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| Rules for the Implementation of the Law of the People's Republic of China on the Administration of Tax Collection |
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(Promulgated by Decree No. 362 of the State Council of the People's Republic of Chapter I General Provisions Article 1 These Rules are hereby formulated in accordance with the provisions of the Law of the People's Republic of Article 2 The Law on the Administration of Tax Collection and these Rules apply to the collection of various taxes by tax authorities according to law. In case where there is no provision in the Law on the Administration of Tax Collection and these Rules, the provisions of other tax laws, tax administrative rules or regulations shall be implemented. Article 3 Decisions made by any department, unit or individual that contravene the tax laws, tax administrative rules or regulations shall be null and void. Relevant tax authorities shall not implement these decisions and shall report to tax authorities at a higher level. Taxpayers shall fulfill their obligation of tax payment in accordance with the provisions of tax laws, tax administrative rules or regulations. Contracts, agreements and other documents signed by taxpayers that contravene tax laws, tax administrative rules or regulations shall be null and void. Article 4 The State Administration of Taxation shall be responsible for formulating overall plans, technical standards, technical designs and implementing measures in the construction of national taxation information system. According to the overall plans, technical standards, technical designs and implementing measures formulated by the State Administration of Taxation, tax authorities at various levels shall work effectively in the construction of taxation information system in their respective regions. The local people's governments at various levels shall give positive support to the construction of the taxation information system and organize the related departments to have the relevant information shared. Article 5 Information to be kept confidential for taxpayers and tax withholding agents, as stipulated in Article 8 of the Law on the Administration of Tax Collection, refers to the commercial secret and individual privacy of taxpayers and tax withholding agents. Any violation of tax law by taxpayers and withholding agents does not fall within the scope of confidentiality. Article 6 The State Administration of Taxation shall formulate the norm of conduct and standard of service for tax officials. Tax authorities at a higher level shall promptly rectify any violation of tax law by tax authorities at a lower level upon discovery. Tax authorities at a lower level shall promptly correct their violation of tax law according to the decision of tax authorities at a higher level. Tax authorities at a lower level shall report to tax authorities at a higher level or relevant department upon discovering any violation of tax law by tax authorities at a higher level. Article 7 Tax authorities shall grant awards to offence reporters on the basis of their contributions. Funds needed to pay these awards shall be included in the annual budget of the taxation department and approved separately. The specific measures and standard for the use of award-funds shall be formulated by the State Administration of Taxation jointly with the Ministry of Finance. Article 8 When assessing the amount of tax payable, adjusting the amount of fixed tax payment, conducting tax inspection, imposing tax administrative penalties, or conducting tax administrative reconsideration, tax officials shall recuse themselves if they have any of the following relationships with the taxpayer, or tax withholding agent, or its legal representative, or the direct responsible person: (1) spouse relationship; (2) lineal blood relationship; (3) collateral blood relationship within three generations; (4) close relative by marriage; or (5) any other interests relationship that may influence impartial law enforcement. Article 9 Taxation organs established according to provisions of the State Council and made known to the public, as stipulated in Article 14 of the Law on the Administration of Tax Collection, refer to the investigation bureaus of the tax bureaus or offices below the provincial level. The investigation bureaus are specifically responsible for the investigation and handling of cases involving tax evasion, avoidance of pursuance of tax in arrears, tax fraudulence, and refusal to pay tax. The State Administration of Taxation shall clearly define the respective functions of the tax bureau or office and the investigation bureau to avoid any overlap between them. Chapter II Tax Registration Article 10 Local offices of the State Administration of Taxation and local tax bureaus shall use the same code for tax registration of the same taxpayer and share information. The specific measures for tax registration shall be formulated by the State Administration of Taxation. Article 11 The administrative departments for industry and commerce at every level shall periodically notify the local offices of the State Administration of Taxation and local tax bureaus at the same level of the situations of issuance, alteration, cancellation and revocation of business licenses. The specific measures for notification shall be formulated by the State Administration of Taxation jointly with the State Administration for Industry and Commerce. Article 12 Taxpayers engaged in production or business operation shall, within 30 days from the date of obtaining their business licenses, file written applications for tax registration with the competent tax authorities in the localities where the production or business operation is conducted or where the tax obligation occurs. They shall truthfully complete the tax registration form and submit the relevant certificate, documents and information as required by tax authorities. Taxpayers other than those mentioned in the preceding paragraph, except State organs and individuals, shall, by presenting relevant documents, go through the procedure for tax registration with the competent tax authorities in their localities within 30 days from the date of occurrence of tax obligation. Measures for tax registration of individual income tax by taxpayers shall be separately formulated by the State Council. The sample of tax registration certificate shall be determined by the State Administration of Taxation. Article 13 Tax withholding agents shall, within 30 days from the date of occurrence of tax withholding obligation, apply to local tax authorities for tax withholding