Announcement of the State Taxation Administration on Matters Relating to Taxpaying Credit Administration
Announcement of the State Taxation Administration on Matters Relating to Taxpaying Credit Administration
Announcement of the State Taxation Administration on Matters Relating to Taxpaying Credit Administration
Announcement of the State Taxation Administration [2020] No.15
September 13, 2020
With a view to thoroughly implementing the guiding principle of the State Council on the reform of streamlining administration and delegating power, improving regulation and upgrading services, optimizing the taxation-oriented business environment and refining the taxpaying credit system, in accordance with the Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Collection and the Circular of the State Council on Issuing the Planning Outline for the Construction of a Social Credit System (2014-2020) (Guo Fa [2014] No.21), the relevant matters on taxpaying credit administration are hereby announced as follows:
I. Non-independent accounting branches may voluntarily participate in taxpaying credit evaluation. For the purpose of this Announcement, the term "non-independent accounting branch" refers to a branch which is established by a corporate taxpayer and has completed the confirmation of its registration information at the competent tax authority with non-independent accounting as its accounting mode.
After a non-independent accounting branch participates in evaluation, its taxpaying credit rating prior to 2019 shall no longer be subject to evaluation, and the relevant provisions of the State Taxation Administration on taxpaying credit administration shall apply during the existence of the branch.
II. From the time when the evaluation for 2020 is conducted, the starting score rules in the taxpaying credit evaluation and scoring methods shall be adjusted. Where there is non-recurrent index information in the recent three evaluation years, the rating starts from 100 points; or otherwise, the rating starts from 90 points.
III. From the time when the evaluation for 2019 is conducted, the measures for credit administration of Grade D taxpayers taken by tax authorities shall be adjusted. A taxpayer rated as Grade D as a result of its evaluation index score shall be subject to adjustment from direct retention of Grade D evaluation to additional deduction of 11 points for evaluation in the following year; and the competent tax authority should, in accordance with the foregoing provisions of this article, adjust the taxpaying credit rating of the said taxpayers for 2019 prior to November 30, 2020, without making any retroactive adjustment to the taxpaying credit rating prior to 2019. Taxpayers being rated as Grade D as a result of direct determination shall be subject to retention of Grade D evaluation for two years and may not be rated as Grade A for the third year.
IV. A taxpayer having any objection to the index evaluation may fill out the Taxpaying Credit Re-evaluation (Recheck) Application Form in March of the year following the evaluation year and file an application for recheck with the competent tax authority, which shall, when carrying out the annual evaluation, conduct audit for adjustment, and provide the taxpayer with the service of self-inquiry about the recheck along with the evaluation results.
V. This Announcement shall come into effect as of November 1, 2020. Paragraph 2 of Article 15, Item 7 of Article 32 of the Measures for Taxpaying Credit Administration (for Trial Implementation) (Announcement of the State Taxation Administration [2014] No.40), Paragraph 1 of Article 3, Item 1 of Article 7 of the Announcement of the State Taxation Administration on Clarifying the Standards for Several Business in Relation to Taxpaying Credit Administration ([2015] No.85, amended as [2018] No.31), and the Taxpaying Credit Re-evaluation Application Form attached to the Announcement of the State Taxation Administration on Clarifying Matters concerning Supplementary Evaluation and Re-evaluation of Taxpaying Credit ([2015] No.46, amended as [2018] No.31) shall be repealed simultaneously.
This Announcement is hereby given.
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Announcement of the State Taxation Administration [2020] No.15
September 13, 2020
With a view to thoroughly implementing the guiding principle of the State Council on the reform of streamlining administration and delegating power, improving regulation and upgrading services, optimizing the taxation-oriented business environment and refining the taxpaying credit system, in accordance with the Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Collection and the Circular of the State Council on Issuing the Planning Outline for the Construction of a Social Credit System (2014-2020) (Guo Fa [2014] No.21), the relevant matters on taxpaying credit administration are hereby announced as follows:
I. Non-independent accounting branches may voluntarily participate in taxpaying credit evaluation. For the purpose of this Announcement, the term "non-independent accounting branch" refers to a branch which is established by a corporate taxpayer and has completed the confirmation of its registration information at the competent tax authority with non-independent accounting as its accounting mode.
After a non-independent accounting branch participates in evaluation, its taxpaying credit rating prior to 2019 shall no longer be subject to evaluation, and the relevant provisions of the State Taxation Administration on taxpaying credit administration shall apply during the existence of the branch.
II. From the time when the evaluation for 2020 is conducted, the starting score rules in the taxpaying credit evaluation and scoring methods shall be adjusted. Where there is non-recurrent index information in the recent three evaluation years, the rating starts from 100 points; or otherwise, the rating starts from 90 points.
III. From the time when the evaluation for 2019 is conducted, the measures for credit administration of Grade D taxpayers taken by tax authorities shall be adjusted. A taxpayer rated as Grade D as a result of its evaluation index score shall be subject to adjustment from direct retention of Grade D evaluation to additional deduction of 11 points for evaluation in the following year; and the competent tax authority should, in accordance with the foregoing provisions of this article, adjust the taxpaying credit rating of the said taxpayers for 2019 prior to November 30, 2020, without making any retroactive adjustment to the taxpaying credit rating prior to 2019. Taxpayers being rated as Grade D as a result of direct determination shall be subject to retention of Grade D evaluation for two years and may not be rated as Grade A for the third year.
IV. A taxpayer having any objection to the index evaluation may fill out the Taxpaying Credit Re-evaluation (Recheck) Application Form in March of the year following the evaluation year and file an application for recheck with the competent tax authority, which shall, when carrying out the annual evaluation, conduct audit for adjustment, and provide the taxpayer with the service of self-inquiry about the recheck along with the evaluation results.
V. This Announcement shall come into effect as of November 1, 2020. Paragraph 2 of Article 15, Item 7 of Article 32 of the Measures for Taxpaying Credit Administration (for Trial Implementation) (Announcement of the State Taxation Administration [2014] No.40), Paragraph 1 of Article 3, Item 1 of Article 7 of the Announcement of the State Taxation Administration on Clarifying the Standards for Several Business in Relation to Taxpaying Credit Administration ([2015] No.85, amended as [2018] No.31), and the Taxpaying Credit Re-evaluation Application Form attached to the Announcement of the State Taxation Administration on Clarifying Matters concerning Supplementary Evaluation and Re-evaluation of Taxpaying Credit ([2015] No.46, amended as [2018] No.31) shall be repealed simultaneously.
This Announcement is hereby given.
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