Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Levying (Revised in 2016) 

Order of the State Council No. 666

Feburary 6, 2016

(Promulgated by Order of the State Council of the People's Republic of China No.362 on September 7, 2002; and revised in accordance with the Decision of the State Council on Revising and Repealing Certain Administrative Regulations made on November 9, 2012; revised further according to the Decision of the State Council on Abolishing and Revising Some Administrative Laws and Regulations on July 18, 2013; Revised for the thrid time according to the Decision of the State Council on Revising Certain Administrative Regulations on Feburary 6, 2016)

Chapter I General Provisions

Article 1 These 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 as the "Law on the Administration of Tax Levying").

Article 2 The administration of tax levying with regard to all kinds of taxes that are levied by the tax authorities in accordance with the law is subject to the Law on the Administration of Tax Levying and These Rules or, where there are no relevant provisions in the Law on the Administration of Tax Levying and these Rules, the provisions of other relevant tax laws and administrative regulations.

Article 3 Where any decisions that are made by any departments, entities and individuals are in conflict with the tax laws and administrative regulations, they shall be all invalid, and the tax authorities shall not implement such decisions and shall report the decisions to the tax authorities at higher levels.
The taxpayers shall perform the tax liabilities in accordance with the provisions of tax laws and administrative regulations; where any contracts or agreements that are signed by taxpayers are in conflict with the tax laws and administrative regulations, such contracts and agreements shall be all invalid.

Article 4 The State Administration of Taxation (hereinafter referred to as the "SAT") shall be responsible for formulating the overall plans, technical standards, technical plans and implementation measures with regard to the informationization construction of national tax system. The tax authorities at all levels shall properly handle the specific works with regard to the local informationization construction of tax systems in accordance with the overall plans, technical standards, technical plans and implementation measures of the SAT.
The local people's governments at all levels shall actively support the informationization construction of tax systems and organize the share of relevant information by the relevant departments.

Article 5 The secrecies that shall be kept for the taxpayers and withholding agents as mentioned in Article 8 of the Law on the Administration of Tax Levying refer to the trade secrets and privacy of the taxpayers and withholding agents. The tax-related illegal acts of taxpayers and withholding agents are not included in the scope of confidentiality.

Article 6 The SAT shall formulate the code of conducts and service standards for the tax officials.
The tax authorities at higher levels shall promptly rectify the tax-related illegal acts of the tax authorities at lower levels when they find such acts; the tax authorities at lower levels shall correct such acts promptly in accordance with the decisions of the tax authorities at higher levels.
When finding the tax-related illegal acts of the tax authorities at higher levels, the tax authorities at lower levels shall report such illegal acts to the tax authorities at higher levels or the relevant departments.

Article 7 The tax authorities shall give the relevant awards to the informants in accordance with their contributions, and the funds for awards shall be included in the annual budgets of the tax departments and be checked and ratified separately. The actual measures and standards for awards shall be formulated by the SAT together with the Ministry of Finance.

Article 8 Where a tax official has any of the following relationships with a taxpayer or withholding agent or its legal representative or directly responsible person when checking and ratifying the amount of payable tax, adjusting the pre-assumptive amount of tax, conducting the inspection on tax, implementing the administrative penalty of tax or handling the administrative review of tax, he or she shall withdraw from such matters:
1. Matrimonial relationship;
2. Lineal descent;
3. Collateral descent within three generations;
4. Close relationship by marriage; and
5. Other interested relationships that may influence the impartial enforcement.

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 inspection departments of the tax bureaus at provincial level or below. The inspection departments are exclusively in charge of the investigation and treatment with regard to the cases involving tax evasion, evasion on the recovering of outstanding taxes, tax fraud and refusal to pay tax.
The SAT shall expressly define the functions between the tax bureaus and the inspection departments to avoid any intercross of functions.

Chapter II Tax Registration

Article 10 The state and local tax bureaus shall adopt a single code for a taxpayer and share the information.
The specific measures for tax registration shall be formulated by the SAT.

Article 11 The administrative authorities for industry and commerce at all levels shall regularly report registrations with regard to the opening of business, change and cancellation and the revocation of business licenses to the state tax bureaus and local tax bureaus at the same level.
The specific measures for such reporting shall be formulated jointly by the SAT and the State Administration for Industry and Commerce.

Article 12 The taxpayers that engage in production or operation shall apply to the competent tax authorities at their production or operation places or at the locality where the tax liabilities occur for the tax registration within 30 days after obtaining their business licenses, truthfully fill in the tax registration forms and provide the relevant documents and materials in accordance with the requirements of the tax authorities.
The taxpayers other than those mentioned in the preceding paragraph, except for the state organs and individuals, shall apply to the competent tax authorities at their location for the tax registrations by holding the relevant certificates within 30 days after the tax liabilities occur.
The measures for taxpayers to handle the tax registration with regard to individual income taxes shall be separately specified by the State Council.
The formats of the tax registration certificate shall be formulated by the SAT.

Article 13 The withholding agents shall, within 30 days from the day when the withholding liabilities occur, apply to the competent tax authorities at their location for withholding tax registration and obtain their withholding tax registration certificates; with regard to the withholding agents that have already completed the tax registrations, the tax authorities may only record the items of withholding tax in their tax registration certificates and shall not issue the certificates of withholding tax registration any more.

Article 14 Where any contents of tax registration change, the taxpayers shall apply to the original tax registration authorities for changing the tax registration by holding the relevant certificateswithin 30 days from the day when the administrative authorities for industry and commerce or other organs handle the tax registration with regard to such changes.
Where the contents of tax registration change but it is not necessary to change the tax registrations with the administrative authorities for industry and commerce or other organs, the taxpayer shall apply to the original tax registration authorities for changing the tax registration by holding the relevant certificates within 30 days after such changes occur.

