Contents 

Chapter I     General Provisions 

Chapter II    Tax Administration 

   Section 1  Tax Registration 

   Section 2  Administration of Accounting Books and Vouchers 

   Section 3  Tax Declaration 

Chapter III   Tax Collection 

Chapter IV    Tax Inspection 

Chapter V     Legal Liabilities 

Chapter VI    Supplementary Provisions 

Chapter I 

General Provisions 

Article 1  This Law is enacted for the purpose of standardizing tax collection and payment, ensuring the tax revenues of the
State, protecting the legitimate rights and interests of taxpayers and promoting economic and social development. 

Article 2  The administration of tax collection in respect of all taxes to be collected by the tax authorities in accordance
with law shall be governed by this Law. 

Article 3  The imposition of tax, the cessation thereof, tax reduction, tax exemption, refund of tax and payment of delinquent
tax shall be governed by the provisions of relevant laws; where the State Council is authorized by law to formulate relevant regulations,
the provisions of relevant administrative regulations formulated by the State Council shall apply. 

No units including government departments or individuals may, in violation of laws or administrative regulations, make decisions
regarding the imposition of tax, the cessation thereof, tax reduction, tax exemption, refund of tax or payment of delinquent tax,
or any other decision which is in contravention with laws or administrative regulations governing tax collection. 

Article 4  Units and individuals that are obligated to pay tax as prescribed by laws or administrative regulations are taxpayers. 

Units and individuals that are obligated to withhold and remit tax or collect and remit tax as prescribed by laws or administrative
regulations are withholding agents. 

Taxpayers and withholding agents shall pay tax or withhold and remit or collect and remit tax in accordance with the provisions of
relevant laws or administrative regulations. 

Article 5  The competent department for taxation under the State Council shall be in charge of the administration of tax collection
throughout the country. The national tax bureaus and the local tax bureaus in various places shall administer tax collection respectively
within the limits set by the State Council. 

The local people’s governments at various levels shall strengthen their leadership over or coordination of the administration of
tax collection within their respective administrative regions, and support the tax authorities in performing out their duties in
accordance with law, calculating the amounts of taxes to be paid according to the statutory tax rates and collecting taxes in accordance
with law. 

The departments and units concerned shall support and assist the tax authorities in performing their duties in accordance with law. 

No units or individuals may obstruct the tax authorities from performing their duties in accordance with law. 

Article 6  The State, in a planned way, equips the tax authorities at various levels with modern information technology, enhances
the modernization of the information system for administration of tax collection, and establishes and improves a information-sharing
system among tax authorities and other administrative departments of the governments. 

Taxpayers, withholding agents and other units concerned shall, in accordance with relevant State regulations, provide the tax authorities
with truthful information relating to payment of or withholding and remittance or collection and remittance of tax. 

Article 7  The tax authorities shall extensively disseminate the laws and administrative regulations on tax collection, popularize
knowledge about payment of tax and provide, free of charge, the taxpayers with consultancy relating to payment of tax. 

Article 8  Taxpayers and withholding agents shall have the right to approach the tax authorities for information about the provisions
of the State laws and administrative regulations on tax collection and information relating to the procedures of payment of tax.
 

Taxpayers and withholding agents shall have the right to request the tax authorities to keep their information confidential. The
tax authorities shall do so in accordance with law. 

Taxpayers shall, in accordance with law, have the right to apply for tax reduction, tax exemption and refund of tax. 

With regard to the decisions made by tax authorities, taxpayers and withholding agents shall have the right to argue their cases
and defend themselves; they shall, in accordance with law, have the right to apply for administrative reconsideration, take administrative
proceedings, request State compensation, etc. 

Taxpayers and withholding agents shall have the right to accuse tax authorities and officials of their violation of laws and rules
of discipline and report such violations.  

Article 9  Tax authorities should enhance the level of their contingents, in order to improve the political and vocational quality
of the tax officials. 

Tax authorities and officials shall implement laws impartially, devote themselves to their duties, be honest and upright, treat people
politely, serve them with civility, respect and protect the rights of taxpayers and withholding agents and, in accordance with law,
accept supervision. 

No tax officials may extort or take bribes, engage in malpractices for personal gain, neglect their duties, or fail to collect, or
undercollect the amount of tax payable; nor may they abuse their power to overcollect tax or deliberately create difficulties for
taxpayers or withholding agents. 

Article 10  Tax authorities at various levels shall establish and improve a system for internal restriction and supervision.
 

