Chapter IV Tax Filing

Article 30Tax 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 31Taxpayers 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 32Taxpayers 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 33Tax 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 34Taxpayers 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 35Tax 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 36Taxpayers paying tax periodically at a fixed amount may file tax returns in a simpler way and by combining tax payment periods.

Article 37Taxpayers 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 38Tax 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 39Tax 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 40Tax 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 41Special 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 42Taxpayers 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 43Taxpayers 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 44Tax 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 45Tax 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 46Tax 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 47Where 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 48Tax authorities are responsible for grading taxpayers' compliance credit. The method for grading compliance credit shall be formulated by the State Administration of Taxation.