of account of a taxpayer engaged in production or business operations in accordance with the law, relevant banks and other financial institutions shall provide their assistance. Article 18 Taxpayers shall use tax registration certificates in accordance with the provisions formulated by the competent tax departments under the State Council. The tax registration certificates shall not be lent, altered, damaged, traded or forged. Section 2 Administration of Accounting Books and Supporting Vouchers Article 19 Taxpayers or withholding agents shall establish accounting books in accordance with relevant laws and administrative regulations, the provisions formulated by the fiscal or tax department under the State Council, keep accounts based on legitimate and valid vouchers and conduct accounting. Article 20 The financial and accounting systems or methods and the accounting software of a taxpayer engaged in production or business operations shall be submitted to the tax authority for records. Where the financial and accounting systems or methods of a taxpayer or a withholding agent are in conflict with the relevant tax provisions formulated by the State Council or the fiscal or tax departments under the State Council, the calculation of the tax payable as well as the tax withheld and remitted or collected and remitted shall be made in accordance with the relevant tax provisions formulated by the State Council or the fiscal or tax departments under the State Council. Article 21 A tax authority is the authority in charge of invoices, and is responsible for the administration and supervision of the printing, purchase, issuance, acquirement, maintenance, cancellation of invoices. A entity or individual shall, when purchasing or selling commodities, providing or accepting operational services, and being engaged in other operational activities, issue, use and acquire invoices in accordance with relevant provisions. The measures on the administration of invoices shall be formulated by the State Council. Article 22 Special VAT invoices shall be printed by enterprises designated by the competent tax departments under the State Council; other invoices shall be printed by enterprises designated by the tax departments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government in accordance with the provisions made by the competent tax departments under the State Council. No enterprises are permitted to print invoices without authorization by the competent tax departments prescribed in the preceding paragraph. Article 23 The State may, based on the needs on the administration of tax collection, actively extend and apply tax-control facilities. Taxpayers shall install and use the tax-control facilities in accordance with the provisions, and shall not damage the tax-control facilities or alter them without authorization. Article 24 Taxpayers or withholding agents engaged in production or business operations must maintain accounting books, supporting vouchers for the accounts, tax payment receipts and other relevant information within the period prescribed by the fiscal or tax departments under the State Council. Accounting books, supporting vouchers for the accounts, tax payment receipts and other relevant information shall not be forged, revised or damaged without authorization. Section 3 Filing Tax Returns Article 25 Taxpayers must, in accordance with the laws and administrative regulations, and in keeping with the time limit and contents for filing tax returns determined by the tax authorities in accordance with the provisions in laws and the administrative regulations, truthfully file tax returns, submit tax return statements, financial and accounting statements as well as other information on tax payment required by the tax authorities based on practical needs. Withholding agents must, in accordance with the laws and administrative regulations, or the time limit and contents for filing tax returns determined by the tax authorities in accordance with the provisions in laws and the administrative regulations, truthfully submit reporting schedules on taxes withheld and remitted or collected and remitted as well as other relevant information required by the tax authorities based on practical needs. Article 26 Taxpayers and withholding agents may directly file tax returns or submit reporting schedules on the taxes withheld and remitted or collected and remitted in tax authorities directly or by post, data telegram or by other means in accordance with relevant provisions. Article 27 Where a taxpayer or withholding agent is unable to file tax returns or to submit reporting schedules on the taxes withheld and remitted or collected and remitted within a prescribed time limit, the filing of the tax returns or the submission of the reporting schedules may be postponed upon check and approval by the tax authority,. Where the filing of the tax returns or submission of the reporting schedules prescribed in the preceding paragraph is postponed upon check and approval, the taxes shall be prepaid within the period of tax payment in accordance with the amount of taxes actually paid in the last period or assessed by the tax authority, and the tax settlement shall be handled within the postponed period upon check and approval. Chapter III Tax Collection Article 28 The tax authorities shall collect taxes in accordance with the laws and administrative regulations. They shall not collect, cease to collect, over collect, under collect, collect in advance, postpone the collection of or apportion taxes in violation of the laws or administrative regulations. The amount of agricultural taxes payable shall be assessed in accordance with the laws and administrative regulations. Article 29 Except for tax authorities, tax officials and the entities and personnel entrusted by tax authorities in accordance with the law or the administrative regulations, no entity or individual may collect taxes. Article 30 Withholding agents shall fulfill their obligations of withholding or colle......