Article 15 Where any taxpayers are involved in dissolution, bankruptcy, cancellation or other circumstances and thus their tax liabilities are terminated in accordance with the law, such taxpayers shall apply to the original tax registration authorities for the cancellations of tax registration by holding the relevant certificates before applying to the administrative authorities for industry and commerce or other organs for such cancellations; where it is not necessary to register such cancellations with the administrative authorities for industry and commerce or other organs in accordance with the regulations, the taxpayers shall apply to the original tax registration authorities for the cancellations of tax registration by holding the relevant certificates with 15 days after the relevant organs approve or announce the termination.
Where any taxpayers are involved to change their tax registration authorities due to the change of their addresses or operation places, they shall apply to the original tax registration authorities for the cancellations of tax registration before they apply to the administrative authorities for industry and commerce or other organs for such changes or cancellations of registration or before their addresses or operation places are changed, and they shall apply for registration to the tax authorities at the place to which they will move within 30 days.
Where the taxpayers' business licenses are revoked by the administrative authorities for industry and commerce or their registrations are cancelled by other organs, the taxpayers shall apply to the original tax registration authorities for the cancellations of tax registrations within 15 days from the day when the business licenses are revoked or the registrations are cancelled.

Article 16 The taxpayers shall settle the payable taxes, overdue fines and other fines and hand in the invoices, tax registration certificates and other tax certificates for cancellation before they complete the cancellations of tax registration to the tax authorities.

Article 17 The taxpayers that engage in production or operation shall report all of their account numbers to the competent tax authorities in written form within 15 days after they open the basic deposit accounts or other deposit accounts; where the account numbers change, the taxpayers shall report such change to the competent tax authorities in written form within 15 days from the day when such changes occur.

Article 18 The taxpayers shall complete the following matters with their tax registration certificates, except where tax registration certificates are not required be issued in accordance with the regulations:
1. Opening bank accounts;
2. Applying for the tax reduction, exemption or refund;
3. Applying for postponing the tax declaration or payment;
4. Purchasing invoices;
5. Applying for the issuance of certificates of tax administration for outbound operation activities;
6. Handling the termination or temporary closure of businesses; and
7. Other relevant tax matters.

Article 19 The tax authorities shall implement the systems of regular inspection and replacement with regard to the tax registration certificates. The taxpayers shall complete the procedures of inspection or replacement of their tax registration certificates within the prescribed time limit with the competent tax authorities.

Article 20 The taxpayers shall openly place the original tax registration certificates at their production and operation places or offices for the inspection of the tax authorities.
Where the taxpayers' tax registration certificates are lost, they shall report that to the competent tax authorities in written form within 15 days and declare the invalidation of these certificates in the newspapers.

Article 21 Where any taxpayers that engage in production and operation go to the other counties (cities) to engage in production and operation activities temporarily, they shall bring the copies of their tax registration certificates and the certificates of tax administration for outgoing operation activities that are issued by their local tax authorities to the tax authorities at the places of business for declaration, verification and registration and shall be subject to the tax administration.
Where the accumulated outgoing operation time at the same place exceeds 180 days, the taxpayers that engage in production and operation shall handle the procedures of tax registration at the places of business.

Chapter III Administration of Accounting Books and Vouchers

Article 22 The taxpayers that engage in production and operation shall establish the accounting books in accordance with the relevant regulations of the State within 15 days after they obtain the business licenses or their tax liabilities occur.
The accounting books as mentioned in the preceding paragraph refer to the general ledgers, detailed ledgers, journals and other auxiliary accounting books. The general ledgers and journals shall be in a bound form.

Article 23 Taxpayers whose production or operation size is small and who are truly incapable to establish accounting books may engage professional institutions or accounting personnel that are approved to act as accounting agents to establish the accounting books and handle accounting transactions on their behalf.

Article 24 The taxpayers that engage in production or operation shall submit their financial and accounting systems or financial and accounting methods to the competent tax authorities for putting on files within 15 days after they obtain the tax registration certificates.
Where the taxpayers use computers to keep accounts, they shall submit the accounting software, usage manuals and other relevant materials of computerized accounting systems to the competent tax authorities for putting on files before they use such systems.
The computerized accounting systems that are established by the taxpayers shall comply with the relevant regulations of the State and be able to keep correct and complete accounts for their incomes or earnings.

Article 25 The withholding agents shall separately establish the accounting books for the withheld and paid taxes as well as the collected and paid taxes in accordance with the categories of withheld or collected taxes within 10 days as of the day when the withholding liabilities that are specified by the tax laws and administrative regulations occur.

Article 26 Where the taxpayers or the withholding agents have sound accounting systems and can correctly and completely calculate their incomes, earnings, withheld and paid taxes or collected and paid taxes through computers, the complete written accounting records that are output by computers may be deemed as the accounting books.
Where the taxpayers or the withholding agents do not have sound accounting systems and cannot correctly and completely calculate their incomes, earnings or the withheld and paid taxes or the collected and paid taxes through computers, such taxpayers or withholding agents shall establish the general ledgers and other accounting books that are related to the tax payment, the withheld and paid taxes or the collected and paid taxes.

Article 27 The accounting books, accounting vouchers and statements shall be made in the Chinese language. In a national autonomous region, the accounting books, accounting vouchers and statements may be simultaneously made in an ethnic language that is commonly used in the region. With regard to the foreign investment enterprises and foreign enterprises, the accounting books, accounting vouchers and statements may be simultaneously made in the competent foreign language.

