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TABLE OF CONTENTS CHAPTER I GENERAL PROVISIONS CHAPTER II TAX REGISTRATION CHAPTER III MANAGEMENT OF BOOKS AND VOUCHERS CHAPTER IV TAX RETURNS CHAPTER V COLLECTION OF TAXES CHAPTER VI TAX EXAMINATION CHAPTER VII LEGAL RESPONSIBILITIES CHAPTER VIII DOCUMENTS FOR SERVICE CHAPTER IX SUPPLEMENTARY PROVISIONS CHAPTER I GENERAL PROVISIONS Article 1. The detailed rules have been formulated in accordance with the provisions of the "Law of the People's Republic of China on the Administration of Taxes" (hereinafter referred to "tax administration law" for short). Article 2. The tax administration law and the detailed rules shall apply to all levying of taxes by tax authorities. For taxes not covered by the tax administration law and the detailed rules, other relevant tax laws and administrative decrees shall apply. Article 3. The levying, stop levying, reduction, exemption, refund of taxes and the paying of an overdue tax shall be controlled strictly according to the tax laws and administrative decrees. Tax authorities have the right to refuse implementing the decisions conflicting with the provisions of the tax laws and administrative decrees and report the cases to higher tax authorities. Article 4. The term "departments in charge" mentioned in Article 5 of the tax administration law and in the detailed rules is referred to the Ministry of Finance and the State Tax Administration. CHAPTER II TAX REGISTRATION Article 5. The term "taxpayers" mentioned in the second paragraph of Article 9 of the tax administration law is referred to units and individuals who are obliged to pay taxes according to law and administrative decrees because of production and business operations. The scopes and methods of tax registration for these units and individuals shall be stipulated separately. Article 6. Taxpayers engaging in production and business operations shall file written applications and correctly fill in tax registration form for tax registration with the local tax authorities according to the prescribed time limit. The tax registration form shall cover the following items: (1) Name of unit, name of legal representative or business owners and the code number of this resident identification card, passport or other legal documents; (2) Places of residence and operation; (3) Nature of ownership; (4) Form of enterprise and method of accounting; (5) Scope of production or business and method of operation; (6) Registered capital, total investment, the bank with which the account is opened and the code number of the bank account; (7) Time limit of operations, number of employees and the code number of business license; (8) Responsible financial personnel and tax clerk; and (9) Other relevant matters. For branches or places for production or business operation of an enterprise in other places, the name, address, legal representative, scope of business and responsible financial personnel of the headquarters should also be stated. Article 7. In filling in the tax registration form, a taxpayer shall provide the following documents and materials according to different circumstances: (1) Business license; (2) Relevant contracts, articles of association and agreements; (3) Certificate of bank account number; (4) Resident identification card, passport or other legal documents; and (5) Other documents and materials as required by tax authorities. Article 8. The tax authorities shall complete the examination of the documents and materials provided by taxpayers for filling in the tax registration forms within 30 days starting from the date of receipt and grant registration and issue tax registration documents if they conform to the provisions. The form of the tax registration document shall be determined by the State Tax Administration. Article 9. If there is any change in the items registered, the taxpayer shall go through the alteration registration procedures at the administration for industry and commerce where the registration is made and then go through the tax registration alteration procedures with the original tax authorities within 30 days starting from the date of going through the alteration procedure at the administration for industry and commerce, it should apply for alteration of tax registration with the original tax authorities by producing necessary documents within 30 days starting from the date when the alteration is approved or announced. Article 10. If dissolution, bankruptcy, cancellation and other matters occur with the taxpayer and tax obligation should be terminated according to law, it should go through the registration cancellation procedures with the administration for industry and commerce and apply for the cancellation of tax registration by producing necessary documents with the original tax authorities. If there is no need to go through the registration cancellation procedures at the administration for industry and commerce, it should apply for cancellation of tax registration with the original tax authorities by producing necessary documents within 15 days starting from the date when the termination is approved or announced. If there is any change in the place of residence or place of operation which involves the change in the tax registration organization, it shall apply for the cancellation of tax registration with the original tax authorities and go through the tax registration procedure with the tax authorities in places where the new residence or place of operation is located before applying for alteration for industry and commerce or before the residence or place of operation is changed. If a taxpayer's business license