Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying
Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying
Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying
Order of the State Council [2002] No. 362
September 7, 2002
The Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying are hereby promulgated, and shall become effective as of October 15, 2002.
Premier Zhu Rongji
Annex: Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying
Chapter 1 General Provisions
Article 1 These Implementing Rules are formulated in accordance with the provisions of the Law of the People's Republic of China on the Administration of Tax Levying (hereinafter referred to as the Tax Administration Law).
Article 2 The Tax Administration Law and these Implementing Rules are applicable to the administration of tax levying in respect of all taxes collected by the tax authorities in accordance with tax laws. Where there are no relevant provisions in the Tax Administration Law or these Implementing Rules, the provisions of other relevant tax laws and administrative regulations apply.
Article 3 Any decision that is made by any department, unit or individual in contrary to tax laws, administrative regulations and rules is invalid and the tax authorities shall not implement those decisions and shall report the decisions to the tax authorities at higher levels.
Taxpayers shall perform tax obligations in compliance with tax laws and administrative regulations and rules. The contracts, agreements signed in contradiction to tax laws and administrative regulations and rules shall be invalid.
Article 4 The State Administration of Taxation (hereinafter referred to as the "SAT") is responsible for formulating the nation-wide overall plans, technical standards, technical plans and implementation methods of the tax information system construction. The tax departments at various levels shall properly carry out the local construction of the tax information system in line with the nation-wide overall plans, technical standards, technical plans and implementation methods formulated by the SAT.
The local People's Governments at various levels shall positively support the tax information system construction and organize to realize information sharing between the relevant departments.
Article 5 The secrecies that shall be kept for the taxpayers and withholding agents as mentioned in Article 8 of the Tax Administration Law refer to the trade secrets and privacy of the taxpayers and withholding agents. The tax offences of the taxpayers and the withholding agents are not within the scope of the secrecy keeping.
Article 6 The SAT shall formulate the code of conducts and service standards for the tax staff.
When discovering offences of the tax authorities at lower levels, the upper level tax authorities shall timely rectify them. The lower tax authorities shall make timely corrections in accordance with the decision of the tax authorities above.
When discovering tax offences of tax authorities at a higher level, the tax authorities finding that offences shall report to the tax authorities above or the relevant departments.
Article 7 The tax authorities shall prize the informants upon their contribution. The fund for the prize shall be included in the annual budget of the tax department for separate accounting. The specific method and standards for the prize shall be made by the SAT together with the Ministry of Finance.
Article 8 When assessing the tax payable, adjusting the pre-assumptive tax amount, conducting tax inspection, imposing tax penalty or handling tax administrative review, the tax staff shall withdraw from the case when having one of the following relationships with the taxpayers, withholding agents or their legal representatives, directly responsible persons:
1.Husband and wife;
2. Direct blood relatives;
3. Indirect blood relatives within three generations;
4. Close relatives through marriage; and
5. Other relations that may influence the impartial execution of laws.
Article 9 For the purposes of Article 14 of the Law on the Administration of Tax Levying, the tax authorities that are established in accordance with the provisions of the State Council and are announced to the public refer to the tax investigation departments at and below provincial level. The tax investigation departments are exclusively in charge of the investigation and dealing of tax evasion, tax arrears, cheating of tax and tax refusal cases.
The SAT shall clearly define the functions of the tax offices and the tax investigation departments to avoid overlapping of functions.
Chapter 2 Tax Registration
Article 10 The SAT offices and the local tax bureaus shall adopt the same code for the same taxpayer and share the information.
The specific method for tax registration shall be formulated by the SAT.
Article 11 The Industrial and Commercial Administration Departments at various levels shall regularly inform the SAT offices and the local tax bureaus at the same level of the registration of opening business or change, de-registration and the revocation of business licenses.
The specific measures for informing shall be formulated jointly by the SAT and the State Industrial and Commercial Administration.
Article 12 The taxpayers engaged in production or business operations shall file a written application for tax registration with the competent tax authorities at the location of production or business operation or where the tax obligation arises within 30 days after obtaining the business license. The taxpayers shall truthfully fill in the tax registration form and provide the relevant documents, materials as required by the tax authorities.
The taxpayers rather than the above, except for the State organs and individuals, shall, within 30 days after the date of tax obligation arising, bring the relevant documents to the local competent tax authorities for tax registration.
The measures for Individual Income Tax registration shall be formulated by the State Council separately.
