Law of the People's Republic of China on the Administration of Tax Levying (Amended in 2013)

Law of the People's Republic of China on the Administration of Tax Levying (Amended in 2013)

Order of the President [2013] No.5

June 29, 2013

(Adopted on September 4, 1992 at the 27th Session of the Standing Committee of the Seventh National People's Congress; amended for the first time pursuant to the Decision on Revising the Law of the People's Republic of China on the Administration of Tax Levying of the 12th Session of the Standing Committee of the Eighth National People's Congress on February 28, 1995; revised at the 21st Session of the Standing Committee of the Ninth National People's Congress on April 28, 2001; and amended for the second time according to Decision of the Standing Committee of the National People's Congress on Amending 12 Laws including the Cultural Relics Protection Law of the People's Republic of China at the 3rd Meeting of the Standing Committee of the 12th National People's Congress on June 29, 2013)

Chapter I General Provisions
Chapter II Tax Administration
Section 1 Tax Registration
Section 2 Administration of Accounting Books and Supporting Vouchers
Section 3 Filing Tax Returns
Chapter III Tax Levying
Chapter IV Tax Inspection
Chapter V Legal Liabilities
Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1 The Law of the People's Republic of China on the Administration of Tax Levying (Revised in 2001) (hereinafter referred to as the "Law") has been enacted with a view to strengthening the administration of tax levying, regulating tax levying and payment behavior, safeguarding the tax revenue of the State, safeguarding the legitimate rights and interests of taxpayers and promoting economic and social development.

Article 2 The Law shall apply to the administration of tax levying in respect of all taxes levied by the tax authorities in accordance with the law.

Article 3 The levying of taxes or the cessation thereof, the reduction, exemption and refund of taxes as well as the payment of taxes underpaid shall be implemented in accordance with laws 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, in violation of laws and administrative regulations, make decisions without authorization regarding the levying of taxes, or the cessation thereof, the reduction, exemption or refund of taxes, or the payment of taxes underpaid, and other decisions in conflict with tax laws and administrative regulations.

Article 4 Entities or individuals which are obligated to pay taxes in accordance with laws and administrative regulations are taxpayers.
Entities or individuals which are obligated to withhold and remit taxes or levy and remit taxes in accordance with laws and administrative regulations are withholding agents.
Taxpayers or withholding agents must pay taxes, or withhold and remit taxes or levy and remit taxes in accordance with laws and administrative regulations.

Article 5 The competent tax departments under the State Council shall be in charge of the administration of tax levying for the whole country. The offices of the State Administration of Taxation and the local taxation bureaus in all localities shall carry out the administration of tax levying within the scope of the administration of tax levying laid down by the State Council.
The local people's governments at various levels shall, in accordance with the law, strengthen their leadership or coordination in the administration of tax levying within their jurisdictions and support the tax authorities in carrying out their duties, computing payable taxes at the statutory tax rates and levying taxes in accordance with the law.
The various relevant departments and entities 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 in carrying out their duties in accordance with the law.

Article 6 The State shall, in a planned manner, equip tax authorities at all levels with modern information technology, strengthen the modernization of the information system for administration of tax levying, and establish and improve the information-sharing system between tax authorities and other administrative departments of the government.
Taxpayers, withholding agents and other entities concerned shall submit authentic information about tax payments, the withholding and remittance of taxes, and the levying and remittance of taxes to tax authorities in accordance with the relevant provisions of the State.

Article 7 Tax authorities shall widely publicize laws and administrative regulations on taxation, popularize tax knowledge, and provide taxpayers with free consultation services on taxation.

Article 8 Taxpayers and withholding agents shall have the right to learn from tax authorities about the provisions of laws and administrative regulations on taxation of the State and tax payment procedures.
Taxpayers and withholding agents are entitled to request tax authorities to keep all matters relating to the taxpayers and withholding agents confidential. Tax authorities shall not make the taxpayers and withholding agents available in accordance with the law.
Taxpayers enjoy the right to apply for reduction, exemption or refund of taxes according to law.
Taxpayers and withholding agents enjoy the right of audience and the right of petition on the decisions of tax authorities, and enjoy such rights according to law as applying for administrative reconsideration, initiating administrative litigation or requesting for State compensation.
Taxpayers and withholding agents are entitled to file an accusation or report against tax authorities or tax officials in respect of their illegal or irregular acts.