has been revoked by the administration for industry and commerce, it should apply for the cancellation of tax registration with the original tax authorities within 15 days starting from the date of the revoking of the business license. Article 11. Before a taxpayer goes through the tax registration cancellation procedures, it should clear its tax and overdue tax, payment, fines, turning over of invoices and other tax documents with the original tax authorities. Article 12. A taxpayer shall provide the following tax registration documents except for cases the documents are not required according to regulations: (1) Application for tax reduction, exemption and refund; (2) Invoices bought; (3) Certificates for tax administration on operations outside; (4) Other matters related to taxation. Article 13. The tax withholding agents which have the obligations of withholding and collecting taxes according to the tax law and administrative decrees shall apply for and get tax withholding and collecting certificates. Article 14. Tax authorities shall examine and replace tax registration documents regularly and taxpayers should go through the examination and replacement procedures by producing related documents within the prescribed time limit. Article 15. The tax registration documents of taxpayers and the withholding and collecting certificates of withholding agents are not to be lent to others, altered, destroyed, sold or forged. If a taxpayer loses the tax registration documents or a withholding agent loses tax withholding and collecting certificates, it should file a written report to the tax authorities in charge and declare the lost documents invalid openly and apply for a new one. Article 16. A taxpayer engaging in production or business operations who wants to engage in production or business operation in other counties or cities must take the certificate for tax management on outside operations issued by the tax authorities and report to and register with the tax authorities of places of operation and accept tax management. CHAPTER III MANAGEMENT OF BOOKS AND VOUCHERS Article 17. A taxpayer engaging in production or business operation should state to keep books within 15 days starting from the date when the business license is received according to the provisions of Article 12 of the tax administration law. "Book" mentioned in the preceding paragraph refers to the general account, detailed account and day book and other auxiliary books. The general account and the day book must be bound like a book. Article 18. For individual households engaging in industry and commerce which are small in scale and lack the power of keeping books, they may appoint registered accountants or accounting personnel acknowledge by tax authorities to keep books and handle accounting affairs for them. If they have difficulty in appointing registered accountants or accounting personnel acknowledged by the tax authorities, they may, with the approval of tax authorities at and above the county level, keep a book for pasting all the payment and expenditure vouchers and a book for entry and sales of goods according to the regulations of tax authorities. Article 19. Taxpayers engaging in production or business operation should, within 15 days starting from the date of the issuance of tax registration documents, submit a report on the financing and accounting system or measures for handling financing and accounting to the tax authorities for the record. Article 20. Withholding agents should, within 10 days starting from the date of the start of tax withholding as prescribed by the tax law and administrative decrees, establish a tax withholding book according to the categories of taxes to be withheld or collected. Article 21. In cases when taxpayers and withholding agents all use computers to keep books, they should submit the bookkeeping software, programs and instructions to the tax authorities in charge before they are used. If a taxpayer or a withholding agent has a sound accounting system and can correctly and completely compute its gains or income by computers, the record stored and output may be regarded as accountant's book. But the record should be printed out and well kept. If the accounting system is not sound enough, and the gains or income cannot be computed correctly and completely by computers, the taxpayer or a withholding agent should establish a general account and other books related to tax payment or withheld taxes. Article 22. The books, accounting vouchers and accounting statements shall be kept in Chinese. In places where national autonomy is practiced, a national language shall be added. For foreign-funded enterprises and foreign enterprises, they shall be kept in Chinese and a foreign language. Article 23. The books, accounting vouchers, accounting statements, tax paid proofs and other materials related to tax payment shall be kept for ten years, except otherwise provided for by law and administrative decrees. CHAPTER IV TAX RETURNS Article 24. A taxpayer and a withholding agent should file tax returns and withholding tax report with the tax authorities in charge within the prescribed time limit stipulated by law and administrative decrees or provided by the tax authorities according to law and administrative decrees. For taxpayers who enjoy tax reduction or exemption, they shall file tax returns according to regulations within the period of tax reduction or exemption. If a taxpayer has difficulty in going to tax authorities to file tax returns, it may do it by post with the approval of tax authorities. The date of the postmark is regarded as the actual date of filing tax returns. Article 