registration and obtaining the tax withholding registration certificate. In case a tax withholding agent already has completed a tax registration procedure, tax authorities may only record the tax withholding obligation on its tax registration certificate and will not issue a separate tax withholding registration certificate to the agent. Article 14 When any change occurs in the contents of tax registration, the taxpayer shall, within 30 days from the date of completing the procedure for changing its business license with the administrative department for industry and commerce or any other department, apply to the original tax registration authorities for changing its tax registration by presenting the relevant certificates. When any change occurs in the content of tax registration and there is no need to make any change in the registration with the administrative department for industry and commerce or any other department, the taxpayer shall, within 30 days from the date of such a change, apply to the original tax registration authorities for changing its tax registration by presenting the relevant certificates. Article 15 Where, according to law, a taxpayer's obligation to pay tax terminates because of dissolution, bankruptcy, cancellation or other reasons, the taxpayer shall, before going through the procedure for cancellation of its registration with the administrative department for industry and commerce or any other department, apply to the original tax authorities for cancellation of its tax registration by presenting the relevant certificates and documents; where there is no need for registration with the administrative department for industry and commerce or any other department according to relevant provisions, the taxpayer shall, within 15 days from the date of approval by relevant department or declaration of the termination, apply to the original tax authorities for cancellation of its tax registration by presenting the relevant certificates. Where any change in the taxpayer's domicile or business site involves the change of tax registration authorities, the taxpayer shall, before going through the alteration or cancellation procedure of registration with the administrative department for industry and commerce or any other department, or before changing the domicile or business site, apply to the original tax registration authorities for cancellation of its tax registration, and, within 30 days, apply for tax registration with the tax authorities of the locality to which its domicile or business site is transferred. The taxpayer whose business license is revoked by the administrative department for industry and commerce or whose registration is cancelled by any other department shall, within 15 days from the date of its business license revocation or registration cancellation, apply to the original tax registration authorities for cancellation of its tax registration. Article 16 Before going through the procedure for cancellation of tax registration, the taxpayer shall settle all taxes payable, surcharge on tax in arrears and penalties, and shall hand over the invoices, tax registration certificate and other taxation documents to tax authorities. Article 17 The taxpayer engaged in production or business operation shall, within 15 days from the date of opening a basic deposit account or other deposit accounts, report in writing all the account numbers to competent tax authorities, or shall submit a written report to competent tax authorities within 15 days from the date of a change, if any. Article 18 The taxpayer, except one who does not need to obtain a tax registration certificate according to the provisions, must present its tax registration certificate when handling the following matters: (1) opening bank accounts; (2) applying for tax reduction, exemption or refund; (3) applying for extension of tax declaration or deferral of tax payment; (4) purchasing of invoices; (5) applying for a taxation certificate for business operation outside of the locality; (6) going through the procedure for termination or suspension of business operation; or (7) other matters regarding taxation. Article 19 Tax authorities shall adopt a system of periodic inspection and replacement of tax registration certificate. The taxpayer shall go through certificate inspection or replacement procedures with competent tax authorities within the prescribed time limit by presenting the relevant certificates. Article 20 The taxpayer shall hang up the original tax registration certificate openly in the site of production or business operation or in the office for inspection by tax authorities. In case the tax registration certificate is lost, the taxpayer shall report within 15 days in writing to competent tax authorities and make an announcement in the newspaper declaring the lost certificate invalid. Article 21 Where a taxpayer engaged in production or business operation conducts production or business operation activities temporarily in another county (city), it shall present a copy of its tax registration certificate and the taxation certificate for business operation outside of the locality issued by the tax authorities in its locality to the tax authorities of the intended county (city) for inspection and shall accept the tax administration. Where a taxpayer engaged in production or business operation conducts business in a place outside of its locality, it shall go through the tax registration procedure with local tax authorities if the time of its production or business operation in the same place exceeds 180 days in the aggregate. Chapter III Administration of Accounting Books and Vouchers Article 22 Taxpayers engaged in production or business operation shall, within 15 days from the date of receipt of their business license or occurrence of tax obligation, set up accounting books in accordance with the relevant provisions by the State. The accounting books as mentioned in the preceding paragraph refer to general ledgers, detailed accounts, journal accounts and other auxiliary accounting books. General ledgers and journal accounts shall be bound into a book form. Article 23 Taxpayers who are engaged in small scale production or business operation and truly unable to set up their accounting books may entrust any registered accountant office or accounting personnel approved by tax authorities with account establishment and book keeping. Taxpayers with real difficulty in retaining such office or personnel may, upon approval by tax authorities above the county level, set up a pasting book for receipt and payment vouchers, a record book for purchase and sales of goods, or use a tax