Article 28 The taxpayers shall install and use the tax control equipment in accordance with the requirements of tax authorities and submit the relevant data and materials in accordance with the regulations of tax authorities.
The administrative measures for the promotion and application of tax control equipment shall be separately formulated by the SAT and reported to the State Council for approval before the implementation thereof.

Article 29 The accounting books, accounting vouchers, statements, receipts of tax payments, invoices, vouchers for exportation and other tax-related materials shall be legal, authentic and complete.
The accounting books, accounting vouchers, statements, receipts of tax payments, invoices, vouchers for exportation and other tax-related materials shall be kept for 10 years, unless otherwise specified in the laws and administrative regulations.

Chapter IV Tax Declaration

Article 30 The tax authorities shall establish and improve the systems for self-declaration of taxes for taxpayers. The taxpayers and withholding agents may handle the tax declaration or submit the statements for the withheld and paid taxes as well as the collected and paid taxes by post and electronic data.
The electronic data shall refer to the electronic modes such as the telephone voice, exchange of electronic data and network transmission that are specified by the tax authorities.

Article 31 Where the taxpayers complete the tax declaration by post, they shall use the special uniform envelopes for tax declarations and take the receipts of postal departments as the proof for tax declaration. For the tax declarations that are completed by post, the date on the postmark shall be deemed as the actual date for the declarations.
Where the taxpayers complete the tax declarations by electronic modes, they shall keep the relevant materials in accordance with the time limit and requirements that are specified by the tax authorities and regularly submit these materials to the competent tax authorities in written.

Article 32 Where there is no payable tax during the period of tax, the taxpayers also shall complete the tax declarations in accordance with the regulations.
Where any taxpayers are subject to tax reduction or exemption, such taxpayers shall complete the tax declaration in accordance with the regulations during the period of tax reduction or exemption.

Article 33 The main contents with regard to the tax declaration of the taxpayers and withholding agents or the statements for the withheld and paid taxes or the collected and paid taxes shall include: tax categories and tax items, taxable projects or withheld and paid taxes or collected and paid taxes, taxation basis, deductible items and standards for deduction, applicable tax rate or tax amount per unit, refundable items and amounts thereof, items and amounts of tax that shall be reduced and exempted, payable amount or the taxes that shall be withheld, collected and paid, applicable tax period, postponed payable taxes, outstanding taxes and overdue fines.

Article 34 The taxpayers shall faithfully fill in the forms for tax declarations and submit the following relevant certificates and materials in accordance with the circumstances when they handle the tax declarations:
1. The financial and accounting statements and related explanatory materials;
2. The contracts, agreements and vouchers that are related to tax payment;
3. The electronic materials for tax declarations with regard to the tax-control devices;
4. The certificates of tax administration for outgoing operations and receipts of tax payment in different places;
5. The relevant documentary evidences which are issued by the notarization institutions in or out of China; and
6. Other relevant certificates and materials that shall be submitted as required the tax authorities.

Article 35 The withholding agents shall faithfully fill in the statements for the withheld and paid taxes or the collected and paid taxes and submit the legal vouchers of the withheld and paid taxes or the collected and paid taxes and the other relevant certificates and materials that are required by the tax authorities when they submit the reports of the withheld and paid taxes or the collected and paid taxes.

Article 36 With regard to the taxpayers that pay the taxes periodically with fixed-sum payment, they may complete the tax declaration in the manners such as summary declarations or simplified levying periods.

Article 37 Where it is really difficult for the taxpayers or the withholding agents to complete the tax declarations or submit the statements for the withheld and paid taxes or the collected and paid taxes within the prescribed time limit and it is necessary to be postponed, such taxpayers or withholding agents shall apply to the tax authorities for deferral in written within the prescribed time limit and complete such deferral within the approved time limit after they are approved by the tax authorities.
Where the taxpayers or withholding agents fail to complete the tax declaration or submit the statements for the withheld and paid taxes or the collected and paid taxes due to any force majeure, they may postpone handling such business; but they shall immediately report to the tax authorities after the cases of force majeure are eliminated. The tax authorities shall grant approval after they ascertain the facts.

Chapter V Tax Collection

Article 38 The tax authorities shall strengthen the administration of tax collection and establish and improve the liability systems.
The tax authorities shall determine the manners for tax collection in accordance with the principles that may ensure the national tax to be put into the State Treasury promptly and totally, facilitate the taxpayers and reduce the revenue costs.
The tax authorities shall strengthen the administration over the taxpayers on their export tax refunds and the specific administrative measures shall be formulated by the SAT together with the relevant departments of the State Council.

Article 39 The tax authorities shall promptly hand in the taxations, overdue fines and fines with regard to all kinds of taxes to the State Treasury in accordance with the budget items and levels, the tax authorities shall not occupy, divert or withhold them and shall not put them into any accounts other than those tax accounts that are stipulated by the State or the Treasury.
With regard to the taxations, overdue fines and fines that have been put in the State Treasury, any entities or individuals shall not change the budget items and the levels of them without permission or authorization.

Article 40 The tax authorities shall actively promote the use of checks, bank cards and electronic settlement in tax payment in accordance with the principles of convenience, shortcut and safety.

Article 41 Where any taxpayers encounter one of the following circumstances, they shall be deemed as they are faced with the especial difficulties that are mentioned in Article 31 of the Law on the Administration of Tax Levying:
1. The taxpayers suffer large losses due to any force majeure, as well as their normal production and operations are materially affected;
2. The current-period monetary funds are not enough to pay the taxes after the payable wages and social insurance premium are deducted.
The state tax bureaus and local tax bureaus in the cities specifically designated in the State plan may examine and approve the deferral of tax payment for taxpayers by reference to the Paragraph 2 under Article 31 of the Law on the Administration of Tax Levying.