The tax authorities at higher levels shall, in accordance with law, exercise supervision over the law-enforcement activities conducted
by the authorities at lower levels. 

Tax authorities at various levels shall conduct inspection to see that their staff members are implementing laws and administrative
regulations and observe the norms for incorruptibility and self-discipline.  

Article 11  The functions and responsibilities of the officials of the tax authorities in charge of tax collection, management,
internal checking or administrative reconsideration shall be explicitly defined and shall be separate from each other and mutually
restrained. 

Article 12  Any tax official who, in collecting taxes or investigating and handling cases of violation of laws on tax collection,
is an interested party in relation to the taxpayers or withholding agents or the said cases, shall withdraw.   

Article 13  Every unit or individual shall have the right to report any violations of the laws and administrative regulations
on tax collection. The authorities receiving such report and the authorities responsible for investigating and handling the case
shall maintain confidentiality in respect of the accuser. The tax authorities concerned shall grant the accuser rewards in accordance
with relevant regulations. 

Article 14  The tax authorities mentioned in this Law refer to the tax bureaus at various levels and their sub-bureaus and tax
stations as well as the tax institutions which are established in accordance with the regulations of the State Council and are publicly
announced. 

Chapter II 

Tax Administration 

Section 1 

Tax Registration 

Article 15  Enterprises, the branches and the sites engaged in production or business operations established by enterprises
in other places, industrial and commercial households and institutions engaged in production or business operations (hereinafter
all referred to as taxpayers engaged in production or business operations) shall, within 30 days from the date the business license
is obtained, apply to the tax authorities for tax registration by presenting the relevant documents. The tax authorities shall, within
30 days from the date the application is received, issue the tax registration certificate upon examination and verification of the
documents. 

The administrative departments for industry and commerce shall keep the tax authorities regularly informed of their handling of registration
and issuing of business licenses upon examination. 

The items for tax registration by taxpayers and withholding agents other than those specified in the first paragraph of this Article
and the measures in this regard shall be formulated by the State Council. 

Article 16  When a taxpayer engaged in production or business operations intends to make any change in the items of tax registration,
he shall, within 30 days from the date he completes the formalities for such change in the business registration with the administrative
departments for industry and commerce or before he submits to the said department an application for cancellation of business registration,
apply to the tax authorities for the change in or cancellation of tax registration by presenting the relevant documents. 

Article 17  Any taxpayer engaged in production or business operations shall, in accordance with relevant State regulations and
by presenting the tax registration certificate, open a basic deposit account and other deposit accounts in banks or other financial
institutions and shall report all the account numbers to the tax authorities. 

Banks and other financial institutions shall record in the accounts of the taxpayer engaged in production or business operations
the number of his tax registration certificate. 

Where the tax authorities, in accordance with law, inquire about the accounts of a taxpayer engaged in production or business operations,
the banks or other financial institutions shall provide assistance.  

Article 18  Use of tax registration certificates by taxpayers shall be governed by the relevant regulations formulated by the
competent department for taxation under the State Council. No tax registration certificate may be lent, altered, damaged, traded
or forged. 

Section 2 

Administration of Accounting Books and Vouchers 

Article 19  Taxpayers and withholding agents shall, pursuant to the relevant laws, administrative regulations and regulations
of the competent departments for finance and taxation under the State Council, establish accounting books, keep accounts on the basis
of legitimate and valid vouchers and conduct accounting. 

Article 20  The financial and accounting systems or the financial and accounting procedures and the accounting softwares of
taxpayers engaged in production or business operations shall be submitted to the tax authorities for the record. 

Where the financial and accounting systems or the financial and accounting procedures of taxpayers or withholding agents contravene
the relevant regulations on tax collection formulated by the State Council or the departments for finance and taxation under the
State Council, the tax payable, the tax withheld and remitted or collected and remitted shall be calculated in accordance with the
said regulations. 

Article 21  The tax authorities are the competent departments in charge of invoices and are responsible for the control and
supervision over printing, purchasing,  writing out, obtaining, keeping and handing in for cancellation of invoices. 

When purchasing or selling commodities, providing or receiving business services or engaging in other business activities, all units
and individuals shall write out, use or be given invoices. 

Measures for control of invoices shall be formulated by the State Council.  

Article 22  The special invoices for value-added tax shall be printed by enterprises designated by the competent department
for taxation under the State Council; other invoices shall, pursuant to the regulations of the said department, be printed by the
enterprises designated respectively by the national taxation bureaus or local taxation bureaus of provinces, autonomous regions or
municipalities directly under the Central Government. 