25. The tax returns of taxpayers and the withholding report by withholding agents shall cover the following contents: category of tax, tax items, taxable items or tax items due to be withheld, tax rate applied or tax amount per unit, basis for computing taxes, items deductible and standards, the amount of tax payable or the amount of tax due to be withheld and the period of time to which the taxes belong. Article 26. In filing tax returns, a taxpayer should fill in the tax application form correctly and submit the following relevant documents and materials according to different circumstances: (1) Financial and accounting statements and explanatory materials; (2) Contracts or agreements related to tax payment; (3) Tax management certificates for outside operations; (4) Relevant certificates and other documents produced by notary public at home and abroad; (5) Other documents and materials required by the tax authorities according to regulations. Article 27. In filing tax withholding reports, withholding agents should fill in the withholding report forms correctly and submit lawful documents on withholding taxes and other related documents and materials required by the tax authorities. Article 28. If a taxpayer or a withholding agent has difficulty in filing tax returns or submitting withholding reports in time and need postponement, it should file a written application for postponement with the tax authorities with the prescribed time limit, but the procedure should be completed within the time limit approved by the tax authorities. If a taxpayer or a withholding agent cannot file tax returns or submit withholding reports within the prescribed time limit due to force majeure, the period of time can be extended but procedures must be completed immediately after the force majeure is eliminated. Tax authorities should grant approval after verifying the facts. CHAPTER V COLLECTION OF TAXES Article 29. According to law and administrative decrees, tax authorities undertakes to collect all kinds of taxes and turn the tax payments, deferred payments and fines to the State treasury. Article 30. If a taxpayer has special difficulty in paying taxes and has been approved by tax authorities to postpone the payment of taxes according to the first paragraph of Article 20 of the tax administration law, no deferred payment shall be added during the period of postponement as approved. Article 31. Tax authorities can collect taxes by examining the accounts, assessment, inspection, fix amount at fixed period of time and other methods. Article 32. Tax authorities may entrust related units to collect nuisance taxes and issue to them certificates of commission tax collection. The units commissioned shall collect taxes according to the requirements listed in the certificates of commission tax collection and in the name of tax authorities. Article 33. For cases in which tax returns are posted, the tax payment should be sent by post together with the tax return forms. Tax authorities shall produce tax paid certificates after receiving tax returns and tax payment and go through the procedure of turning the tax payment to the State treasury. Article 34. The tax paid certificate mentioned in Article 22 of the tax administration law is referred to all kinds of tax paid certificates, tax memo, revenue stamps, withholding certificates and other tax paid certificates. The forms of tax paid certificates shall be determined by the State Tax Administration. Article 35. If a taxpayer has one of the following cases listed in Article 23 of the tax administration law, tax authorities have the right to adopt one of the following methods to assess the taxable amount: (1) To assess the taxable amount according to the income and profits of similar taxpayers which have similar scales of operation and levels of income in the same or similar trade; (2) To assess the taxable amount according to the cost plus reasonable amount of expenses and profits; (3) To make assessment by construction or estimation of the raw materials, fuel and power used; or (4) To make assessment by other reasonable methods. If one of the above-mentioned methods is not enough to assess the taxable amount correctly, two or more methods can be used in combination. Article 36. Associated enterprises mentioned in Article 24 of the tax administration law are referred to companies, enterprises and other economic organizations which have one of the following relations: (1) Relations of direct or indirect ownership or control with regard to funds, management and purchasing and marketing; (2) Owned or controlled by a third party directly or indirectly; or (3) Other relations co-related in interests. Taxpayers are obliged to provide the local tax authorities with materials about prices and expense standards and their business exchanges with correlative enterprises. Article 37. Business operations between independent enterprises mentioned in Article 24 of the tax administration law are referred to business exchanges conducted between enterprises which have no correlative relationship and according to fair transactional prices and operational conventions. Article 38. If the purchasing and marketing between taxpayers and their correlative enterprises are not priced according to the business exchanges between independent enterprises, tax authorities may regulate the taxable income or income and amount of taxes payable according to the following order and methods: (1) According to the prices of the same and similar operational activities conducted between independent enterprises; (2) According to the income and profit level obtained by the prices resold to the