control device, in accordance with the provisions of tax authorities. Article 24 Taxpayers engaged in production or business operation shall, within 15 days from obtaining the tax registration certificates, submit a report on the financial and accounting systems or methods of financial and accounting settlement to competent tax authorities for the record. Taxpayers keeping book accounts with computers shall submit a report on the accounting software applied to their computer systems, the users' manual and related documents, before using them, to competent tax authorities for the record. The computerized accounting systems set up by taxpayers shall be in conformity with the relevant provisions of the State and shall be able to correctly and completely calculate the receipts or income of the taxpayer. Article 25 Tax withholding agents shall, within ten days from the date of occurrence of the withholding obligation in accordance with the provisions of the tax laws, tax administrative rules or regulations, set up separate accounting books regarding the tax withheld and paid or the tax collected and paid, pursuant to the categories of tax withheld or collected. Article 26 If a taxpayer or tax withholding agent has a sound accounting system and can use computers to accurately and completely calculate the receipts and income, or the tax withheld and paid or collected and paid, the complete written record of accounts put out by the computer system may be regarded as accounting books. If the accounting system is not well-established, and the computer system can not accurately and completely calculate the receipts and income, or the tax withheld and paid or collected and paid, the taxpayer or tax withholding agent shall set up a general ledger and other accounting books related to tax payment or tax withheld and paid or collected and paid. Article 27 Accounting books, vouchers and financial statements shall be made in Chinese. In national autonomous areas, a nationality language in common use in the locality may be used simultaneously. Foreign-funded enterprises and foreign enterprises may use a foreign language simultaneously. Article 28 Taxpayers shall install and use tax control devices as required by tax authorities, and submit the relevant data and information according to the provisions of tax authorities. The administrative measures for promoting the extensive use of tax control devices shall be separately formulated by the State Administration of Taxation and subjected to the State Council for approval before the implementation. Article 29 Accounting books, accounting vouchers, financial statements, tax payment vouchers, invoices, exportation vouchers and other tax-related documents should be legal, authentic and complete. Accounting books, accounting vouchers, financial statements, tax payment vouchers, invoices, exportation vouchers and other tax-related documents shall be maintained for 10 years, except as otherwise stipulated in laws or administrative rules or regulations. Chapter IV Tax Filing Article 30 Tax authorities shall establish and improve a self-assessment system for taxpayers. Upon approval of tax authorities, taxpayers or tax withholding agents may file tax returns or submit statements on tax withheld and paid or collected and paid to tax authorities by mail or by means of electronic data transmission. Electronic data transmission refers to such electronic means as telephone, electronic data exchange, and network transmission approved by tax authorities. Article 31 Taxpayers filing tax returns by mail shall use the special uniformed envelope for tax returns and keep the receipt issued by the post office as evidence for return filing. The date carried by the postmark for the posting day shall be the actual date of returns filing. Taxpayers filing tax returns electronically shall maintain the relevant documents within the prescribed time limit according to the requirement of tax authorities, and periodically submit them in writing to competent tax authorities. Article 32 Taxpayers with no due tax payment during any taxation period shall also file tax returns according to the relevant provisions. Taxpayers enjoying a tax reduction or exemption shall file tax returns in accordance with the relevant provisions during the period of tax reduction or exemption. Article 33 Tax returns by taxpayers or statements on tax withheld and paid or collected and paid by tax withholding agents shall include the main contents: tax categories and items, taxable items or items on which tax is withheld and paid or collected and paid, base of taxation, deduction items and standard, applicable tax rate or fixed tax payment for each unit, items and amount for tax refund, items and amount for tax reduction or exemption, amount of tax payment or of tax to be withheld and paid or collected and paid, period to which tax payment belongs, deferred tax payment, tax in arrears and surcharge on tax in arrears, etc. Article 34 Taxpayers shall, at the time of filing tax returns, fill in the tax returns truthfully and submit to tax authorities the following relevant documents and materials in the light of the requirements of different situations: (1) financial and accounting statements and related explanatory materials; (2) contracts, agreements and vouchers related to tax payment; (3) electronic tax filing information generated by tax control devices; (4) taxation certificates for business operation outside of the localities and corresponding tax payment vouchers; (5) relevant certifying documents issued by public notaries within or outside the Chinese territory; and (6) other necessary documents or materials required by tax authorities. Article 35 Tax withholding agents making statements on tax withheld and paid or collected and paid shall complete the statements truthfully, and submit to tax authorities the eligible vouchers for tax withheld and paid or collected and paid and other relevant documents and materials required by tax authorities. Article 36 Taxpayers paying tax periodically at a fixed amount may file tax returns in a simpler way and by combining tax payment periods. Article 37 Taxpayers or tax withholding agents with real difficulty in filing tax returns or submitting statements on tax withheld and paid or collected and paid within the prescribed time limit and requiring an extension shall, within the prescribed time limit, apply in writing to tax authorities for an extension, which shall be handled within the time limit approved by tax authorities. In case taxpayers or tax withholding agents are unable, due to force majeure, to file tax returns or submit statements on tax withheld