|
State Food and Drug Administration
Order of the State Food and Drug Administration
No.6
The Measures for the Administration of Pharmaceutical Trade License, deliberated and adopted at the executive meeting of the State
Food and Drug Administration on January 2, 2004, are hereby promulgated, and shall be implemented as of April st, 2004.
Zheng Xiaoyu, Director General of the State Food and Drug Administration
February 4th, 2004
Measures for the Administration of Pharmaceutical Trade License
Chapter I General Provisions
Article 1
With a view to strengthening supervision over and administration of the licensing of pharmaceutical trading, the present Measures
are hereby formulated in accordance with the Pharmaceutical Administration Law of the People’s Republic of China, the Regulations
on the Implementation of the Pharmaceutical Administration Law of the People’s Republic of China (hereinafter referred to as the
Pharmaceutical Administration Law, and Regulations on the Implementation of the Pharmaceutical Administration Law),
Article 2
The present Measures shall be applicable to the license issuance, renewal, alteration and supervision over and administration of Pharmaceutical
Trade License.
Article 3
The State Food and Drug Administration shall be in charge of the supervision over and administration of the licensing of national
pharmaceutical trading.
The departments of food and drug administration of the provinces, autonomous regions, and municipalities directly under the Central
Government shall be responsible for license issuance, renewal, alteration, and routine supervision over and administration of Pharmaceutical
Trade License of pharmaceutical wholesale enterprises within their respective jurisdictions, and shall direct and supervise the lower
level organs of food and drug administration on carrying out the supervision over and the administration of Pharmaceutical Trade
License.
The organs of food and drug administration at the level of cities with districts under them or those at the county level which are
set up directly by the departments of food and drug administration at the levels of provinces, autonomous regions, and municipalities
directly under the Central Government, shall be responsible for the work of license issuance, renewal, alteration and routine supervision
over and administration of Pharmaceutical Trade License of drug retail enterprises within their respective jurisdictions.
Chapter II Conditions for Applying for the Drug Business License
Article 4
In accordance with the provisions of Article 14 of the Pharmaceutical Administration Law, where a pharmaceutical wholesale enterprise
launches, it shall conform to the requirements for the reasonable overall arrangement for pharmaceutical wholesale enterprises of
provinces, autonomous regions, and municipalities directly under the Central Government for its establishment, and shall measure
up to the following standards for establishment:
1.
Having rules and regulations that can ensure the quality of drugs it deals in.
2.
The enterprise, the legal representative, responsible person, or the person responsible for quality control of the enterprise has
no circumstances as prescribed in Articles 76 and 83 of the Pharmaceutical Administration Law;
3.
Having a certain number of practicing apothecaries in line with its business scale. The person responsible for quality control shall
have a bachelor’s degree or above, and shall be a practicing apothecary as well;
4.
Having normal temperature warehouses, cool warehouses or refrigerators, which can ensure the quality requirements for pharmaceutical
storage and can fit in with its variety and scale of business, and in which there shall be special goods shelves for pharmaceutical
storage, and the installations and equipment of modern logistic system for the pharmaceuticals’ entering a warehouse, transmission,
sorting out, putting on shelves, and leaving a warehouse..
5.
Having independent computer management information system, which can cover the whole process of the pharmaceutical purchase, storage,
sale, and management and quality control within the enterprise, and can record all the information on the management and implementation
of the Standards for Quality Control of Pharmaceutical Trading of the enterprise; meeting the requirements of Standards for Quality
Control of Pharmaceutical Trading for each process of pharmaceutical management, and having conditions for accepting supervision
of the local departments or organs for food and drug administration; and
6.
Having conditions of conforming to the requirements of the Standards for Quality Control of Pharmaceutical Trading for pharmaceutical
business office, auxiliary and office buildings, and warehouse management, quality safeguards for pharmaceuticals in the warehouse,
and the entry-exit of warehouse, in-warehouse storage and maintenance.
Unless there are otherwise state provisions on management of stupefacient, psychotropic drugs, toxic drugs for medical treatment,
and preventive biological produce, those provisions shall prevail.
