Opinions of the State Administration of Taxation on Strengthening the Collaboration between the National Taxation Bureaus and Local Taxation Bureaus

Opinions of the State Administration of Taxation on Strengthening the Collaboration between the National Taxation Bureaus and Local Taxation Bureaus

Guo Shui Fa [2004] No. 4

January 7, 2004

The offices of the State Administration of Taxation and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities under specifically designated in the state plan and all entities directly under the State Administration of Taxation:

With a view to strengthen tax collection and administration, plug up loopholes and facilitate taxpayers, it is hereby put forward the following opinions on strengthening the collaboration and cooperation between national taxation bureaus and local taxation bureaus:

Article 1 To fully recognize the necessity and feasibility of strengthening collaboration
The Third Plenary Session of the Sixteenth Central Committee of the Communist Party of China expressly put forward that "the social administration and public service functions of government shall be improved", which gives direction for taxation departments to update conception, transform functions and establish a taxation administrative system characterized with standardized acts, coordinated operation, impartiality and transparency and resistance to corruption and high efficiency in the new development period, and puts forward new and higher requirements for taxation departments. National taxation bureaus and local taxation bureaus are important functional departments of the government, and the collaboration there between is an inherent requirement for the government to integrate administrative resources and improve administrative efficiency and an important way to transform functions and realize efficient administration. Strengthening the collaboration between national taxation bureaus and local taxation bureaus is of great significance to reinforce the taxation collection and administration, extend and develop service channels, unify service platform, decrease the cost for taxation collection and payment, optimize the services provided to taxpayers, thoroughly enhance the regulatory capacity and level of taxation authorities and build up and continuously improve the image of taxation departments. Though national taxation bureaus and local taxation bureaus are two independent administrative enforcement authorities with different working duties and scope of work, they jointly enforce in accordance with the integrated taxation laws and regulations, face joint taxpayers and have procedures for taxation collection and administration that are substantially the same. Collaboration and cooperation between national taxation bureaus and local taxation bureaus are more direct, convenient and efficient as well as closer in comparison with their collaboration and cooperation with other entities. Therefore, the national taxation bureaus and local taxation bureaus must pay high attention to, elaborately organize and guide and spend joint efforts to strengthen the collaboration between national taxation bureaus and local taxation bureaus to produce actual effect and results.

Article 2 The main content of collaboration to be strengthened
1. To periodically exchange data
(1) Registered residence data of taxpayers
National taxation bureaus and local taxation bureaus shall periodically exchange the number registered units, altered units, relocated units, cancelled units and others information by means of floppy disk and Internet. Areas under the pilot project for sharing enterprise fundamental information organized by four departments of the State Council such as its Information Office (Guo Xin Ban [2003] No.47) and other areas where conditions permit may conduct networking between national taxation bureaus and local taxation bureaus or via the platform of enterprise fundamental information established by local governments to realize real-time exchange of registration information between national taxation bureaus and local taxation bureaus.
(2) Freight transport invoice data
In accordance with the provisions of the Circular of the State Administration of Taxation on Strengthening the Taxation and Collection Administration over Freight Transport Industry (Guo Shui Fa [2003] No.121), national taxation bureaus and local taxation bureaus shall do a good job in collaboration and cooperation to ensure timely and accurate transfer of data in order to strengthen supervision on cargo transport invoice, enhance administration on business tax and regulate value-added tax deduction and credit.
(3) Data of "Two Taxes", the tax base for the urban maintenance and construction tax
a.
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