Article 42 Where any taxpayers need to postpone the payment of taxes, they shall make applications before the expiry of the time limit for tax payments and submit the following materials: the applications for deferral of tax payments, the balance of current-period monetary capital and the statements of all the bank deposit accounts, the balance sheets and the payable wages and social insurance premium, and the expenditure budgets that are required by tax authorities.
The tax authorities shall make decisions on whether or not to approve within 20 days after they receive the applications for the deferral of tax payments; where such applications are not approved, the overdue fines shall be paid as of the expiry date of the time limit for tax payments.

Article 43 For any taxpayers that are eligible for the tax reduction and exemption,the tax payments shall be restituted from the next day after the expiry of tax reduction and exemption.Where the conditions for tax reduction and exemption change, the taxpayers above mentioned shall report such changes to the competent tax authorities while conducting tax declarations.Where the taxpayers are not subject to the conditions for tax reduction and exemption any more, they shall perform the tax liabilities in accordance with the law.Where such taxpayers fail to pay taxes in accordance with the law, the tax authorities shall recover such taxes.

Article 44 The tax authorities may, based on the principles to facilitate the administration and control of tax and the tax payment, authorize the relevant entities and persons to collect the scattered taxes and the taxes that are paid in different places on behalf of them and issue the authorized entities and persons with the certificates of commissioned collectors in accordance with the relevant regulations of the State. The authorized entities and persons may collect taxes in the name of tax authorities in accordance with the requirements of the certificates of commissioned collectors and the taxpayers shall not refuse to pay the taxes; where any taxpayers refuse, the authorized entities and persons shall report such refusals to the tax authorities promptly.

Article 45 The receipts of tax payment that are mentioned in Article 34 of the Law on the Administration of Tax Levying shall refer to all kinds of receipts of tax payment, pay-in warrants, revenue stamps, vouchers for withholding (collecting) taxes and any other certificates of tax payment.
Any entities and individuals shall not print the receipts of tax payment without the designation of any tax authorities. The receipts of tax payment shall not be lent, resold, altered or forged.
The receipt form of tax payment and the administration measures thereof shall be formulated by the SAT.

Article 46 The tax authorities shall issue the receipts of tax payment to the taxpayers after they receive the taxes. Where the taxpayers pay taxes by banks, the tax authorities may authorize thebanks to issue the receipts of tax payment to such taxpayers.

Article 47 Where any taxpayers are subject to one of the conditions that are listed in Article 35 or Article 37 of the Law on the Administration of Tax Levying, the tax authorities shall be entitled to check and ratify the amount of payable taxes of such taxpayers by using one of the following measures:
1. Check and ratify the amount of payable taxes by reference to the tax burden levels of the taxpayers in the congener or similar industries of the same place with the similar operation scales and income levels;
2. Check and ratify the amount of payable taxes in accordance with the measures of operation incomes or cost plus the reasonable fees and profits;
3. Check and ratify the amount of payable taxes through the extrapolation or calculation based on the raw materials, fuels and power that are consumed;
4. Check and ratify the amount of payable taxes in accordance with any other reasonable measures.
Where it is not enough to accurately check and ratify the amount of payable taxes by using one of the measures that are listed in the preceding paragraph, two or more measures may be taken simultaneously.
Where any taxpayers have any objections to the amounts of payable taxes that are checked and ratified by the tax authorities by using the measures that are listed in this Article 47, such taxpayers shall provide the relevant evidences and the amount of payable taxes shall be adjusted after the tax authorities verify these evidences.

Article 48 The tax authorities shall be responsible for the evaluation of the credit rating of taxpayers. The measures for evaluating the credit rating of taxpayers shall be formulated by the SAT.

Article 49 Where any contractors or lessees have the independent production and operation rights, are financially independent and regularly pay the contract fees and charter money to their employers or lessors, such contractors or lessees shall pay the taxes with regard to their incomes and earnings from the production and operation and accept the tax administration, unless otherwise stipulated by the laws and administrative regulations.
The employers or lessors shall report the relevant conditions of the contractors or lessees to the competent tax authorities within 30 days from the day when the contracting or leasing occurs. Where the employers or lessors fail to report that, the employers or lessors and the contractors or lessees shall undertake the joint liabilities with regard to the tax payments.

Article 50 Where the taxpayers are involved in dissolution, cancellation and bankruptcy, they shall report such conditions to their competent tax authorities before they go to liquidation. Where such taxpayers fail to settle the payable taxes, their competent tax authorities shall participate in their liquidation.

Article 51 The term "affiliated enterprises" as stated in Article 36 of the Law on the Administration of Tax Levying shall refer to the companies, enterprises or any other economic entities which have one of the following relationships:
1. There is direct or indirect ownership or control relationship, as on funds, business, purchases and sales.
2. Hold or controlled directly or indirectly by a third party.
3. Other affiliated relationships on benefits.
Any taxpayer shall be under the obligation to provide the detailed price or expense standards to its local tax authority with regard to its business transactions with the affiliated enterprises. The specific measures shall be formulated by the SAT.

Article 52 The businesses between or among the independent enterprises as stated in Article 36 of the Law on the Administration of Tax Levying shall refer to the businesses between or among the enterprises without affiliated relationship that are completed according to the fair execution prices and business conventionalities.

Article 53 The taxpayers may propose the pricing principles and computation methods for the businesses with their affiliated enterprises to the competent tax authorities. After the competent tax authorities review and approve the proposals, they shall make conventions with the taxpayers in advance with regard to the pricing matters and supervise the implementation of the taxpayers.