and paid or collected and paid within the prescribed time limit, an extension is available. However, a report must be submitted to tax authorities immediately after the force majeure has vanished. The tax authorities will grant an approval after ascertaining the facts. Chapter V Tax Levying Article 38 Tax authorities shall strengthen the administration of tax levying and establish and improve a responsibility system. Tax authorities shall determine the mode of tax levying pursuant to the principles of ensuring a timely and full remittance of tax revenue to the state treasury, making it as easy as possible for taxpayers to pay tax and reducing taxation cost. Tax authorities shall strengthen the administration of tax refund for export. The specific administrative method shall be formulated by the State Administration of Taxation with the relevant departments of the State Council. Article 39 Tax authorities shall, pursuant to the budget accounts and budget levels prescribed by the State, remit in time to the state treasury all types of taxes, surcharge on tax in arrears and penalties, and shall not occupy, embezzle, or retain them, or remit them to any accounts other than the state treasury or the tax revenue accounts prescribed by the State. Any organization or individual shall not alter the budget accounts or budget levels of tax, surcharge on tax in arrears and penalties that have already been remitted to the State treasury. Article 40 Tax authorities shall, in accordance with the principles of convenience, expeditiousness and safety, actively popularize the use of check, bankcard and electronic settlement for tax payment. Article 41 Special difficulties mentioned in Article 31 of the Law on the Administration of Tax Collection include either of the following situations that a taxpayer is confronted with: (1) where force majeure has caused a great loss to the taxpayer and significantly affected its normal production or business operation; or (2) where the taxpayer's cash fund for the current period is not enough to settle tax payment after deducting payment to employees and social insurance premium. The municipal offices of the State Administration of Taxation and municipal local tax bureaus of the cities separately listed in the State plan may approve the taxpayer's application for a deferral of tax payment with reference to the limit of power as specified in paragraph 2 of Article 31 of the Law on the Administration of Tax Collection. Article 42 Taxpayers who are unable to pay tax within the set time limit shall, before the expiration of that limit, apply for a deferral and submit the following documents: the written application for tax deferral, balance of currency funds for the current period and statements of all deposit accounts in banks, balance sheet, expenditure budget for salaries of employees, social insurance premiums and so on, as requested by tax authorities. Tax authorities shall, within 20 days from the date of receipt of the application for tax deferral, decide whether or not to grant approval. A surcharge shall be imposed upon the taxpayer from the expiry date of the time limit for tax payment in case the deferral is not approved. Article 43 Taxpayers eligible for tax reduction or exemption, as specified by laws or administrative rules or regulations or as approved by statutory examining and approving authorities, shall, by presenting the relevant documents, go through the procedures for tax reduction or exemption with the competent tax authorities. Taxpayers shall resume tax payment from the date following the expiry date of the tax reduction or exemption. Taxpayers eligible for tax reduction or exemption shall report to tax authorities within 15 days from the date of occurrence of any change to the terms for tax reduction or exemption. Taxpayers shall fulfill tax payment liabilities according to law when they no longer meet the requirements for tax reduction or exemption; if they fail to pay the tax according to law, tax authorities shall pursue tax payment. Article 44 Tax authorities may, in line with the principles of being conducive to taxation control and making it as easy as possible for taxpayers to pay tax and according to relevant provisions of the State, entrust related units or individuals with collection of small, scattered, or outside-of-the-locality tax payment and shall issue to such units or individuals a certificate for tax collection. The entrusted units or individuals shall collect tax lawfully in the name of the tax authorities pursuant to the requirement as stipulated in the certificate, and taxpayers shall on no account refuse to pay tax. In case of refusal by any taxpayer, the entrusted unit or individual shall report without delay to the tax authorities. Article 45 Tax payment vouchers mentioned in Article 34 of the Law on the Administration of Tax Collection refers to various types of tax payment receipts, letters of tax remittance, duty stamps, tax withholding (collection) receipts and other vouchers of tax payment. Unless appointed by tax authorities, no unit or individual is allowed to print any kind of tax payment voucher. Tax payment vouchers shall not be lent, resold, altered or forged. The sample of tax payment vouchers and the relevant administrative measures shall be determined by the State Administration of Taxation. Article 46 Tax authorities shall, upon receipt of tax, issue a tax payment voucher to the taxpayer. If the taxpayer pays tax through banks, tax authorities may entrust the bank with the issuance of the tax payment voucher. Article 47 Where the taxpayer falls into any of the circumstances listed in Article 35 or 37 of the Law on the Administration of Tax Collection, tax authorities shall be entitled to the right of assessing its amount of tax payable in any of the following methods: (1) referring to the tax burden of other local taxpayers engaged in the same or similar business on a similar scale and with a similar income; (2) according to the method of business income or cost plus rational expenses and profit; (3) calculating or reckoning on the basis of raw materials, fuels, power and others consumed; or (4) by adopting any other reasonable method. In case it is not adequate to correctly assess the amount of tax payable by adopting one of the above-mentioned methods, two or more methods may be adopted simultaneously. In case the taxpayer objects to the amount of tax payable assessed by tax authorities by adopting the methods as prescribed in this Article, it shall provide relevant evidence to tax authorities for recognition, upon which adjustment shall be made to the amount of tax payable. Article 48 