The formats of the tax registration certificate shall be formulated by the SAT.
Article 13 The withholding agents shall, within 30 days after the date when withholding obligation arises, apply to the local competent tax authorities for withholding registration, and obtain the withholding registration certificate. For the withholding agents who have already completed tax registration, the tax authorities may only record the tax withholding items in the tax registration certificate and shall not issue the withholding registration certificate.
Article 14 Where a change occurs in the contents of tax registration, the taxpayer concerned shall, within 30 days after the date of completing the formalities for such change of registration with the Administration for Industry and Commerce or other departments, report to and complete the formalities for change of tax registration with the original tax authorities by presenting the relevant supporting documents.
Where taxpayer's tax registration contents change but there is no need to change the registration with the Administration for Industry and Commerce or other departments, the taxpayer shall, within 30 days after the change, apply to the original tax authorities for changing the tax registration by presenting the relevant documents.
Article 15 If a taxpayer is involved in dissolution, bankruptcy, cancellation or other circumstances, thus terminating its tax payment obligations pursuant to the law, the taxpayer shall, before cancelling its registration with the Administration for Industry and Commerce or other departments, present the relevant documents to the original tax authorities to apply for cancellation of its tax registration. If, in accordance with regulations, the taxpayer is not required to cancel its registration with the Administration for Industry and Commerce or other departments, the taxpayer shall, within 15 days after the relevant organ approving or announcing the termination, present the relevant documents to the original tax authorities to apply for cancellation of its tax registration.
If a change in a taxpayer's address of residence or address of business operations causes an alteration of the tax authority for its tax registration, the taxpayer shall, before applying to the Administration for Industry and Commerce or other departments to change or cancel its registration and before changing its address of residence or address of business operations, apply to the original tax authority for cancellation of its tax registration and shall apply to relevant tax authority at the place of relocation for tax registration within 30 days.
A taxpayer whose business license is revoked by the Administration for Industry and Commerce or whose registration is cancelled by other departments shall, within 15 days of the revocation of its business license or cancellation of its registration, apply to the original tax authority for cancellation of its tax registration.
Article 16 Before carrying out procedures to cancel its tax registration, a taxpayer shall settle all taxes payable, late payment penalties and other fines and shall turn over invoices, tax registration certificates and other tax documents to the tax authorities.
Article 17 Taxpayers engaged in production or business operation shall report to the competent tax authorities in writing all of their account numbers within 15 days after opening the basic deposit accounts or other deposit accounts. In case of change, the taxpayers shall report in writing to the competent tax authorities about the change within 15 days after the change.
Article 18 Except where a tax registration certificate is not required be issued in accordance with regulations, a taxpayer must present a tax registration certificate when carrying out the following matters:
1.Opening bank accounts;
2. Applying for a tax reduction, exemption or refund;
3. Applying for a deferred tax report or tax payment;
4. Purchasing invoices;
5. Applying for the issuance of a certificate of tax administration for outbound business operations;
6. Handling business termination or business close; and
7. Other relevant tax matters.
Article 19 The tax authorities shall implement a regular certificate inspection and replacement system for tax registration certificates. A taxpayer shall, by presenting the relevant documents, complete the certificate inspection or replacement procedures with the competent tax authorities within the prescribed time limit.
Article 20 Taxpayers shall openly hang the tax registration certificates at the premises of their production, business operation or offices for the inspection of the tax authorities.
In case of losing the tax registration certificate, the taxpayer shall report in writing to the competent tax authorities and announce in paper the invalidity of the certificate.
Article 21 A taxpayer engaged in production or business operations who wants to temporarily undertake production or business activities in another county (city) must, by presenting the duplicate of the tax registration certificate and the certificate for tax administration of outbound business operations issued by the local tax authority, complete the inspection and registration with, and be subject to the tax administration of, the tax authority in the county (city).
Where a taxpayer who engages in production or business operation carries out outbound business operation for more than 180 days accumulatively in the same place, the taxpayer shall go through the tax registration formalities at the place of the business operation.
Chapter 3 Administration of Accounting Books and Supporting Vouchers
Article 22 A taxpayer engaged in production or business operations shall, in accordance with the relevant rules of the State, establish accounting books within 15 days after the date of obtaining its business license or after the day of tax obligation arises.
The term "accounting books" as stated in the previous paragraph refers to general ledgers, detailed accounts, journals and other auxiliary accounting books.
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