Article 9 Tax authorities shall reinforce the establishment of tax teams and improve the quality of tax officials in respect of governmental operations.
Tax authorities and tax officials must enforce the law impartially and devote themselves to their duties. They shall be honest, polite and civilized, respect and protect the rights of taxpayers and withholding agents and accept monitoring in accordance with the law.
The tax officials shall not extort or take bribes, practice favoritism, commit malpractice, neglect their duties, or fail to levy or under-levy payable taxes, nor shall they abuse their powers to over-levy tax or deliberately create difficulties for taxpayers and withholding agents.

Article 10 Tax authorities at all levels shall establish and improve their systems of internal restriction, supervision and management.
Tax authorities at the higher level shall supervise the law enforcement activities of tax authorities at the lower level according to law.
Tax authorities at all levels shall supervise and inspect the enforcement of laws, administrative regulations and rules of self-discipline and honesty by their officials.

Article 11 The duties of officials in charge of collection, administration, auditing and administrative reconsideration of tax authorities shall be defined clearly, and shall be mutually separated and mutually restricting.

Article 12 Tax officials shall withdraw from tax levying and investigation of tax-related violation cases if they have an interested relation with the taxpayers, withholding agents or in the cases.

Article 13 Any entity or individual shall have the right to report any acts committed in violation of tax laws and administrative regulations. The authority receiving such reports, or responsible for investigation, shall not make the informants available. The tax authorities shall grant the informants rewards in accordance with the relevant provisions.

Article 14 For the purpose of the Law, tax authorities refer to the tax bureaus at various levels and their sub-bureaus, tax stations and the tax organizations set up according to the provisions of the State Council and announced to the public.

Chapter II Tax Administration

Section 1 Tax Registration

Article 15 Enterprises, branches or premises for production and operation of the enterprise set up in other places, individual industrial and commercial households and institutions engaged in production and operation (hereinafter referred to as "taxpayers engaged in production and operation") shall, within thirty days from the date of receipt of business licenses, declare and apply to the tax authorities for tax registration by holding the relevant credentials. A tax authority shall, on the date of receipt of the application, complete the registration and issue a tax registration certificate.
The authorities for the administration of industry and commerce shall provide tax authorities with information about business license registrations, examination and issuances regularly.
The scope and methods of tax registration for taxpayers and of tax withholding registration for withholding agents, other than those prescribed in Paragraph 1 of this Article, shall be formulated by the State Council.

Article 16 Where a change occurs in the contents of the tax registration of a taxpayer engaging in production or business operations, the taxpayer concerned shall, within 30 days of the date of completing the formalities for such change in the business registration with the authorities for the administration of industry and commerce or prior to the submission of an application for cancellation of business registration to the authorities for the administration of industry and commerce, report to and complete the formalities for the change or cancellation of tax registration with the tax authorities upon presentation of the relevant supporting documents.

Article 17 Taxpayers engaging in production or business operations shall, in accordance with the relevant provisions of the State and by presenting their certificate of tax registration, open basic deposit accounts and other deposit accounts with banks or other financial institutions, and report all of their account numbers to tax authorities.
Banks and other financial institutions shall log the numbers of certificates of tax registration into the accounts of taxpayers engaging in production or business operations, and the account numbers of taxpayers engaging in production or business operations into their certificates of tax registration.
When tax authorities inquire about the accounts of taxpayers engaging in production or business operations according to law, banks and other financial institutions concerned shall render assistance.

Article 18 Taxpayers shall use tax registration certificates in accordance with the provisions 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 19 Taxpayers and withholding agents shall establish accounting books in accordance with the relevant laws, administrative regulations, and provisions formulated by the authorized fiscal or tax department under the State Council and keep records and carry out accounting based on legitimate and valid vouchers.

Article 20 The taxpayers engaging in production or business operations shall submit their financial and accounting systems or methods and accounting software to the tax authorities for record.
Where the financial and accounting systems or methods of taxpayers and withholding agents conflict with the relevant tax provisions formulated by the State Council or the authorized fiscal or tax departments under the State Council, the tax amount to be paid, withheld and remitted, or levied and remitted shall be computed in accordance with the relevant tax provisions formulated by the State Council or the authorized fiscal or tax departments under the State Council.

Article 21 Tax authorities are the competent departments in charge of invoices and are responsible for the administration and supervision of the printing, acquiring, issuance, obtaining, safekeeping, recovering and destruction of invoices.
In purchasing and selling commodities, providing and accepting services or engaging in other business activities, entities and individuals shall issue, use and obtain invoices according to provisions.
The State Council shall formulate the measures for the administration of invoices.

Article 22 Value-added tax invoices must be printed by enterprises designated by the competent tax departments under the State Council.
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