The State Administration of Taxation ("SAT") has recently issued the Circular on Putting into Practice Matters Concerning the Further Phased Reduction of the Social Insurance Contribution Rates (the "Circular") and the Circular on Implementing the Policy on Reducing the Payment Standard of the Employment Security Fund for the Disabled.
The Circular stresses the need to thoroughly understand the significance of the initiative to cut fees and ease burden, publicize the policy in a deep-going manner to make it known extensively by the general public as much as possible, and take concrete measures to intensify administration of the collection and promote the reform in "streamlining administration, delegating powers and strengthening regulation, and improving services". The Circular requires that tax authorities shall use a variety of means, such as internet websites and mobile client terminals, to give extensive explanations and guidance in respect of adjustments to the contribution rates, so as to enable parties making the contribution to catch exactly key points of the policy and to enjoy benefits brought thereby in time. In addition, the Circular provides that, tax authorities shall accurately understand the adjusted policy, set up and update parameters of their system in a timely manner, and ensure the administration of the collection remains steady and orderly. They are also required to, pursuant to guidelines on the reform in "streamlining administration, delegating powers and strengthening regulation, and improving services", streamline their work procedures and keep business processing smooth, in a bid to provide parties making the contribution with services of higher quality, efficiency and convenience and constantly optimize the business environment.