Article 54 The tax authorities shall adjust the tax payable of the taxpayers if the businesses of the taxpayers with the affiliated enterprises are subject to one of the following conditions:
1. The purchasing and sales businesses are not priced in accordance with the businesses of the independent enterprises.
2. The paid or received interests of the financing or lending funds exceed or are less than the amounts that are agreed between the non-affiliated enterprises, or the interest rates exceed or are less than the normal interest rates of similar businesses.
3. The provisions of services are not charged or paid in accordance with the businesses between the independent enterprises.
4. The businesses such as property transfer or provision of the property right use are not priced or charged or paid in accordance with the businesses between the independent enterprises.
5. Other circumstances in which the businesses are not priced in accordance with the businesses between the independent enterprises.

Article 55 Where any taxpayers have one of the circumstances as described in Article 54 of these Rules, the tax authorities may adjust the taxable revenues or incomes according to the following methods:
1. According to the price for the same or similar businesses between the independent enterprises.
2. According to the obtainable incomes and profit margins with the prices for reselling to the non-affiliated third party.
3. According to the cost plus reasonable expenses and profits.
4. According to any other reasonable methods.

Article 56 Where the taxpayers and its affiliated enterprises fail to pay the prices or expenses according to the businesses between the independent enterprises, the tax authorities shall make adjustments within 3 years after the taxable years of the occurrence of such businesses; under any special cases, the tax authorities may adjust them within 10 years after the taxable years of the occurrence of such businesses.

Article 57 The taxpayers that fail to complete the tax registrations for their production or operation as stated in Article 37 of the Law on the Administration of Tax Levying shall include any taxpayers that engage in any production and businesses in another county (cities) but fail to apply for inspection and registration to the local tax authorities.

Article 58 Where any tax authorities detain the commodities or goods of any taxpayers in accordance with the provisions under Article 37 of the Law on the Administration of Tax Levying, such taxpayers shall pay their taxes within 15 days after the date of detaining.
With regard to the detained commodities or goods that are fresh, live, perishable or easy to lose the effectiveness, the tax authorities may shorten the detaining period as mentioned in the preceding paragraph in accordance with the shelf life of the detained goods.

Article 59 The other properties mentioned in Articles 38 and 40 of the Law on the Administration of Tax Levying shall include the taxpayer's immovable and movable properties such as real estates, cash and portfolio.
The automobiles, jewelry, antiques and paintings, luxurious houses or any other houses more than one shall not belong to the houses and commodities necessary for supporting the individual's own life and the family as mentioned in Articles 38, 40 and 42 of the Law on the Administration of Tax Levying.
The tax authorities shall not take the tax guaranty measures and enforcement measures on any other living commodities that the unit prices are less than CNY5,000.

Article 60 The family supported by individuals as stated in Articles 38, 40 and 42 of the Law on the Administration of Tax Levying shall refer to the spouse living together with the taxpayer, direct relatives and any other relatives who have no source of income and are raised by the taxpayers.

Article 61 The "guaranty or guaranties" as stated in Articles 38 and 88 of the Law on the Administration of Tax Levying shall include the tax payment guaranty or guaranties that are provided for any taxpayers by any tax payment guarantors who recognized by the tax authorities, as well as the guaranty or guaranties that are provided by any taxpayers or any third persons by their own properties that are not or not totally subject to any collateral rights.
A tax guarantor shall refer to any natural person, legal person or other economic entity that has a guaranty for tax payment within the territory of China.
Any entities and individuals without guarantee qualification that subject to the provisions of the laws and administrative regulations shall not act as any tax guarantors.

Article 62 Where any tax guarantors agree to provide guaranties of tax payment for any taxpayers, they shall fill in the tax guarantee forms in which the guaranteed objects, guaranteed scope, guaranteed period, guaranty obligations and other relevant matters shall be expressly stated. The warranties shall not come into force before the taxpayers and the guarantors of tax payment sign them and stamp them with their seals and before the tax authorities approve.
Where any taxpayers or any third parties provide the tax payment guaranties with their properties, they shall fill in the lists of the properties and expressly state the value of the properties and any other relevant matters. The lists of properties for the tax payment guaranties shall not come into force before the taxpayers and the third parties sign them and stamp them with their seals and before the tax authorities approve.

Article 63 When any tax authorities detain or seal up any commodities, goods or any other properties, they shall dispatch two or more tax personnel to implement such matters and notify the persons subject to the execution. Where the persons subject to the execution are natural persons, the tax authorities shall notify such persons or their adult members of family to be present; where the persons subject to the execution are legal persons or any other organizations, the tax authorities shall notify their legal representatives or principals to be present; if they refuse to be present, the execution shall not be affected.

Article 64 When any tax authorities detain or seal up any commodities, goods or any other properties for implementing the provisions under Articles 37, 38 and 40 of the Law on the Administration of Tax Levying, the tax authorities shall evaluate the prices of such commodities, goods or properties by reference to the market prices, factory prices or appraised prices of the similar commodities, goods or properties.
When the tax authorities determine the values of the commodities, goods or properties that are detained and sealed up in accordance with the provision of the preceding paragraph, they shall include the overdue fines as well as any expenses arising out of auctions and selling-offs.

Article 65 With regard to the commodities, goods or properties in which their values are more than the payable taxes and may be indivisible, the tax authorities may wholly detain, seal up or auction such commodities, goods or properties if no any other properties of the taxpayers, withholding agents or tax payment guarantors may be enforceable.

Article 66 When any tax authorities detain or seal up any movable and immovable properties with the property rights registration certificates for implementing the provisions under Articles 37, 38 and 40 of the Law on the Administration of Tax Levying, the tax authorities may order the parties to hand over their certificates to the tax authorities and may give coordinative enforcement notices to the competent organs so that the competent organs will not handle the transfer procedures of such movable and immovable properties during the period of detaining and sealing up.