Article 5
The establishment of a pharmaceutical retail enterprise shall conform to the requirement of the number of local permanent residents,
regions, traffic status and actual needs, and follow the principle of convenience for the mass people to purchase pharmaceuticals,
and accord with the following provisions on establishment:
1.
Having rules and regulations that can ensure the quality of pharmaceuticals it deals in; and
2.
Having pharmaceutical technical personnel whose qualifications have been certified in jure.
A pharmaceutical retail enterprise, which undertakes the trading of prescriptive pharmaceuticals, or Class A non-prescriptive pharmaceuticals
(OTC), shall have practicing apothecaries or other pharmaceutical technical personnel whose qualifications have been certified in
jure. The person responsible for quality control shall have work experiences of quality control for pharmaceutical trading for no
less than one year.
A pharmaceutical retail enterprise, which undertakes the trading of Class B non-prescriptive pharmaceuticals (OTC), and the pharmaceutical
retail enterprises established in areas below the rural villages and towns, shall recruit business personnel according to Article
15 of the Regulations on the Implementation of the Pharmaceutical Administration Law, and the practicing apothecaries shall also
be recruited as long as conditions permit:
The aforesaid personnel shall be on the job during the business hours of the enterprise.
3.
The enterprise, legal representative, responsible person or person responsible for quality control of the enterprise has no circumstances
as prescribed in Articles 76 and 83 of the Pharmaceutical Administration Law;
4.
Having the places of business, equipment, warehouse facilities and sanitary conditions fitting in with the pharmaceuticals it deals
in. Where a retail pharmaceutical store is established in the supermarkets or within other commercial enterprises, it must have an
independent area; and
5.
Having abilities of supplying drugs that can meet the demand of local consumers, and ensuring the 24-hour supply. The departments
of food and drug supervision and administration of all provinces, autonomous regions, and municipalities directly under the Central
Government shall, according to the specific circumstances of the local regions, determine the variety and quantity of state basic
pharmaceuticals that shall be stocked by the pharmaceutical retail enterprises.
Unless there are otherwise state provisions on management of stupefacient, psychotropic drugs, toxic drugs for medical treatment,
and preventive biological produce, those provisions shall prevail.
Article 6
The formulation of implementation standards for checking and accepting the establishment of pharmaceutical wholesale enterprises shall
remain with the State Food and Drug Administration. The implementation standards for checking and accepting the establishment of
drug retail enterprises shall be formulated by the departments of food and drug administrations of the provinces, autonomous regions
and municipalities directly under the Central Government in accordance with the relevant contents of the present Measures and the
Standards for Quality Control of Pharmaceutical Trading, and shall be reported to the State Food and Drug Administration for archival
document.
Article 7
The checking and ratifying of the business scope of the pharmaceutical trading enterprises:
The business scope of pharmaceutical trading enterprises shall cover:
stupefacient, psychotropic drugs, and toxic drugs for medical treatment;
Biological produce;
Chinese traditional medicinal materials; Chinese traditional medicine drink pills; Chinese patent medicines, chemical material medicines
and their preparations; antibiotic material medicines and their preparations, biological and chemical medicines.
Where the enterprises undertake pharmaceutical retail, their class of business shall be checked and ratified, the applicants’ qualifications
of managing the prescriptive pharmaceuticals or non-prescriptive pharmaceuticals or Class B non-prescriptive pharmaceuticals shall
be determined first, and after the aforesaid has been clarified in their business scope, the specific scope of business shall be
checked and ratified.
The checking and ratifying of toxic drugs for medical treatment, stupefacient, psychotropic drugs, radioactive drugs and preventive
biological products shall be carried out according to the relevant state provisions on the administration of special pharmaceuticals
and preventive biological products.
Chapter III The Procedures for Applying for the Pharmaceutical Trade License
Article 8
The Pharmaceutical Trade License for opening a pharmaceutical wholesale enterprise shall be handled according to the procedures as
follows:
1.