third party of non-correlative enterprises; (3) According to the cost plus reasonable expense and profits; or (4) According to other reasonable methods. Article 39. If the interest paid or obtained from the accommodation of funds between taxpayers and correlative enterprises is more or less than the amount agreed upon between enterprises without correlations or the interest rate is more or less than the normal interest rate of similar operations, the tax authorities in charge may exercise regulation according to normal interest rate. Article 40. If the taxpayers and the correlative enterprises do not follow the service fees collected or paid in the business exchanges between independent enterprises when providing labor service to each other, the tax authorities in charge may exercise regulation according to the normal fee collection standards of similar business operations. Article 41. If taxpayers and correlative enterprises do not follow the pricing or do not collect or pay fees according to the business exchanges between independent enterprises in transferring property, providing property use right and other business exchanges, tax authorities in charge may exercise regulation according to the amount agreed upon between correlative enterprises. Article 42. For units or individuals who engage in contracting for engineering projects or providing labor service without getting licenses, tax authorities may order them to pay security for tax payment. Related units or individuals should square up the tax payment with the tax authorities within the prescribed period of time. If they fail to clear the tax payment, the security for tax payment shall be used to offset the tax payment. Article 43. For units or individuals who engage in business operations without business licenses and their commodities or goods have been detained by tax authorities according to the provisions of Article 25 of the tax administration law, the parties concerned should pay taxes within 15 days starting from the date of the detainment of the commodities or goods. For fresh, live and perishable or easily worn-out commodities or goods detained, tax authorities may put them to auction within the quality warranty period and use the proceeds to offset the tax payment. Article 44. Tax payment guarantees mentioned in Article 26 and 28 of the tax administration law include the guarantors provided by taxpayers and approved by tax authorities and the property owned by the taxpayers without mortgage. Tax payment guarantors are referred to any citizen capable of providing tax payment guarantee or legal persons or other economic organizations. Government agencies are not allowed to act as tax payment guarantors. Article 45. If a tax payment guarantor agrees to provide tax payment guarantee for a taxpayer, he should make a tax payment guarantee statement, specifying the object, scope, period of time and obligations of guarantee and other related matters. The tax payment guarantee statement becomes valid only after it is signed with seals affixed by the taxpayer, the tax payment guarantor and the tax authorities. For cases when the taxpayer uses the property without mortgage it owns as guarantee, it should make a list of the property used as tax payment guarantee, specifying the values of the property and other related matters. The list of property used as tax payment guarantee is valid only after it is signed with seals affixed by the taxpayer and the tax authorities. Article 46. The detaining and sealing up of commodities and goods or other property by tax authorities must be executed by at least two tax collector and should notify the owners of the commodities or goods. If the owners are citizens, the owner or their adult relatives should be asked to be present on the occasion. If the owners are legal persons or economic organizations, the legal representatives or principal leading members should be asked to be present on the occasion. If the owners refuse to be present, it does affect the execution of the detainment or sealing up of the commodities or goods. Article 47. In offsetting tax payment by auctioning the commodities or goods or other property, the tax authorities should entrust on an auction organization established according to law or on a commercial enterprise to purchase according to the market prices. If the commodities fall into the category of goods whose free trading is forbidden by the State, they should be purchased according to the State listed prices by the relevant departments. Article 48. Compensation liabilities mentioned in the third paragraph of Article 26 of the tax administration law are referred to as the real economic losses of legal interests sustained by taxpayers due to improper securing measures adopted by the tax authorities. Article 49. "Other financial organizations" mentioned in Articles 26 and 27 of the tax administration law are referred to trust and investment corporations, rural credit cooperatives, urban credit cooperatives and other financial organizations approved by the People's Bank of China. Article 50. "Bank savings" mentioned in Article 26 and 27 of the tax administration law include bank savings by individuals households engaging in industry and commerce. Article 51. If a taxpayer engaging in production or business operation or a withholding agent fails to pay taxes or turn over the tax payment withheld, and a tax payment guarantor fails to pay the tax payment guaranteed within the prescribed time limit, tax authorities shall issue notification to press for payment, ordering them to pay taxes or turn over the tax payment withheld within a time limit, which should