Administrative Measures for the Regular and Fixed-sum Tax Imposition on Individually Owned Stores

Administrative Measures for the Regular and Fixed-sum Tax Imposition on Individually Owned Stores

Order of the State Administration of Taxation [2006] No. 16

August 30, 2006

The Administrative Measures for the Regular and Fixed-sum Tax Imposition on Individually Owned Stores were adopted at the second executive meeting on June 28, 2006 and are hereby issued to you. They shall be implemented as of January 1, 2007.

Director-general of the State Administration of Taxation: Xie Xüren

Annex: Administrative Measures for the Regular and Fixed-sum Tax Imposition on Individually Owned Stores
　
Article 1 With the primary aims of standardizing and strengthening the management of the regular and fixed-sum tax imposition of individual industrial and commercial households (hereinafter referred to as regular contribution collection), create fair tax shares, and protect the legitimate rights and interests of individual industrial and commercial households as well as to promote the healthy development of the individual economy, we have promulgated these Measures in accordance with the Law of the People's Republic of China on the Administration of Tax Levying and its detailed rules for implementation.
　
Article 2 The phrase 'regular and fixed-sum tax imposition for Individually owned stores' as used in these Measures shall refer to the tax authorities, in accordance with the law, administrative regulations and the provisions of these Measures to audit the taxable turnover (including amount of business) or amount of income (hereinafter referred to as contribution amount) of an individual industrial and commercial household in a certain place of business, and a certain period of operation within a certain scope to be used as a reference for tax accounting to determine the amount of tax that shall be paid.
　
Article 3 These Measures shall be applicable to the tax collection and management of individual industrial and commercial households (hereinafter referred to as regular contribution accounts) which are of a small business scale, approved by the responsible tax authorities and the tax authorities above the county level (including county level, below is the same) who cannot meet the standards of provision for account establishment as outlined in the Tentative Measures of Accounts Establishing Management of Individual Industrial and Commercial Households.
　
Article 4 The tax authorities shall be responsible for organizing examinations and ratifying the contribution amount.
The state administration of taxation and local tax bureaus shall examine and ratify the contribution amount of taxes within their jurisdiction in accordance with the collection scope established by the State Council.
The state administration of taxation and local tax bureaus must strengthen their coordination and cooperation to jointly formulate contact systems to guarantee that the information channels are free.
　
Article 5 The responsible tax authorities shall classify the households of regular contribution, choose a certain number of regular contribution representative households with an industry and region during the year, carry out a standard investigation of their operation and income situation, make an analysis, and fill out the relevant forms.
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