The applicant shall file an application for preparing to establish such an enterprise with the departments of food and drug administration
of the provinces, autonomous regions, and municipalities directly under the Central Government at the place where the enterprise
to be established is located, and submit the following documents:
(1)
The original and photocopy of the certificate of educational backgrounds and personal resumes of the legal representatives, persons
responsible, and persons responsible for quality control of the enterprise to be established;
(2)
The original and photocopy of the practising license of the practicing apothecary;
(3)
The scope of pharmaceuticals to be dealt in; and
(4)
The place of business, equipment, warehouse establishments to be established and the sanitary conditions around, etc.
2.
The departments of food and drug administration shall handle the applications filed by an applicant separately according to the circumstances
as follows:
(1)
Where the matters applied for do not fall within the scope of the functions and powers of the corresponding departments, they shall
make a decision of not acceptance in time, and issue the Notice of Not Acceptance, and inform the applicant to apply to the relevant
departments of food and drug administration;
(2)
Where there is any mistake in application documents, and the mistake can be corrected on the spot, the applicant shall be permitted
to correct it on the spot;
(3)
Where the application documents are incomplete or don’t measure up to legal forms, the applicant shall be issued the Notice to Supplement
the Documents on the spot or within 5 days, and be informed to supplement the whole documents needed in one time. Where they fail
to inform the applicant within the prescribed time limit, the date of their receiving the application documents shall be deemed as
the date of acceptance; and
(4)
Where the matters applied for fall within the scope of functions and powers of the corresponding departments, and the documents thereof
are complete and conforming to the legal form, or the applicant has submitted all the supplementary documents as required, the Notice
of Acceptance shall be issued to the applicant. And the date indicated in the Notice of Acceptance shall be deemed as the date of
acceptance.
3.
The departments of food and drug administration shall, within 30 working days as of the date of accepting the application, make an
examination of the documents submitted according to the provisions of Article 4 of the present Measures, and make a decision on
whether or not to agree with the preparation for establishment, and notify the applicants in writing. Where they don’t agree with
the preparation for establishment, they shall explain the reason, and notify the applicants of their rights of applying for administrative
reconsideration or institute an administrative litigation in jure.
4.
After an applicant has finished the preparation for establishment, it shall submit an application for checking to the departments
of food and drug administration that accept the application, and submit the following documents:
(1)
Application for Pharmaceutical Trade License;
(2)
Documents of approval and certification issued by the departments for industry and commerce administration for the enterprise to be
established;
(3)
Organizational structure of the enterprise to be established;
(4)
Ground disposition plan of the places of business and warehouses, and certificates of the ownership of or right to use the houses;
(5)
Qualification certificates and letter of appointment of the special technical personnel in pharmacy certified in jure; and
(6)
The quality control documents of the enterprise to be established and the indexes of the warehouse establishments and facilities thereof.
5.
The departments of food and drug administration accepting the application shall, within 30 working days from the date of receiving
the application for checking, organize the checking according to the implementation standards for checking and accepting the establishment
of pharmaceutical wholesale enterprises, make decisions on whether or not to issue the Pharmaceutical Trade License. Those enterprises
meeting the requirements shall be issued the Pharmaceutical Trade License; and as to those not meeting the requirements, the applicants
shall be notified in writing and the reason shall be explained, and they shall be informed of the rights of applying for administrative
reconsideration or instituting an administrative litigation in jure.
Article 9
The Pharmaceutical Trade License for opening a pharmaceutical retail enterprise shall be handled according to the procedures as follows:
1.
The applicant shall file an application for preparing the establishment to the food and drug administrative organs at the level of
cities with districts under them where the enterprise to be established is located or to those of the county level established directly
by the departments of food and drug administration of provinces, autonomous regions, and municipalities directly under the Central
Government, and submit the following documents:
(1)
The originals or photocopies of the educational background, qualifications to practice or certificates of post_title of a technical post
of the legal representative, person in charge, person responsible for quality control of the enterprise to be established, and their
personal resumes and qualification certificates and letter of appointment of the special technical personnel;
(2)
The scope of pharmaceuticals to be dealt in; and
(3)
The conditions of the place of business, warehouse facilities and equipment to be established.
2.