not exceed 15 days. Article 52. If a taxpayer fails to make good the tax payment or provide tax payment guarantee before leaving the country, tax authorities may notify entry and exit control departments to keep them from leaving the country. The specific measures for doing so shall be worked out by the State Tax Administration together with the Ministry of Public Security. Article 53. The starting and ending time for making additional deferred payment provided in the second paragraph of Article 20 of the tax administration law is from the following day of the end of the period for paying taxes provided by law, administrative decrees or provided by tax authorities according to law or administrative decrees to the time when the taxpayers, withholding agents have paid or canceled the tax payments. Article 54. "Special circumstances" mentioned in the second paragraph of Article 31 of the tax administration law is referred to tax unpaid or turned over less than the required amount or tax not withheld or not withheld in the full amount or tax collected not in the full amount due to the miscalculation by taxpayers or withholding agents and the amount has exceeded 100,000 yuan. Article 55. Tax authorities may collect without time limit the taxes not paid or not paid in full amount due to tax evasion by taxpayers, withholding agents and other parties concerned or tax refund fraud. Article 56. The period of time for payment of overdue taxes or additional tax payment provided in Article 31 of the tax administration law is calculated from the date when the taxpayers or withholding agents failed to pay or did not pay in the full amount. CHAPTER VI TAX EXAMINATION Article 57. In enforcing the provisions of Item 1 of Article 32 of the tax administration law, tax authorities may do it at the business operation sites of taxpayers or withholding agents. If necessary, with the approval of heads of tax authorities at and above the county level, tax authorities may demand taxpayers or withholding agents of submitting the account books, accountants documents, statements or other materials of the past accounting year for examination. But, when doing so, the tax authorities shall give the taxpayer or withholding agents a list of materials to be examined and shall return them within three months. Article 58. In exercising the powers provided in Article 32 (8), tax authorities shall designate special personnel and carry out the tasks with the national unified certificates for checking deposit accounts and undertake to keep secret of the examines. The form of the national unified certificates for checking deposit accounts shall be worked out by the State Tax Administration. Article 59. If the tax authorities discover that the contents of tax registration do not conform to the reality, they may order correction and collect taxes according to the real circumstances. Article 60. Tax authorities and tax personnel shall exercise their tax examination powers according to the provisions of the tax administration law and these detailed rules. Tax personnel should produce tax examination certificates before performing their duties. Taxpayers or withholding agents have the right to refuse examination if no tax examination certificate is produced. The form of tax examination certificates shall be determined by the State Tax Administration. CHAPTER VII LEGAL RESPONSIBILITIES Article 61. If a taxpayer fails to go through the procedures of tax registration, alteration or cancellation of registration within the prescribed time limit, tax authorities shall serve a notice, ordering him to correct within a prescribed time limit. If he refuses to correct it within the prescribed time limit, he shall be punished according to the provisions of Article 37 of the tax administration law. Article 62. If a taxpayer fails to establish a book account according to regulations, tax authorities shall serve a notice within three days starting from the date of examination, ordering him to establish a book account within a prescribed time limit. If he refuses to correct it within the prescribed time limit, he shall be punished according to the provisions of Article 37 of the tax administration law. For cases of destroying account books, accountants documents and other related materials in violation of the tax collection and administration law and these detailed rules before the prescribed safekeeping period, tax authorities shall impose a fine of anywhere between 2,000 yuan and 10,000 yuan. If the case is serious enough to constitute a crime, it shall be brought before the court and criminal responsibilities shall be affixed. Article 63. For cases of not using tax registration documents according to regulations or lend, destroy, sell or forge tax registration documents, the provisions of Article 37 of the tax administration law shall apply. Article 64. If a taxpayer or a withholding agent illegally provide bank accounts, invoices, certificates or other conveniences that have led to non-tax payment, shortage of tax payments or deception of export tax refund, tax authorities shall confiscate the illegal proceeds and concurrently impose a fine equal to one time of the amount not paid, in shortage or defrauded. Article 65. Tax authorities shall impose a fine on two and more acts listed in Article 37 of the administration law for taxpayers and in Article 38 for tax withholding agents. Article 66. If a tax agent has exceeded its term of reference and violated the tax laws or administrative decrees, causing non-payment of tax, shortage of tax payment, tax authorities shall impose a fine of less than 2,000 yuan on the tax agent apart from