Tax authorities are responsible for grading taxpayers' compliance credit. The method for grading compliance credit shall be formulated by the State Administration of Taxation. Article 49 Any contractor or lessee who is independent in both production or business operation and financial accounting and who regularly pays contracting fees or rental to the contract issuer or the lessor shall pay tax on its receipts and income from production or business operation and accept the tax administration, except as otherwise provided by laws or administrative rules or regulations. The contract issuer or lessor shall, within 30 days from the date of issuance of contract or leasing, report the information about the contractor or lessee to the competent tax authorities. Otherwise, the contract issuer or the lessor shall assume the joint and several tax liabilities with the contractor or lessee. Article 50 Taxpayers shall report to the competent tax authorities before liquidation in case of dissolution, cancellation or bankruptcy. The competent tax authorities shall participate in the liquidation in case the tax payment is not settled. Article 51 The associated enterprises mentioned in Article 36 of the Law on the Administration of Tax Collection refer to companies, enterprises or other economic entities that have one of the following relationships: (1) direct or indirect ownership or control of each other in relation to capital, business operation, purchase, sale, etc; (2) direct or indirect ownership or control of both or all by a third party; or (3) other associated relationships in terms of interest. Taxpayers have an obligation to provide the local tax authorities with information on prices, expenditure standard and others concerning business transactions with their associated enterprises. The specific measures shall be formulated by the State Administration of Taxation. Article 52 Business transactions between independent enterprises as mentioned in Article 36 of the Law on the Administration of Tax Collection refer to business transactions between enterprises with no associated relationship at fair market prices and following normal business practice. Article 53 The taxpayer may propose to the competent tax authorities a pricing principle and calculation method for business transactions with its associated enterprises. The competent tax authorities may, after examination and approval, agree upon the items of pricing with the taxpayer in advance and supervise over the implementation. Article 54 Tax authorities may adjust the taxpayer's amount of tax payable in one of the following situations in business transactions between the taxpayer and its associated enterprises: (1) purchases and sales are not priced according to business transactions between independent enterprises; (2) the interest paid to or charged by the financing enterprise is over or below the amount acceptable for enterprises with no associated relationships, or the interest rate adopted is higher or lower than the normal rate for the same type of business; (3) charge for service is not collected or paid as it normally occurs between independent enterprises; (4) business transactions such as transfer of property or provision of right to use property are not priced or charges are not collected or paid as they should be in business transactions between independent enterprises; or (5) other circumstances where business transactions are not priced in accordance with the normal practice between independent enterprises. Article (1) according to the price for the same or similar business transactions between independent enterprises; (2) according to the level of income and profit obtainable on the basis of the resale price to a non-associated third party; (3) according to the method of cost plus reasonable expenses and profit; or (4) according to other appropriate methods. Article 56 When payment or receipt of prices or charges in business transactions between a taxpayer and its associated enterprise is not made as it should be with business transactions between independent enterprises, the tax authorities shall make adjustment, within three years after the first tax year for such transactions, or under special circumstances within ten years after the first tax year for such transactions. Article 57 Taxpayers engaged in production or business operation without completing formalities for tax registration as mentioned in Article 37 of the Law on the Administration of Tax Collection include those conducting production or business operation in another county (city) without reporting to local tax authorities for registration. Article 58 The taxpayer shall pay tax within 15 days from the date when the tax authorities impound its commodities or goods in accordance with Article 37 of the Law on the Administration of Tax Collection. As for the impounded commodities or goods which are live and fresh, apt-decaying or easy-deactivating, the tax authorities may shorten the impounding time set forth in the preceding paragraph. Article 59 Other property mentioned in Articles 38 and 40 of the Law on the Administration of Tax Collection include immovables and movables such as real estate, cash and marketable securities. Motor vehicles, gold and silver ornaments, curios calligraphies and paintings, luxurious residential buildings or houses other than the one necessary for living do not fall into the scope of articles and dwelling houses necessary to support the individual and its dependent family members as mentioned in Articles 38, 40 and 42 of the Law on the Administration of Tax Collection. Tax authorities shall not adopt tax preservative measures and compulsory enforcement measures on other household goods with the unit price below 5,000 yuan. Article 60 Family members supported by a taxpayer as stated in Articles 38, 40 and 42 of the Tax Administration and Collection Law shall refer to the taxpayer's living-together spouse, lineal relatives and other relatives without living sources and supported by the taxpayer. Article 61 The guaranty mentioned in Articles 38 and 88 of the Law on the Administration of Tax Collection includes the suretyship for tax payment provided for a taxpayer by a surety approved by tax authorities, and the guaranty provided with the taxpayer's or a third party's property which has not been provided or entirely provided as guaranty. The tax payment surety refers to any natural person, legal person or other economic entity within the Chinese territory that is able to provide guaranty for tax payment. Any unit or individual without guaranty qualifications prescribed by laws or administrative rules or regulations is not