Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection (2016 Revision)

Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection (2016 Revision) Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection (Promulgated by Order No. 362 of the State Council of the People's Republic of China on September 7, 2002; revised for the first time in accordance with the Decision of the State Council on Amending and Abolishing Some Administrative Regulations on November 9, 2012; and revised for the second time in accordance with the Decision of the State Council on Abolishing and Amending Some Administrative Regulations on July 18, 2013; and revised for the third time in accordance with the Decision of the State Council on Amending Some Administrative Regulations on February 6, 2016) Chapter I General Provisions Article 1 These 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 The Law on the Administration of Tax Collection and these Rules apply to the collection of various taxes by tax authorities according to law. In case where there is no provision in the Law on the Administration of Tax Collection and these Rules, the provisions of other tax laws, tax administrative rules or regulations shall be implemented. Article 3 Decisions made by any department, unit or individual that contravene the tax laws, tax administrative rules or regulations shall be null and void. Relevant tax authorities shall not implement these decisions and shall report to tax authorities at a higher level. Taxpayers shall fulfill their obligation of tax payment in accordance with the provisions of tax laws, tax administrative rules or regulations. Contracts, agreements and other documents signed by taxpayers that contravene tax laws, tax administrative rules or regulations shall be null and void. Article 4 The State Administration of Taxation shall be responsible for formulating overall plans, technical standards, technical designs and implementing measures in the construction of national taxation information system. According to the overall plans, technical standards, technical designs and implementing measures formulated by the State Administration of Taxation, tax authorities at various levels shall work effectively in the construction of taxation information system in their respective regions. The local people's governments at various levels shall give positive support to the construction of the taxation information system and organize the related departments to have the relevant information shared. Article 5 Information to be kept confidential for taxpayers and tax withholding agents, as stipulated in Article 8 of the Law on the Administration of Tax Collection, refers to the commercial secret and individual privacy of taxpayers and tax withholding agents. Any violation of tax law by taxpayers and withholding agents does 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 promptly rectify any violation of tax law by tax authorities at a lower level upon discovery. Tax authorities at a lower level shall promptly correct their violation of tax law according to the decision of tax authorities at a higher level. Tax authorities at a lower level shall report to tax authorities at a higher level or relevant department upon discovering any violation of tax law by 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 measures and standard for the use of award-funds shall be formulated by the State Administration of Taxation jointly with the Ministry of Finance. Article 8 When assessing the amount of tax payable, adjusting the amount of fixed tax payment, conducting tax inspection, imposing tax administrative penalties, or conducting tax administrative reconsideration, tax officials shall recuse themselves 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 interests relationship that may influence impartial law enforcement. Article 9 Taxation organs established according to provisions of the State Council and made known to the public, as stipulated in Article 14 of the Law on the Administration of Tax Collection, refer to the investigation bureaus of the tax bureaus or offices below the provincial level. The investigation 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 investigation bureau to avoid any overlap between them. Chapter II Tax Registration Article 10 Local offices of the State Administration of Taxation 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 departments for industry and commerce at every level shall periodically notify the local offices of the State Administration of Taxation and local tax bureaus at the same level of the situations of issuance, alteration, cancellation and revocation of business licenses. The specific measures for notification shall be formulated by the State Administration of Taxation jointly with the State Administration for Industry and Commerce. Article 12 Taxpayers engaged in production or business operation shall, within 30 days from the date of obtaining their business licenses, file written applications for tax registration with the competent tax authorities in the localities where the production or business operation is conducted or where the tax obligation occurs. They shall truthfully complete the tax registration form and submit the relevant certificate, documents and information as required by tax authorities. Taxpayers other than those mentioned in the preceding paragraph, except State organs and individuals, shall, by presenting relevant documents, go through the procedure for tax registration with the competent tax authorities in their localities within 30 days from the date of occurrence of tax obligation. Measures for tax registration of individual income tax by taxpayers 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 from the date of occurrence of tax withholding obligation, apply to 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, tax authorities may only record the tax withholding obligation on its tax registration certificate and will not issue a separate tax withholding registration certificate to the agent. Article 14 When any change occurs in the contents of tax registration, the taxpayer shall, within 30 days from the date of completing the procedure for changing its business license with the administrative department 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 department for industry and commerce or any other department, the taxpayer shall, within 30 days from 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 Where, 