ordering the taxpayer to pay or to pay in retrospect the payable taxes and deferred payment. Article 67. If disputes arise between a taxpayer or a tax withholding agent or a tax payment guarantor and tax authorities, the taxes shall be paid or settled and deferred payment shall be made good first according to the laws and administrative decrees. Article 68. In examining and handling tax related cases, tax authorities shall make tax treatment decisions and send them to related taxpayers, tax withholding agents or other parties concerned and specify matters about administrative review and administrative law suit. Article 69. In imposing fines on or confiscating illegal proceeds from taxpayers or tax withholding agents or other parties concerned, tax authorities shall give them receipts. Taxpayers or withholding agents or other parties concerned may refuse to pay if no receipts are given. Article 70. If tax collectors illicitly divide the commodities, goods or other property detained or attached, they shall be ordered to return them and receive due administrative punishment. If the case is serious enough to constitute a crime, the case shall be handed over to judicial departments, which shall affix criminal responsibility. Article 71. If tax law violation acts occur before the implementation of the tax administration law, the laws or administrative decrees in force at the time shall be applied. CHAPTER VIII DOCUMENTS FOR SERVICE Article 72. In serving tax related documents, tax authorities shall deliver them directly to the receivers. If the receiver is a citizen, the documents shall be signed directly by the person. If the receiver is not present, they shall be signed by one of s adult relatives. If the receiver is a legal person or an organization, the documents shall be received and signed by the legal representative of the legal person, principal leading member of the organizations or by people responsible for receiving documents. If the receiver has an agent, it may be signed and received by the agent. Article 73. If the documents are served, there must be an acknowledgment, which shall be signed and affixed with seals, with the date of receipt specified by the receiver or other people receiving the documents as provided in Article 72. Article 74. If the receiver or other people receiving the documents as provided in Article 72 of these detailed rules refuse to sign, the said receiver or other related persons shall state the reasons of refusal and the date of the statement and the documents shall be signed by the receiver with witnesses and retained at the place of the receiver. This is also regarded as documents served. Article 75. If there is difficulty in serving the documents directly, other related departments or units may be entrusted to serve the documents or may be delivered by posts. Article 76. If tax documents for service are delivered directly or by commission, the date of service shall be the date signed or specified by the receiver or witnesses on the delivery receipts. If they are delivered by mail, the date of receipt specified in the mail receipt shall be regarded as the date of delivery and the documents served. Article 77. Tax authorities may make an announcement on the documents for service in one of the following cases and the date of service shall be the 30th day starting from the date when the announcement is made: (1) There are many receivers of the documents about the same matter; or (2) The documents cannot be served by methods other than provided by this chapter. Article 78. The tax documents for service mentioned in these detailed rules include: (1) Notice of tax payment; (2) Notice, ordering rectification within a time limit; (3) Urgent demand note for unpaid tax; (4) Notice of payment of taxes withheld; (5) Notice of suspension of bank deposit payment; (6) List of commodities or goods or other property detain or attached; (7) Tax treatment decisions; (8) Decisions of administrative review; and (9) Other tax documents. CHAPTER IX SUPPLEMENTARY PROVISIONS Article 79. The terms "from (figure) to (figure)...", "between (figure) and (figure)", "within...days" and "when...expires" mentioned in the tax administration law and the detailed rules all include the figures listed. Article 80. When the last day of the time limit provided for in the tax administration law and its detailed rules is a Sunday or a legal public holiday, the following day shall be deemed as the last day of the time limit. Article 81. Tax authorities shall keep confidential for those who report acts that violate the tax laws and administrative decrees and reward them according to their contributions. The reward provisions do not apply to tax collectors and government functionaries including those working in the financial, auditing and procuratorates. The prizes given to offence reporters shall be drawn from the tax fines. Article 82. The withholding and collection charges shall be drawn from the tax payment withheld or collected. Article 83. The regulations on agents commissioned by taxpayers or withholding agents shall be worked out by the State Tax Administration. Article 84. The collection of agricultural tax, animal husbandry tax, crop field occupancy tax and deed tax shall be conducted according to the relevant provisions of the tax administration law. The specific methods shall be provided for separately. Article 85. The power of interpreting the detailed rules shall rest with the Ministry of Finance and the State Tax Administration. Article 86. The detailed rules shall be implemented starting from the date of promulgation. |
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