allowed to serve as a tax payment guarantor. Article In case a taxpayer or a third party provides a guaranty for tax payment with its property, a detailed list of property shall be filled in, indicating the value of the property and other relevant issues. The detailed list of property provided as guaranty for tax payment shall be valid only after it is signed and stamped by the taxpayer or the third party and confirmed by tax authorities. Article 63 When impounding or sealing up commodities, goods or other property, tax authorities shall have two or more officials present on the site and notify the person subject to enforcement. In case the person subject to enforcement is a natural person, he or an adult member of his family shall be notified to be present; in case the person subject to enforcement is a legal person or other organization, its legal representative or principal responsible officer shall be notified to be present. Any refusal of presence shall not affect the enforcement. Article 64 When impounding or sealing up commodities, goods or other property with an equivalent value to the amount of tax payable, in accordance with the provisions of Article 37, 38 or 40 of the Law on the Administration of Tax Collection, tax authorities shall estimate the value with reference to the market price, ex-factory price or evaluated price of the like commodities. Tax authorities, when defining the value of the commodities, goods or other property according to the preceding paragraph, shall have the surcharge on tax in arrears and expenses for impounding, sealing up, keeping, auctioning and selling off them included. Article 65 Tax authorities may impound, seal up or auction as a whole the inseparable commodities, goods or other property with a value exceeding the amount of tax payable in case the taxpayer, tax withholding agent or tax payment guarantor has no other property available for compulsory enforcement, and use the proceeds from the auction to offset the tax, surcharge on tax in arrears, penalties and expenses of impounding, sealing up, keeping and auction and so on. Article Article 67 Tax authorities may instruct the person subject to enforcement to take care of the sealed-up commodities, goods or other property, and the safekeeping responsibility shall be borne by the person subject to enforcement. In case the continuous use of the sealed-up property does not cause reduction of its value, tax authorities may allow the person subject to enforcement to continuously use it; the person subject to enforcement shall bear any loss to the property resulting from its fault in the course of safekeeping or use. Article Article The remaining part of the income from auction or sales after deducting the tax payable, surcharge on tax in arrears, penalties and expenses for the impounding, sealing up, keeping, auction, sales and so on shall be returned to the taxpayer within three days. Article 70 The loss as mentioned in Articles 39 and 43 of the Law on the Administration of Tax Collection refers to the direct loss incurred to the legitimate rights and interests of the taxpayer, tax withholding agent or tax payment guarantor as a result of liability of tax authorities. Article 71 Other financial institutions as mentioned in the Law on the Administration of Tax Collection refer to trust and investment companies, credit cooperatives, post savings offices and other financial institutions approved by the People's Bank of China,
the China Securities Regulatory Commission or other authorities. Article 72 Deposit as mentioned in the Law on the Administration of Tax Collection includes savings deposits by investors of individual proprietorship enterprises, partners of partnership enterprises and individual businesses, funds in the shareholder's capital account, etc. Article Article Article 75 The time period for imposing surcharge on tax in arrears as prescribed in Article 32 of the Law on the Administration of Tax Collection starts with the second day from the expiration date for tax payment specified by laws or administrative rules or regulations, or determined by tax authorities pursuant to provisions of laws or administrative rules or regulations, and ends with the day on which the taxpayer or tax withholding agent actually pays or remits the tax. Article 76 Tax authorities at or above the county level shall regularly make proclamations concerning the overdue tax unpaid by taxpayers at the site of tax collection or through media such as radio, television, newspapers, periodicals or computer network, etc. Specific measures for such regular proclamation shall be formulated by the State Administration of Taxation. Article 77 The relatively large amount of overdue tax mentioned in Article 49 of the Law on the Administration of Tax Collection refers to an amount of overdue tax of not less than 50,000 yuan. Article 78 Tax authorities shall refund the overpaid tax to the taxpayer within ten days from the date of their discovery, or verify and refund the overpaid tax within 30 days from the date of receiving the taxpayer's application for refund in case of the taxpayer's discovery. The tax refund with interest at the deposit interest rate of the corresponding period of the bank as prescribed in Article 51 of the Law on the Administration of Tax Collection does not include the refund at final tax settlement upon the tax prepaid according to law, or for exportation or tax reductions and exemptions. Interest of the tax refund shall be calculated at the current deposit interest rate set by the People's Bank of China on the day when tax authorities undertake the procedure for tax refund. Article Article 80 The liability of tax authorities as mentioned in Article 52 of the Law on the Administration of Tax Collection refers to the improper application of tax laws or administrative rules or regulations or illegal activity in law enforcement by tax authorities. Article 81 The miscalculation or other errors by the taxpayer or tax withholding agent as mentioned in Article 52 of the Law on the Administration of Tax Collection refers to the unintentional misapplication of calculation formula or apparent clerical errors. Article 82 The special circumstances mentioned in Article 52 of the Law on the Administration of Tax Collection refer to the cases where the due tax unpaid or underpaid, not withheld or less withheld, not collected or less collected accumulates to an amount of not less than 100,000 yuan on account of the miscalculation or other errors by the taxpayer or tax withholding agent. Article 83 The time limit for making up the shortage in tax payment or pursuing tax payment or surcharge on tax in