The State Administration of Taxation ("SAT") recently released the Tax Payment Credit Evaluation Indicators and Methods (for Trial Implementation) (the "Evaluation Indicators"), to be effective from October 1, 2014.
The Evaluation Indicators are made up of three parts including taxpayers' historical credit information, internal taxation information, and external information which consists of external information for reference and external evaluation information. Of them, internal taxation information and external evaluation information will directly affect the evaluation results, while taxpayers' historical credit information and external information for reference are just recorded and not used for score deduction. According to the Evaluation Indicators, a taxpayer will be directly rated as D if it commits any of the following acts: submits false application materials when applying for eligibility for a tax preference, writes false special value-added tax invoices or accepts false special value-added tax invoices in bad faith, fails to pay retrospectively or fully pay any tax, late fees or fines within the prescribed time limits, etc.