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 procedure for cancellation of its registration with the administrative department 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; where there is no need for registration with the administrative department for industry and commerce or any other department according to relevant provisions, the taxpayer shall, within 15 days from 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. Where any change in the taxpayer's domicile 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 department for industry and commerce or any other department, or before changing the domicile 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 domicile or business site is transferred. The taxpayer whose business license is revoked by the administrative department for industry and commerce or whose registration is cancelled by any other department shall, within 15 days from 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 taxes payable, surcharge on tax in arrears and penalties, and shall hand over the invoices, tax registration certificate and other taxation documents to tax authorities. Article 17 The taxpayer engaged in production or business operation shall, within 15 days from the date of opening a basic deposit account or other deposit accounts, report in writing all the account numbers to competent tax authorities, or shall submit a written report to competent tax authorities within 15 days from the date of a change, if any. Article 18 The taxpayer, except one who does not need to obtain a tax registration certificate according to the provisions, must present its 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 for business operation outside of the locality; (6) going through the procedure for termination or suspension of business operation; or (7) other matters regarding taxation. Article 19 Tax authorities shall adopt a system of periodic inspection and replacement of tax registration certificate. The taxpayer shall go through certificate inspection or replacement procedures with competent tax authorities within the prescribed time limit by presenting the relevant certificates. 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 tax authorities. In case the tax registration certificate is lost, the taxpayer shall report within 15 days in writing to competent tax authorities and make an announcement in the newspaper declaring the lost certificate invalid. Article 21 Where a taxpayer engaged in production or business operation conducts production or business operation activities temporarily in another county (city), it shall present a copy of its tax registration certificate and the taxation certificate for business operation outside of the locality 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. Where a taxpayer engaged in production or business operation conducts business in a place outside of its locality, it shall go through the tax registration procedure with local tax authorities if the time of its production or business operation in the same place exceeds 180 days in the aggregate. Chapter III Administration of Accounting Books and Vouchers Article 22 Taxpayers engaged in production or business operation shall, within 15 days from 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 general ledgers, detailed accounts, journal accounts and other auxiliary accounting books. General ledgers and journal accounts shall be bound into a book form. Article 23 Taxpayers with small-scale production or trading activities and unable to create accounts may employ professional institutions or accounting personnel approved to engage in accounting agency with account creation and book-keeping. Article 24 Taxpayers engaged in production or business operation shall, within 15 days from obtaining the tax registration certificates, submit a report on the financial and accounting systems or methods of financial and accounting settlement to competent tax authorities for the record. Taxpayers keeping book accounts with computers shall submit a report on the accounting software applied to their computer systems, the users' manual and related documents, before using them, to competent tax authorities for the record. The computerized accounting systems set up by taxpayers shall be in conformity with the relevant provisions of the State and shall be able to correctly and completely calculate the receipts or income of the taxpayer. Article 25 Tax withholding agents shall, within ten days from the date of occurrence of the withholding obligation in accordance with the provisions of the tax laws, tax 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 a taxpayer or tax withholding agent has 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. If the accounting system is not well-established, and the computer system can not accurately and completely calculate the receipts and income, or the tax withheld and paid or collected and paid, the taxpayer or tax withholding agent 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 made in Chinese. In national autonomous areas, a nationality language in common use in the locality may be used simultaneously. Foreign-funded enterprises and foreign enterprises may use a foreign language simultaneously. Article 28 Taxpayers shall install and use tax control devices as required by tax authorities, and submit the relevant data and information according to the provisions of tax authorities. The administrative measures for promoting the extensive use of tax control devices shall be separately formulated by the State Administration of Taxation and subjected to the State Council for approval before the implementation. Article 29 Accounting books, accounting vouchers, financial statements, tax payment vouchers, invoices, exportation vouchers and other tax-related documents should be legal, authentic and complete. Accounting books, accounting vouchers, financial statements, tax payment vouchers, invoices, exportation vouchers and other tax-related documents shall be maintained for 10 years, except as 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. Taxpayers or tax withholding agents may file tax returns or submit statements on tax withheld and paid or collected and paid to 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 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 returns filing. Taxpayers filing tax returns electronically shall maintain the relevant documents within the prescribed time limit according to the r......