arrears as prescribed in Article 52 of the Law on the Administration of Tax Collection starts from the day when the taxpayer or tax withholding agent fails to pay the due tax or underpays tax, or fails to remit the due tax or remits less tax. Article Tax authorities shall, within 30 days from the date of receiving the letter of decision or opinion, give a written reply concerning the implementation to the auditing or fiscal authorities. The relevant authorities shall not at their own discretion collect or remit to the state treasury, or dispose or occupy in any other name any tax or surcharge on tax in arrears discovered in the process of their duty execution. Chapter VI Tax Inspection Article 85 Tax authorities shall establish a scientific inspection system, make overall plans and arrangements for tax inspections, and impose strict controls on the frequency of tax inspections to taxpayers or withholding agents. Tax authorities shall work out a reasonable guideline for tax inspections, in which the functions and duties of officials respectively in charge of case selection, inspection, hearing or execution shall be clearly defined and separated for mutual check in order to standardize the case selection procedures and tax inspection. Specific measures for tax inspections shall be formulated by the State Administration of Taxation. Article 86 Tax authorities may exercise their duties and powers set forth in Item 1 of Article 54 of the Law on the Administration of Tax Collection at the business site of the taxpayer or withholding agent. If necessary, tax authorities may, upon approval of the commissioner of the tax bureau (sub-bureau thereof) or office at or above the county level, take back for inspection the taxpayer's or withholding agent's accounting books, accounting vouchers, financial statements and other relevant materials of previous accounting years. Tax authorities shall, however, provide the taxpayer or withholding agent with a list of the documents taken back and return them sound and complete within three months. In case of special circumstances, tax authorities may, upon approval of the commissioner of the tax bureau or office at or above the city with districts or autonomous prefecture level, take back for inspection the taxpayer's or withholding agent's accounting books, accounting vouchers, financial statements and other relevant materials of the current accounting year, but shall return them within 30 days. Article 87 Tax authorities shall, when exercising their duties and powers set forth in Item 6 of Article 54 of the Law on the Administration of Tax Collection, designate specific persons for the responsibility, carry out the inspection on the strength of the nationally unified permit for deposit account inspection, and shall have the obligation of keeping confidential the information about the person under inspection. The permit for deposit account inspection shall be formulated by the State Administration of Taxation. Items to be inspected by tax authorities include balance of the taxpayer's deposit account and capital flow. Article Article 89 Tax authorities and tax officials shall exercise their duties and powers for tax inspection in accordance with the provisions of the Law on the Administration of Tax Collection and these Rules. Tax officials shall present the tax inspection identity card and notice of tax inspection when conducting tax inspections. Taxpayers, withholding agents or other persons involved have the right to reject inspection in case tax officials intend to conduct tax inspection without such card and notice. In case of tax inspection to markets and fairs and concentrated businesses, tax authorities may use the unified notice of tax inspection. The State Administration of Taxation shall determine the format of the tax inspection identity card and the notice of tax inspection and formulate the specific measures for the use and administration of them. Chapter VII Legal Liabilities Article 90 Where a taxpayer fails to go through the formalities for inspection or replacement of the tax registration certificate according to the provisions, the tax authorities shall order the taxpayer to make corrections within a time limit, and may impose a penalty of not more than 2,000 yuan; where the circumstances are serious, a penalty of not less than 2,000 yuan but not more than 10,000 yuan shall be imposed. Article 91 Where anyone illegally prints, lends, resells, alters or forges tax payment vouchers, the tax authorities shall order it to make corrections and impose a penalty of not less than 2,000 yuan but not more than 10,000 yuan, or, where the circumstances are serious, not less than 10,000 yuan but not more than 50,000 yuan. In case a crime is constituted, criminal liability shall be investigated. Article 92 Where banks or other financial institutions fail to record the number of the tax registration certificate in the bank accounts of the taxpayer engaged in production or business operation, or fail to record the bank account numbers in the tax registration certificate of the taxpayer engaged in production or business operation in accordance with the provisions of the Law on the Administration of Tax Collection, the tax authorities shall order them to make corrections within a time limit and impose a penalty of not less than 2,000 yuan but not more than 20,000 yuan, or, where the circumstances are serious, not less than 20,000 yuan but not more than 50,000 yuan. Article 93 Where anyone illegally provides bank accounts, invoices, certificates or other convenience to taxpayers or tax withholding agents with a result of non-payment or underpayment of tax or fraudulently obtaining tax refund for exportation, the tax authorities may, apart from confiscating the illegal income, impose a penalty of not more than one time the amount of tax unpaid or underpaid, or of tax refund fraudulently obtained. Article 94 Where a taxpayer refuses to have its tax withheld or collected by the tax withholding agent, the tax withholding agent shall report to the tax authorities, which shall be responsible for collecting the tax payable and surcharge on tax in arrears directly from the taxpayer. In case the taxpayer rejects such payment, the provisions of Article 68 of the Law on the Administration of Tax Collection shall apply. Article 95 Where tax authorities inspect taxpayers at stations, docks, airports, postal enterprises or branches thereof in accordance with the provisions of Item 5 of Article 54 of the Law on the Administration of Tax Collection, if such inspection is rejected by relevant units, the tax authorities shall order them to make corrections, and may