Article 67 The tax authorities may order the persons subject to enforcement to take care of the sealed-up commodities, goods or any other properties and such persons shall undertake the storage responsibility.
Where the continuous use of the sealed-up properties will not reduce their values, the tax authorities may allow the persons subject to enforcement to continue to use the properties. Any losses or damages arising out of the care or the misconducts of the persons subject to enforcement shall be undertaken by the persons subject to enforcement.

Article 68 Where the taxpayers pay the taxes within the time limit specified by the tax authorities after they take tax preservation measures in the tax authorities, the tax authorities shall relieve such tax preservation within one day after they receive the taxes or the tax payment receipts from the banks.

Article 69 When the tax authorities sell the detained, sealed-up commodities, goods or other properties for the payable taxes, such commodities, goods or properties shall be auctioned by any auction institutions established in accordance with the law; where the commodities, goods or properties fail to be auctioned or not suitable for auctions, the tax authorities may entrust the local commercial enterprises for sales or also order the taxpayers to sell them within time limits; where the tax authorities fail to entrust the commercial enterprises for sales or the taxpayers are unable to sell them, the tax authorities may sell them and the actual measures thereof shall be stipulated by the SAT. Any commodities that are prohibited from free trading by the State shall be delivered to the relevant units for purchases in accordance with the stipulated prices by the State.
After the incomes of auctions or selling-off offset the expenses of tax payable, overdue fines, fines and expenses for the auctions and selling-off, the remains shall be paid back to the persons subject to the enforcement within 3 days.

Article 70 The term "losses" as stated in Articles 39 and 43 of the Law on the Administration of Tax Levying shall refer to any or all direct losses or damages of legal interests to the taxpayers, withholding agents or tax guarantors due to the reasons of the tax authorities.

Article 71 The term "other financial institutions" as stated in the Law on the Administration of Tax Levying shall refer to any trust and investment corporations, credit cooperatives and postal saving institutions as well as any other financial organizations that are established under the approval of the People's Bank of China and China Securities Regulatory Commission.

Article 72 The term "deposits" as stated in the Law on the Administration of Tax Levying include the saving deposits of the investors of the single proprietorship, the partners of the partnerships and the individually-owned businesses as well as the funds in the capital accounts of shareholders.

Article 73 Where any taxpayers, withholding agents that engage in the production or operations fail to pay or remit the taxes within the specified time limit and the tax guarantors fail to pay the guaranteed taxes within the specified time limit, the tax authorities shall give them the notices on tax payment within the time limit and the longest period for the payment of the ordered paid or remitted taxes shall not be more than 15 days.

Article 74 Where any taxpayers with tax arrears or their legal representatives fail to pay off the taxes payable, overdue fines nor provide any tax guaranties before they leave China, the tax authorities may notify the exit and entry administrative authorities to prevent the taxpayers from leaving China. The actual measures for preventing from leaving China shall be stipulated by the SAT together with the Ministry of Public Security.

Article 75 The starting and ending time for the collection of overdue fines as stated in Article 32 of the Law on the Administration of Tax Levying shall be from the next day of the expiration of tax payment deadline in accordance with the provisions of the laws and administrative regulations or as stated by the tax authorities in accordance with the law and administrative regulations to the day when the taxpayers or the withholding agents actually pay or remit the tax.

Article 76 The tax authorities at the county level or above shall periodically publicize the tax arrears of the taxpayers at the taxation places or on the media such as broadcast, TV, newspapers, journals and networks.
The measures for periodically publicizing the tax arrears of the taxpayers shall be formulated by the SAT.

Article 77 The larger tax arrears as stated in Article 49 of the Law on the Administration of Tax Levying shall refer to the tax arrears over CNY50,000.

Article 78 Where any tax authorities find any overpaid taxes by the taxpayers, they shall complete the refund procedures within 10 days as of the date when they find such overpaid taxes. Where any taxpayers find any overpaid taxes by themselves and request for refund, the tax authorities shall verify such overpaid taxes and complete the refund procedures within 30 days as of the date when they receive the refund application of the taxpayers.
The refunds of the overpaid taxes plus the bank deposit saving interest of the same period as stated in Article 51 of the Law on the Administration of Tax Levying exclude the settlement tax refunds, export tax refunds, and various reduction tax refunds due to prepayment of taxes in accordance with the law.
The interest for the tax refunds shall be calculated in accordance with the current deposit rates of the People's Bank of China on the day when the tax authorities complete the tax refunds.

Article 79 Where any taxpayers have tax refunds and tax arrears, the tax authorities may offset the tax arrears against the tax refunds and the interests. Any balance after the offsetting shall be returned to the taxpayers.

Article 80 The responsibilities of the tax authorities as stated in Article 52 of the Law on the Administration of Tax Levying shall refer to any improper applications of the tax laws or the administrative regulations or any violations of laws during the enforcement of the tax authorities.

Article 81 The faults such as the calculation errors of any taxpayers or any withholding agents as stated in Article 52 of the Law on the Administration of Tax Levying shall refer to any non-deliberative wrong use of formulas as well as any obvious clerical errors.

Article 82 The term "special circumstances" as stated in Article 52 of the Law on the Administration of Tax Levying shall refer to the circumstances in which any taxpayers or withholding agents fail to pay or pay less than, fail to deduct or deduct less than, fail to collect or collect less than the payable taxes, and the accumulative amount exceeds CNY100,000.

