Circular of the State Administration of Taxation on Printing and Distributing the Administrative Measures on Financial Statements submission by Taxpayers

Circular of the State Administration of Taxation on Printing and Distributing the Administrative Measures on Financial Statements submission by Taxpayers

Guo Shui Fa [2005] No.20

March 1, 2005

To the state taxation bureaus and local taxation bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specificlly designated in the state plan, Yangzhou Tax Institute and all units under the State Administration of Taxation:

The Administrative Measures on Taxpayer Submitting Financial Statements (hereinafter referred to as the Measures, see attachment I) are hereby printed and distributed to you, and the relevant issues are clarified as follows:

Article 1 Understand the significance and vigorously implement the standards. In view of the long-standing abuse that the tax authorities have long required taxpayers to submit too many and excessive materials, the State Administration of Taxation has started cleaning up ever since last year and efforts have been made to gradually solve the problem of taxpaters' repeated submission of tax-related materials. The current standardization of administration on taxpayers' submitting financial statementis is the first step made to relieve taxpayers' burden, which is not only favorable to improve and optimize the taxation service, but also helpful for the tax authorities to standardardize their fundamental work and gradually realize sharing of information submitted by taxpayers inside the taxation authorities. The tax authorities at various levels must pay high attention hereto, vigoriously implement and carry out the various provisions of the Measures, conscientiously clean up the various tax-related materials repeatedly submitted by taxpayers as they required and make efforts to have the issue concerning "repeated submitting and repeated collecting" of information improved obviously in the near future.

Article 2 Consolidate submission and share information. From now on, for all the financial statements that are required to be submitted by taxpayers as specified by the laws, administrative regulations and the regulations of the State Administration of Taxation (see document numbers in attachment II), the submitting method of consolidated submission as specified by the Measures shall replace for the separate submission on subdivided tax categories i.e., the taxpayers of the same statement will only make one submission in accordance with the provisions in principle, which shall be uniformly collected and inputed into the information system by the tax authorities and managed in accordance with the requirements of "one household" record. Presently, in addition to the financial statements, the various provinces and cities also require taxpayers to submit the same type of statements. Wherever the data of the financial statements can meet the needs of the work, all such submission shall be canceled. Wherever there is any partial repetition with the data of the financial statements, the contents of such statements shall be revised immdiately and re-issued to avoid repeated submission. Those which are obviously special needs of taxation administration while the the data of the financial statements cannot meet such needs, they may be otherwise provided by the taxpayers as determined by the tax authorties at the county level. Meanwhile, for all the data of the financial statements as submitted by the taxpayers of "one household" record, the tax authorities at various levels shall, based on the working responsiblities and using requiremnts of the various departments, determine their authorities and use them under authorization. Information shall be shared and the coordination between the various departments shall be strengthened, the fundamental work shall be carried out carefully and throughly to avoid "vaccum" in administration.

Article 3 Make efforts to keep the documents synchronous with the software. All revision of software concerned in these Measures shall be completed before the Measures' coming into force as of May 1, 2005 to make sure the synchronous implemention of the documents and the software. The documents concerning revision of statements as distributed by the State Administration of Taxation hereafter shall be implemented synchronously when the service operating process and the service and technology standards are determined as well as the revision of the corresponding application software(including the statement submitting software used by the taxpayers and the statement accepting software used by the tax authorities) are completed so as to make it convenient for taxpayers and primary tax authorities to operate. Where the service of the tax authorities under the provincial level changes and such change involves software revision, it shall also be handled in accordance with this principle.
As for the statement submitting software used by taxpayers, which ever is orgnaized and developed by the tax authorities shall be revised and maintained by the tax authorities; which is developed commercially shall, in accordance with the service and technology standards and the requirements of the using time, be revised and maintained by the developer of such software and provided to taxpayers for using.
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