The food and drug administrative organs shall handle the application of an applicant separately according to the following conditions:
(1)
Where the matters applied for do not fall within the scope of functions and powers of the corresponding departments, they shall make
decisions of not acceptance immediately, issue the Notice of Not Acceptance, and inform the applicant to apply to the relevant departments
of food and drug administration;
(2)
Where there is any mistake in the application documents, and it can be corrected on the spot, the applicant shall be permitted to
do it on the spot;
(3)
Where the application documents are incomplete or do not measure up to the legal form, they shall issue the Notice for Supplementing
the Documents to the applicants on the spot or within 5 days, and inform them of the whole contents to be supplemented in one time.
If they fail to inform the applicants within the prescribed time limit, the date of receiving the application documents shall be
deemed as the date of acceptance; and
(4)
Where the matters applied for fall within the scope of functions and powers of the corresponding departments, and the documents thereof
are complete and conforming to the legal form, or the applicant has submitted all the supplementary documents as required, the Notice
of Acceptance shall be issued to the applicant. And the date indicated in the Notice of Acceptance shall be deemed as the date of
acceptance.
3.
The departments of food and drug administration shall, within 30 working days from the date of accepting the application, make an
examination of the documents submitted according to the provisions of Article 5 of the present Measures, and decide whether or not
to agree with the preparation for establishment, and notify the applicant in writing. If they disagree, they shall explain the reason,
and notify the applicants of their rights of applying for administrative reconsideration or instituting an administrative litigation
in jure.
4.
After the applicant has finished the preparation for establishment, it shall file an application for checking to the departments of
food and drug administration that accept the application, and submit the following documents:
(1)
Application for Pharmaceutical Trade License;
(2)
Documents of approval and certification issued by the departments for industry and commerce administration for the enterprise to be
established;
(3)
Ground disposition plan of the places of business and warehouses, and the certificates of the ownership of or right to use the houses;
(4)
Qualification certificates and letter of appointment of the special technical personnel in pharmacy certified in jure; and
(5)
The quality control documents of the enterprise to be established and the indexes of the warehouse establishments and facilities thereof.
5.
The food and drug administrative organs accepting the application shall, within 15 working days as of the date of receiving the checking
application, organize a checkup in light of the implementation standards for checking and accepting the establishment of pharmaceutical
retail enterprises, and make decisions on whether or not to issue the Pharmaceutical Trade License. Where the enterprises fail to
meet the conditions, the applicants shall be notified in writing of the reason, and meanwhile shall be informed of their rights of
applying for administrative reconsideration or instituting an administrative litigation in jure.
Article 10
Where the departments or organs of food and drug administration find out that the matters of administrative license of an applicant
concern directly the major interests of other people when making an examination of its application, they shall notify the interested
party. The acceptance departments shall hear the statement and pleadings of the applicant or the interested party. Where the matters
shall be dealt with through a hearing in jure, a hearing shall be held in light of the provisions of law.
Article 11
The departments or organs of food and drug administration shall publicize the relevant information on Pharmaceutical Trade License
they have issued, and the general public shall have the right to consult.
Where, after the publicity of the information, an enterprise is found to have acts of providing false documents, data or other deceptive
acts in the process of applying for the Pharmaceutical Trade License, it shall be punished in jure.
Article 12
The Pharmaceutical Trade License is the legal credence of an enterprise for its undertaking of pharmaceutical trade activities, no
entity or individual may forge, alter, deal, lease or lend it.
Chapter IV Alteration and Renewal of Pharmaceutical Trade License
Article 13
The alteration of the Pharmaceutical Trade License shall include the alteration of the license matters and alteration of registration
matters.
The alteration of license matters refers to the alteration of the means of operation, scope of business, place of registration and
warehouse (including increase or decrease of the warehouses), legal representatives, person in charge, and person responsible for
quality control of the enterprise.
The alteration of registration matters refers to changes on matters not mentioned in the aforesaid paragraphs.
Article 14
Where a pharmaceutical trading enterprise alters the license matters concerning the Pharmaceutical Trade License, it shall apply for
an alteration of registration on Pharmaceutical Trade License to the former organs for issuing license 30 days in advance. And no
license matters shall be altered without approval.