Article 83 The terms for the supplementary payment, pursued payment of taxes and overdue fines as stated in Article 52 of the Law on the Administration of Tax Levying shall be calculated from the date when the taxpayers or withholding agents fail to pay or pay less than the taxes payable.

Article 84 When the audit and the financial departments audit or inspect any tax authorities in accordance with the law, the tax authorities shall follow any of the decisions of the audit and the financial departments on their violations of the tax laws; where the audit and the financial departments find any violations of the tax laws that are constituted by the inspected and audited entities, they shall issue the letters of decisions or opinions to the inspected and audited entities and order them to pay their payable taxes or overdue fines to the tax authorities. The tax authorities shall, based on the letters of decisions or opinions of the relevant departments and in accordance with the provisions of the laws or administrative regulations, put the taxes payable and the overdue fines into the State Treasury pursuant to the administration scope of tax collections and the budgetary levels of the taxes.
The tax authorities shall reply the executions or performances in written to the audit departments and the financial departments within 30 days after they receive the letters of decisions or opinions.
Any relevant departments shall not put the taxes payable and overdue fines that are found during their execution of functions into the storage without permission or treat them at their own discretion or occupy in the name of other money.

Chapter VI Taxation Inspection

Article 85 The tax authorities shall establish the scientific inspection systems, arrange the inspections with overall considerations and strictly control the number of inspections on the taxpayers and withholding agents.
The tax authorities shall formulate reasonable tax inspection procedures in which the responsibilities of the persons in charge of selection of cases, inspection, judgment and execution shall be specified and the responsibilities shall be separated and restricted with each other for the purposes of standardizing the procedures of cases selection and inspections.
The specific measures for the tax inspections shall be formulated by the SAT.

Article 86 Any tax authorities may exercise their powers as stated in Paragraph 1 under Article 54 of the Law on the Administration of Tax Levying at the business place of the taxpayers or the withholding agents; if necessary, through the approval of the directors of the tax authorities (sub-offices) at the county level or above, the tax authorities may recall the previous annual accounting books, accounting vouchers, statements and other relevant materials of the taxpayers or the withholding agents to their offices for inspections, provided that the tax authorities must issue the detailed lists to the taxpayers or the withholding agents and return them within 3 months; in case of any special circumstances, through the approval of the heads of the tax authorities at the municipalities with districts or the autonomous prefectures level or above, the tax authorities may recall the current accounting books, accounting vouchers, statements and other relevant materials of the taxpayers or the withholding agents to their offices for inspections, provided that the tax authorities must return them within 30 days.

Article 87 When the tax authorities exercise their powers in accordance with the provisions of Paragraph 6 under Article 54 of the Law on the Administration of Tax Levying, they shall designate special personnel for such functions with the permits of inspection deposit accounts in nationwide uniform form and shall be responsible for keeping secret for the persons checked.
The permit of inspection deposit account shall be formulated by the SAT.
What the tax authorities may inquire includes the deposit account balance and the capital flow of the taxpayers.

Article 88 In accordance with Article 55 of the Law on the Administration of Tax Levying, the term for the tax preservation measures that are taken by the tax authorities shall not be more than 6 months in general; where the term is necessary to postpone, it shall be reported to the SAT for approval.

Article 89 The tax authorities and tax personnel shall exercise their powers of tax inspection in accordance with the provisions of the Law on the Administration of Tax Levying and these Rules.
The tax personnel shall show their tax inspection permits and the tax inspection notices when they carry out tax inspections; any taxpayers or withholding agents as well as any other interested parties shall have the right to refuse the inspections where the tax personnel have no permits and notices. When the tax authorities inspect the markets and concentrated business operators, they may use the uniform tax inspection notice.
The patterns and the measures for usage and administration of the tax inspection permits and the tax inspection notices shall be formulated by the SAT.

Chapter VII Legal Liabilities

Article 90 Where any taxpayers fail to complete the check or renew of the tax registration documents in accordance with the regulations, they shall be ordered to make rectifications by the tax authorities within time limits and may be fined less than CNY2,000; if the circumstances are serious, they shall be fined more than CNY2,000 but less than CNY10,000.

Article 91 Where any taxpayers print, lend, trade off, alter or forge any tax payment vouchers in illegal manners, they shall be ordered to make rectifications by the tax authorities and may be fined more than CNY2,000 but less than CNY10,000; if the circumstances are serious, they shall be fined more than CNY10,000 but less than CNY50,000; in case that any crimes are constituted, their criminal liabilities shall be investigated.

Article 92 Where any banks or any other financial institutions fail to log in the tax registration certificate numbers of the taxpayers that engage in productions and operations or fail to log in the account numbers of the taxpayers that engage in productions and operations in the tax registration certificates in accordance with the provisions of the Law on the Administration of Tax Levying, they shall be ordered to make rectifications by the tax authorities and may be fined more than CNY2,000 but less than CNY20,000; if the circumstances are serious, they shall be fined more than CNY20,000 but less than CNY50,000.

Article 93 Where any individuals or institutions illegally provide any bank accounts, invoices, certificates or other conveniences to any taxpayers or any withholding agents that result in failure of tax payment or paying less than the taxes payable or commit fraud to receive national import tax refunds, any of their illegal gains shall be confiscated and they shall be fined less than one times of the taxes unpaid, insufficiently paid or the fraudulent export tax refund by the tax authorities.


Article 94 Where any taxpayers refuse to withhold or remit taxes, the withholding agents shall report that to the tax authorities and the tax authorities shall directly collect the taxes and the overdue fines thereof from the taxpayers; in case that the taxpayers refuse to pay the taxes or overdue fines, they shall be subject to the provisions under Article 68 of the Law on the Administration of Tax Levying.

