Law of the People's Republic of China on the Administration of Tax Levying (Amended in 1995)

Law of the People's Republic of China on the Administration of Tax Levying (Amended in 1995)


Law of the People's Republic of China on the Administration of Tax Levying (Amended in 1995)

February 28, 1995

(Adopted at the 27th Session of the Standing Committee of the Seventh National People's Congress on September 4, 1992, and amended according to the Decision on Amending the Law of the People's Republic of China on the Administration of Tax Levying at the 12th Session of the Standing Committee of the Eighth National People's Congress on February 28, 1995)

Chapter I Central Provisions

Article 1 This law has been formulated with a view to strengthening the administration of tax collection, guaranteeing the tax revenue of the State and safeguarding the legitimate rights and interests of the taxpayers.

Article 2 This Law shall apply to the administration of tax collection in respect of all taxes collected by the tax authorities in accordance with tax laws.

Article 3 The collection of tax or the cessation thereof, the reduction, exemption and refund of tax as well as the payment of tax underpaid shall be implemented in accordance with the law or the relevant provisions stipulated in administrative regulations formulated by the State Council, provided that the State Council is authorized by the law to formulate the relevant provisions.
No governmental organs, entities or individuals may be permitted to make decisions without authorization regarding the collection of tax or the cessation there of, the reduction, exemption or refund of tax, or the payment of tax underpaid in violation of the law or the administrative regulations.

Article 4 Entities or individuals which are obligated to pay tax in accordance with the law or the administrative regulations are the taxpayers.
Entities or individuals which are obligated to withhold and remit tax or collect and remit tax in accordance with the law or the administrative regulations are the withholding agents. Taxpayers or withholding agents must pay tax, or withhold and remit tax or collect and remit tax 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.
The local people's governments at various levels shall strengthen their leadership in the administration of tax collection within their jurisdictions and support the tax authorities in carrying out their duties and accomplishing their tasks of tax collection in accordance with the law.
The various departments and entities concerned shall support and assist the tax authorities in carrying out their duties in accordance with the law.
No entities or individuals shall impede the tax authorities from carrying out their duties in accordance with the law.

Article 6 Tax officials must implement the law impartially and devote themselves to their duties. They shall not extort or take bribes, practice favouritism, commit malpractice, neglect their duties, or fail to collect or undercollect the amount of tax payable. Nor shall they abuse their powers to overcollect tax or deliberately create difficulties for taxpayers and withholding agents.

Article 7 Any entity or individual shall have the right to report any acts committed in violation of the law or the administrative regulations. The tax authorities shall maintain confidentiality in respect of the informants and grant them rewards in accordance with the relevant provisions.

Article 8 The "tax authorities" referred to in this Law means the tax bureaux at various levels and their subbureaux and tax stations.

Chapter II Tax Administration

Section 1 Tax Registration

Article 9 Enterprises, branches in other jurisdictions established by the enterprises, sites engaged in production or business operations, individual households engaged in industry and commerce as well as institutions engaged in production or business operations (hereinafter collectively referred to as "taxpayers engaged in production or business operations") shall, within 30 days after the receipt of a business licence, report to and complete tax registration formalities with the tax authorities on presentation of the relevant supporting documents. Upon examination and verification of the supporting documents, the tax authorities shall issue tax registration certificates.
The scope and methods for tax registration formalities which shall be carried out by taxpayers other than those as prescribed in the preceding Paragraph shall be formulated by the State Council.

Article 10 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 after the date of completing the formalities for such change in the business registration with the Administration for Industry and Commerce or prior to the submission of an application for cancellation of business registration to the Administration for Industry and Commerce, report to and complete the formalities for the change or cancellation of tax registration with the tax authorities on presentation of the relevant supporting documents.

Article 11 Taxpayers shall use tax registration certificates in accordance with the rulings 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 12 Taxpayers engaged in production or business operations or withholding agents shall establish accounting books in accordance with the rulings formulated by the authorized fiscal or tax department under the State Council, keep records based on legitimate and valid vouchers and conduct accounting. Individual households, engaged in industry and commerce which are indeed unable to keep accounting books may keep no accounting books after approval by the tax authorities.

Article 13 The financial and accounting systems or methods of a taxpayer engaged in production or business operations shall be submitted to the tax authorities for their records.
Where the financial and accounting systems or methods of a taxpayer engaged in production or business operations are contradictory to the relevant tax rules formulated by the State Council or the authorized fiscal or tax departments under the State Council, the calculation and payment of tax shall be conducted in accordance with the relevant tax rules formulated by the State Council or the authorized fiscal or tax departments under the State Council.

Article 14 The special value-added tax invoices shall be printed by enterprises designated by the competent tax department under the State Council; and other invoice shall, according to provisions of the competent tax department thereunder, be printed by the enterprises designated by state tax officers or local taxation bureaus of provinces, autonomous regions and municipalities directly under the Central Government.
No enterprises are permitted to print invoices without authorization by the afore-stated competent tax departments. 
The measures regarding the administration of invoices shall be formulated by the State Council.

Article 15 Taxpayers engaged in production or business operations or withholding agents must maintain accounting books, supporting vouchers for the accounts, tax payment receipts and other relevant information within the period prescribed by the authorized 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 approval.

Section 3 Filing Tax Returns

Article 16 Taxpayers must fulfill tax filing requirements, submit tax returns, financial and accounting statements as well as the relevant information on tax payments required by the tax authorities based on practical needs within the time limit for tax reporting prescribed in the law or the administrative regulations, or as determined by the tax authorities in accordance with the law or the administrative regulations.
Withholding agents must submit reporting schedules on taxes withheld and remitted or collected and remitted as well as other relevant information required by the tax authorities to be submitted by the withholding agents based on practical needs within the time limit for tax reporting prescribed in the law or the administrative regulations, or as determined by the tax authorities in accordance with the law or the administrative regulations.

Article 17 Where a taxpayer or withholding agent is unable to file tax returns or to submit reporting schedules on the tax withheld and remitted or collected and remitted within the prescribed time limit, it may, upon examination and approval by the tax authorities, extend the time to file the tax returns or submit the reporting schedules.

Chapter III Tax Collection

Article 18 The tax authorities shall collect tax in accordance with the law or the administrative regulations.
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