The former organs for issuing license shall, within 15 working days from the date of receiving the application for enterprise alteration
and alteration of the application documents, make a decision on whether or not to grant the alteration.
Where an enterprise applies for alteration of the license matters, the original license issuing departments may not handle the formalities
for alteration until they have checked and accepted the enterprise and confirmed its eligibility in light of the conditions as prescribed
in the present Measures.
After a pharmaceutical trading enterprise has made alteration on the license matters concerning the Pharmaceutical Trade License,
it shall go through the relevant alteration procedures for enterprise registration to the departments for industry and commerce administration
in jure.
Where an enterprise divides, merges, or changes its means of operation, or transfers exceeding the former jurisdictions, its Pharmaceutical
Trade License shall be handled anew in light of the provisions of the present Measures.
Article 15
Where a non-legal person branch of an enterprise legal person alters the license matters of the Pharmaceutical Trade License, it shall
show the alteration application with the opinions of the upper level legal person signed therein.
Article 16
Where an enterprise is put on records and investigated into by the departments or organs of food and drug administration for illegal
operation, and the case has not been concluded yet; or a decision of administrative punishment has been made but the punishment has
not been executed, the organs for issuing license shall suspend the acceptance of its application for alteration of the Pharmaceutical
Trade License.
Article 17
Where a pharmaceutical trading enterprise alters the registration matters of the Pharmaceutical Trade License, it shall, within 30
days after the alteration has been approved by the departments for industry and commerce administration, apply for alteration registration
on the Pharmaceutical Trade License to the former organs for issuing license, who shall then handle alteration formalities for it
within 15 working days from the date of receiving the application for enterprise alteration and alteration application documents.
Article 18
After the registration matters of the Pharmaceutical Trade License have been altered, the former organs for issuing license shall
record the contents and time for alteration in the duplicate of the Pharmaceutical Trade License, and change and issue anew the original
copy of the Pharmaceutical Trade License in light of the contents altered, and take back the original copy of the Pharmaceutical
Trade License. The period of validity of the altered Pharmaceutical Trade License shall remain unchanged.
Article 19
The period of validity of the Pharmaceutical Trade License shall be 5 years. If the license holding enterprises need to continue the
trading of pharmaceuticals at the expiration of the period of validity, they shall apply to the original license issuing enterprises
for a renewal of the Pharmaceutical Trade License within 6 months before the expiration of the period of validity. The former organs
for issuing license shall make examination in light of the conditions for application and establishment as prescribed in the present
Measures. If the requirements are met, they shall withdraw the original license and reissue a new one. If the requirements are not
met, they shall order the enterprises to rectify within a time limit of three months. And if the requirements are still not met after
the rectification, the original Pharmaceutical Trade License shall be written off.
The departments or organs of food and drug administration shall, upon the application of pharmaceutical management enterprises, make
decisions on whether or not to approve their renewal of licenses before the expiration of the period of validity of the Pharmaceutical
Trade License. If they fail to make decisions within the time limit, they shall be considered as having approved the renewal of license.
Chapter V Supervision and Inspection
Article 20
The departments or organs of food and drug administration shall strengthen the supervision and inspection over the enterprises holding
the Pharmaceutical Trade Licenses. And the enterprises holding the licenses shall accept the supervision and inspection in light
of the provisions of the present Measures.
Article 21
The contents of supervision and inspection shall mainly include:
1.
The name of the enterprise, business address, place of warehouses, legal representative or responsible person of the enterprise, person
responsible for quality control, means of operation, scope of business, the branches, and the implementation and alteration of other
important matters concerned;
2.
The alteration of the business establishments and equipment of the enterprise and the warehouses conditions;
3.
The implementation of the Standards for Quality Control of Pharmaceutical Trading by the enterprise; and
4.
Other relevant matters that the organs for issuing license need to examine.
Article 22
The supervision and inspection may be made by ways of inspection in written forms, on-the-spot inspection or the combination of the
two ways above-mentioned.
1.
The organs for issuing license may require the license holding enterprises to submit the relevant documents of the Pharmaceutical
Trade License, and perform their supervision functions through checking the relevant documents; or
2.