impose a penalty of not more than 10,000 yuan; where the circumstances are serious, a penalty of not less than 10,000 yuan but not more than 50,000 yuan shall be imposed. Article (1) providing false information, not reporting according to facts, or refusing to provide relevant information; (2) rejecting or preventing tax authorities from taking notes, tape-recording, video-recording, photographing or copying the situations or materials related to the case under investigation; (3) transferring, concealing or destroying the relevant information by the taxpayer or tax withholding agent during the period of inspection; or (4) other circumstances of not accepting tax inspection according to law. Article 97 Where tax officials divide privately the impounded or sealed-up commodities, goods or other property, and the circumstances are so serious as to constitute a crime, they shall be investigated for criminal liability according to law. If the circumstances are not serious enough to constitute a crime, administrative penalties shall be imposed upon them according to law. Article 98 Where a tax withholding agent violates tax laws or administrative rules or regulations, which results in a non-payment or underpayment of tax by the taxpayer, the taxpayer shall pay or make up the shortage in payment of tax or surcharge on tax in arrears and a penalty of not less than 50 percent but not more than 3 times of the amount unpaid or underpaid by the taxpayer shall be imposed upon the tax withholding agent. Article 99 Tax authorities shall issue receipts when imposing a penalty upon or confiscating the illegal income of the taxpayer, tax withholding agent or other persons involved. Otherwise, the taxpayer, tax withholding agent or other persons involved shall have the right to refuse. Article 100 The dispute over tax payment as mentioned in Article 88 of the Law on the Administration of Tax Collection refers to the dispute arising from the taxpayer, tax withholding agent or tax payment guarantor over such specific administrative acts by tax authorities as determining the subject of tax payment, target of tax collection, scope of tax collection, tax reduction and exemption, tax refund, applicable tax rate, base of tax assessment, stages of tax payment, period and place of tax payment, means of tax levying, etc. Chapter VIII Service of Documents Article 101 Tax authorities shall serve taxation documents directly on recipients. Where the recipient is a citizen, the document shall be delivered to his own reception against his signature. Where the recipient is absent, the document shall be delivered against signature to the reception of his adult family member living together. Where the recipient is a legal person or an other organization, the document shall be delivered against signature to the reception of the legal representative of the legal person, the principal responsible person of the organization, or the responsible person of finance or the person specifically responsible for reception of documents or letters of the legal person or the organization. In case the recipient has an agent, the document may be delivered to the agent's reception against signature. Article 102 There shall be a return of service for the taxation documents served. The return of service shall bear the date of reception and the signature or stamp by the recipient or other persons as specified in these Rules for reception against signature, upon which service shall be deemed completed. Article 103 Where the recipient or any of the other persons as specified in these Rules for reception against signature refuses to sign for reception of the taxation document, the person who delivers the document shall, on the return of service, specify the reason for refusal and state the date, affix the signature or stamp of himself and the witness to the return of service, and leave the taxation document with the recipient, upon which service shall be deemed completed. Article 104 Where there is difficulty in a direct service of taxation documents, tax authorities may entrust other relevant authorities or units with the service, or send them by mail. Article 105 Where taxation documents are served directly or through entrustment, the date of service shall be the date when the recipient or witness signs or specifies for reception on the return of service. In case the documents are served by mail, the date of service shall be the date of reception specified on the receipt of the registered mail, with the service being deemed completed. Article 106 Tax authorities may serve taxation documents by a public notice under any of the following circumstances and the service shall be deemed completed after 30 days of the public notice: (1) the document is to be served on numerous recipients; or (2) the document cannot be served through other means of service specified in this chapter. Article 107 The format of taxation documents shall be determined by the State Administration of Taxation. The taxation documents mentioned in these Rules include: (1) letter of notification of taxation issues; (2) letter of notification of rectification within a prescribed time limit; (3) letter of decision for tax preservative measures; (4) letter of decision for compulsory taxation enforcement; (5) letter of notification of tax inspection; (6) letter of decision for tax disposition; (7) letter of decision of tax administrative penalty; (8) letter of decision of administrative reconsideration; and (9) other taxation documents. Chapter IX Supplementary Provisions Article 108 The terms "not less than", "not more than", "within …days" and "expires" as mentioned in the Law on the Administration of Tax Collection and these Rules shall all include the given figure. Article Article 110 The commissions for withholding or entrusted collection of tax as prescribed in Paragraph 3 of Article 30 of the Law on the Administration of Tax Collection shall be included in the budget and paid by tax authorities to the withholding agent in accordance with the provisions of laws and administrative rules or regulations. Article 111 The measures for taxpayers or tax withholding agents to entrust tax agents with taxation matters shall be formulated by the State Administration of Taxation. Article 112 The collection and administration of Cultivated Land Occupation Tax, Deed Tax, Agriculture Tax and Animal Husbandry Tax shall be subject to the relevant provisions of the State Council. Article 113 These Rules shall be effective as of October 15, 2002. The Rules for the Implementation of the Law of the People's Republic of (State Council)
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