Article 95 When the tax authorities inspect the payment of taxpayers at railway stations, ports, airports, postal enterprises and their branches in accordance with Paragraph 5 of Article 54 of the Law on the Administration of Tax Levying, where any units refuse the inspection, they shall be ordered to make rectifications by the tax authorities and may be fined less than CNY10,000; if the circumstances are serious, they shall be fined more than CNY10,000 but less than CNY50,000.

Article 96 Where any taxpayers and withholding agents have one of the following circumstances, they shall be penalized in accordance with Article 70 of the Law on the Administration of Tax Levying:
1. Provide false materials, untruthfully reporting or refusing to provide relevant materials;
2. Refuse or prevent the tax authorities from recording, tape recording, video recording, taking picture and copying the information and materials related to the cases;
3. During inspection, the taxpayers and withholding agents transfer, hide or destroy any relevant materials;
4. Other cases of refusing tax inspection in violation of laws.

Article 97 Where any tax personnel illegally divide the detained or sealed up commodities, goods or any other properties, and if the cases are serious or crimes are constituted, their criminal liabilities shall be investigated; in case no crime is constituted, the administrative penalties shall be imposed on them in accordance with the law.

Article 98 Where any tax agents violate tax laws and administrative regulations and result that the taxpayers fail to pay or pay less than the taxes payable, in addition to the payment of the taxes or remission payment of taxes payable or overdue fines that shall be paid by the taxpayers, the tax agents shall be imposed a fine more than 50% but less than 3 times of the amounts that are not paid or paid less than the taxes payable.

Article 99 Where any tax authorities fine the taxpayers, withholding agents or any other interested parties or confiscate their illegal incomes, they shall issue the receipts for the fines and confiscations. Without the receipts, the taxpayers, withholding agents or the other interested parties shall have the right to refuse such payment.

Article 100 The tax disputes as stated in Article 88 of the Law on the Administration of Tax Levying shall refer to any disputes arising out of the objections of the taxpayers, withholding agents or tax payment guarantors to the actual administrative actions in which the tax authorities determine the tax subjects, tax objects, tax scope, tax reduction, tax exemption and tax refund, applicable tax rates, tax basis, tax steps, term of tax payment, tax payment place and the mode of tax collection.

Chapter VIII Services of Documents

Article 101 Where any tax authorities serve the tax documents they shall directly deliver the tax documents to the addressees.
Where the addressees are citizens, the documents shall be signed and accepted by the addressees. Where the addressees are not present, the documents shall be signed and received by any adult relatives living together with the addressee.
Where the addressees are legal persons or any other organization, the legal representative of the legal person or the person in charge of the organization or the financial principal of such legal person or such organizations shall sign and receive the documents. Where the addressees have any agents, the agents may sign and receive the documents.

Article 102 The service of the tax documents shall be given a proof of service, and the addresses or any other signers formulated by these Rules shall note the date of receipt, and sign or seal, the document shall be deemed to have been served.

Article 103 Where the addressees or other signers formulated by these Rules refuse to sign the tax documents, the servicemen shall note the reasons for refusal and the date on the proof of service, and the servicemen and the witness shall affix their signatures or seals, and leave the tax documents at the places of the addressees, the document shall be deemed to have been served.

Article 104 Where it is impossible to make a direct service, the tax authorities shall entrust other relevant authorities or any other units to effect the service or make the service by post.

Article 105 Where the tax documents are served directly or entrusted, the dates of receipts that are signed and recorded on the proofs of services by the addressees or the witnesses shall be deemed as the dates of services; where the tax documents are served by post, the dates of receipts that are noted on the registered postal
Articles shall be deemed as the dates of services and the tax documents shall be deemed to have already been served.

Article 106 Under one of the following circumstances, the tax authorities may serve the tax documents by public announcements, and the tax documents shall be deemed to have been served within 30 days after the announcement:
1. A number of served parties are involved in the same matter;
2. The tax documents cannot be served through any of the other measures of services that are provided in this
Chapter.

Article 107 The formats of the tax documents shall be formulated by the SAT. The tax documents as stated in these Rules shall include:
1. The tax issue notice;
2. The notice of rectification within a time limit;
3. The decision of tax preservation measure;
4. The decision of tax enforcement;
5. The tax inspection notice;
6. The tax disposal decision;
7. The tax administrative penalty decision;
8. The administrative review decision;
9. Any other tax documents.

Chapter IX Supplementary Provisions

Article 108 The terms "more than", "less than", "within...days" and "expiry" as stated in the Law on the Administration of Tax Levying and these Rules shall include the following figures.

Article 109 Where the last days of the time limits as stated in the Law on the Administration of Tax Levying and these Rules are legal festivals or holidays, the next days of the expiry of the holidays shall be taken as the last days of the time limit; Where there are consecutive more than 3 days of legal festivals or holidays during the time limits, the time limits shall be extended by the days of the holidays.

Article 110 The commission for withholding or collection as stated in Paragraph 3 of Article 30 of the Law on the Administration of Tax Levying shall be incorporated in the budgetary management, which the tax authorities shall pay the withholding agents in accordance with the provisions of the laws and administrative regulations.

Article 111 The measures for which the taxpayers and withholding agents entrust the tax agents to complete any matters related to taxes shall be formulated by the SAT.

Article 112 The administration and collection of the taxes for occupation of cultivated lands, deed taxes, agriculture taxes and livestock taxes shall be implemented in accordance with the relevant regulations of the State Council.

Article 113 These Rules shall come into force as of October 15, 2002. The Implementing Rules of the Law of the People's Republic of China on the Administration of Tax Collection that are promulgated by the State Council on August 4, 1993 shall be repealed simultaneously.