The organs for issuing license may make an on-the-spot inspection on the enterprises holding the license.
In case an enterprise is under any of the following circumstances, it shall be examined on the spot:
(1)
Newly established enterprises in the last year;
(2)
Enterprises having problems in the inspection of the last year;
(3)
Enterprises being imposed upon an administrative punishment for violating the relevant laws and regulations; or
(4)
Enterprises that should be examined on the spot as believed by the organs for issuing license.
The work for supervision and inspection and examination on license alteration may be carried out together in the same year as the
renewal of the Pharmaceutical Trade License.
Article 23
The standards for on-the-spot inspection on Pharmaceutical Trade License shall be formulated by the organs for issuing license according
to the implementation standards for checking and accepting the establishment of pharmaceutical wholesale enterprises and those of
pharmaceutical retail enterprises, and the certification and inspection standards of the Standards for Quality Control of Pharmaceutical
Trading, as well as the items for on-the-spot inspection, and shall be reported to the upper level departments (organs) of (food)
drug administration for archive documents.
Article 24
Where any business enterprise is found to have violated the requirements of the Standards for Quality Control of Pharmaceutical Trading
in the supervision and inspection, the organs for issuing license shall order it to rectify within a prescribed time limit. If an
enterprise violates the provisions of Article 16 of the Pharmaceutical Administration Law, and still fails to meet the requirements
for undertaking the pharmaceutical business activities after rectification, it shall be punished in light of the provisions of Article
79 of the Pharmaceutical Administration Law.
Article 25
Where an organ for issuing license makes supervision and inspection over pharmaceutical trading enterprises in jure, it shall record
the conditions of supervision and inspection and the conclusions of disposal, and put the records on archives after they have been
signed by the supervisors and inspectors. The general public shall have the right to consult the relevant records over supervision
and inspection. And the organs for issuing license shall record the conclusions for on-the-spot inspection on the duplicate of the
Pharmaceutical Trade License and publicize them.
Article 26
Under any of the following circumstances, the Pharmaceutical Trade License shall be written off by the former organs for issuing license:
1.
The Pharmaceutical Trade License fails to be renewed at the expiration of its period of validity;
2.
The pharmaceutical trading enterprise terminates the operation of drugs or is closed down;
3.
The Pharmaceutical Trade License is revoked, withdrawn, suspended, taken back, written off or invalidated;
4.
The license matters of the Pharmaceutical Trade License fail to be implemented due to force majeure; or
5.
Other circumstances that the administrative license shall be written off as prescribed by laws and regulations.
Where the departments or organs of food and drug administration write off the Pharmaceutical Trade License, they shall notify the
relevant departments for industry and commerce within 5 working days since the date of the writing-off.
Article 27
The Pharmaceutical Trade License shall include the original copies and duplicate copies, which shall have the same legal force.
Article 28
The organs for
|
the ministry of finance, the state administration of taxation
Notice of the Ministry of Finance and the State Administration of Taxation on Strictly Implementing the Standards for Expenses Exempted
from Individual Income Tax and Non-Taxable Items
CaiShui [2004] No.40
February 6, 2004
Finance offices or bureaus and administrations of local taxation of all provinces, autonomous regions, and municipalities directly
under the Central Government, and cities directly under state planning, and finance bureau of Xinjiang Production and Construction
s:
Recently, some regions have, in violation of tax laws and the national uniform provisions, increased the standard for expenses exempted
from “income from wages and salaries” of individual income tax without permission, and enlarged the application scope for non-taxable
items. These violations have breached the principle of administering taxation according to law, and are harmful for achieving uniform
tax policies, equitable tax burdens and normalized taxation systems, and have brought about very negative influence on the adjustment
of income distribution , the organization of the revenue from individual income tax, and the rectification and normalization of taxation
order. In order to implement the policy and strategy of managing state affairs according to law, and genuinely materialize the requirements
for administration by law, and maintain the seriousness, authority and unity of the tax law, we hereby give the following Notice
on issues concerning the regulation of the standard for expenses exempted from individual income tax and non-taxable items:
I.
To administer taxation according to law and unify tax policies is the embodiment of implementing the basic policy of managing state
affairs by law and administration by law, and is also an important measure for perfecting the system of socialist market economy,
and rectifying and regulating the order of market economy. As was pointed out in the Decision of the Central Committee of the Communist
Party of China on Some Issues Concerning the Improvement of the Socialist Market Economy, which was adopted by the third Plenary
Session of the 16th CPC Central Committee, efforts shall be made to enhance law enforcement and to improve the capabilities and levels
of administrative law enforcement, so as to guarantee the effective implementation of laws and regulations and to safeguard the unity
and dignity of the legal system. The Law of the People’s Republic of China on the Administration of Tax Collection and its detailed
implementation rules prescribe that “No departments, entities or individuals are permitted to make without authorization, by violating
laws or administrative regulations, decisions regarding the collection of tax or the cessation thereof, the reduction, exemption
or refund of tax, the payment of tax evaded or overdue or other decisions in conflict with tax laws or administrative regulations”.
“Any decision conflicting with the tax laws and administrative regulations, made by whatever department, entity or individual, is
void without exception, and the tax authorities shall not execute such a decision and shall report to the higher tax authorities.”
And the Individual Income Tax Law of the People’s Republic of China is the tax law formulated by the National People’s Congress,
and all the regions, departments, entities and individuals shall have the duty to maintain the seriousness, integrity and uniformity
of the Individual Income Tax Law consciously, and have no right to change the provisions of the tax law at will.
II.
For the ten years since the implementation of the existing Individual Income Tax Law. The construction of socialist market economy
of our country has seen great developments, and the conditions of national economy and individual income have changed greatly. As
a result, some provisions of the existing Individual Income Tax Law cannot fully meet the requirements for such developments and
changes, and indeed needs to be revised and further perfected according to the new changes. Therefore, the Central Committee of the
Communist Party of China and the State Council have attached high importance to it, and the requirement for “improving individual
income tax” has been put forward in the Decision of the Central Committee of the Communist Party of China on Some Issues Concerning
the Improvement of Socialist Market Economy, and on this basis the state legislative departments have listed the revision of Individual
Income Tax Law into the lawmaking plan. But, before the completion of the revision on Individual Income Tax Law, the existing provisions
must be abided by. No district, department or entity may be permitted to improve the standards for deduction of expenses for Individual
Income Tax without authorization of the National People’s Congress and the Standing Committee of the National People’s Congress,
nor shall they enlarge the application scope for non-taxable items in any disguised form or exceeding their power. According to the
state law for the administration on tax collection, all levels of taxation authorities shall not implement the provisions of documents
concerning the improvement of standard for expenses exempted from individual income tax without permission or enlarging the application
scope for non-taxable items by some regions in violation of the uniform policy, and the provisions having been implemented shall
be stopped.
III.
Since the implementation of the new taxation system in 1994, in order to meet the requirements for economic development and the continuous
deepening the reform of economic system, the Ministry of Finance and the State Administration of Taxation have, according to their
power for taxation administration, distributed documents concerning items exempt from individual tax. The policies prescribed in
these documents have clearly specified the contents, standards and application scope (object). The taxation authorities at all levels
shall strictly abide by the provisions as required in their implementation, and shall not enlarge the application scope (objects)
or improve standards without permission, nor shall they enlarge these provisions to a uniform standard applicable to all individuals.
IV.
The finance and taxation authorities at all levels shall perform their functions resolutely in accordance with the provisions of the
law on the administration of tax collection, and propose opinions of administering taxation according to law when the local governments
are making research and planning to make provisions not in conformity with the Individual Income Tax Law. And they shall elaborate
on the relevant provisions of tax law to the respective government, and report to the upper level finance and taxation authorities
according to the provisions of law on the administration of tax collection. After receiving this Notice, the finance and taxation
authorities at all levels shall report to the local Party and government leaders in time, and do a good job in publicizing and explaining
this to the Party and government leaders and all circles of the society as well as the vast taxpayers, so as to ensure the accurate
implementation of the Individual Income Tax Law and promote the overall, coordinated and healthy development of socialist economy.
|
| 