No enterprises that are not designated by the taxation bureaus as provided for in the preceding paragraph may print invoices. 
    

Article 23  The State, based on the needs of the administration of tax collection, positively promotes the wide use of tax-monitoring
devices. Taxpayers shall, in accordance with regulations, install and use tax-monitoring devices, and no one may damage or destroy
or, without authorization, alter such devices.  

Article 24  Taxpayers engaged in production or business operations and withholding agents shall preserve their accounting books,
vouchers for the accounts, tax payment receipts and other relevant information for a period as specified by the competent departments
for finance and taxation under the State Council. 

No accounting books, vouchers for the accounts, tax payment receipts or other relevant information may be forged, altered or, without
authorization, damaged or destroyed. 

Section 3 

Tax Declaration 

Article 25  Taxpayers shall, within the time limit for and according to the items of tax declaration as prescribed by laws or
administrative regulations, or as determined by the tax authorities in accordance with laws or administrative regulations, truthfully
complete the formalities for tax declaration and submit tax returns, financial and accounting statements as well as other relevant
information on tax payments as required of the taxpayers by the tax authorities in light of actual needs.  

Withholding agents shall, within the time limit for and according to the items of tax declaration as prescribed by laws or administrative
regulations, or as determined by the tax authorities in accordance with laws or administrative regulations, submit truthful statements
on taxes withheld and remitted or collected and remitted as well as other relevant information as required of the withholding agents
by the tax authorities in light of actual needs. 

Article 26  Taxpayers and withholding agents may directly go to the tax authorities to complete the formalities for tax declaration
or to submit statements on tax withheld and remitted or collected and remitted, or, in accordance with regulations, handle the declaration
or submission matters mentioned above by mail, electronic data transmission or other means. 

Article 27  Where taxpayers or withholding agents are unable to complete the formalities for tax declaration or to submit statements
on the tax withheld and remitted or collected and remitted within the prescribed time limit, the time limit may be extended upon
examination and approval by the tax authorities. 

Anyone who is permitted to handle the declaration or submission matters mentioned above within the time limit extended upon examination
shall, within the prescribed time limit for tax payment, prepay the tax on the basis of the amount of the tax he actually paid last
or the amount determined by the tax authorities upon examination, and settle the payment within the extended time limit approved
upon examination.  

Chapter III 

Tax Collection 

Article 28  The tax authorities shall collect tax in accordance with the provisions of laws or administrative regulations. They
may not, in violation of such provisions, impose, cease to collect, overcollect, undercollect, collect in advance, postpone the collection
of, or apportion tax. 

The amount of agricultural tax payable shall be determined upon examination in accordance with the provisions of laws and administrative
regulations. 

Article 29  With the exception of tax authorities, tax officials and the units and individuals authorized by the tax authorities
in accordance with laws and administrative regulations, no unit or individual may engage in tax collection. 

Article 30  Withholding agents shall perform their obligations of withholding or collecting tax in accordance with the provisions
of laws or administrative regulations. With respect to units or individuals that are not obligated to withhold or collect tax as
prescribed by laws or administrative regulations, no tax authorities may request them to perform such obligations. 

When withholding agents perform the obligations of withholding or collecting tax in accordance with law, no taxpayers may refuse
to pay tax to them. Where a taxpayer refuses to do so, the withholding agent shall promptly report the matter to the tax authorities
for disposition. 

The tax authorities shall, in accordance with relevant regulations, pay to withholding agents service fees for withholding or collecting
tax.  

Article 31  A taxpayer or withholding agent shall pay or remit tax in compliance with the time limit as prescribed by laws or
administrative regulations, or as determined by tax authorities in accordance with laws or administrative regulations.  

Where a taxpayer is unable to pay tax within the prescribed time limit on account of special difficulties, he may, upon approval
by a national tax bureau or a local tax bureau of a province, autonomous region or municipality directly under the Central Government,
defer the payment of tax for a maximum period of three months. 

Article 32  Where a taxpayer fails to pay tax or a withholding agent fails to remit tax within the specified time limit, the
tax authorities shall, in addition to ordering the taxpayer or withholding agent to pay or remit the tax within a fixed period of
time, impose a surcharge on a daily basis at the rate of 0.05% of the amount of tax in arrears, from the date the tax payment is
defaulted. 

Article 33  A taxpayer may, in accordance with laws or administrative regulations, apply in writing for tax reduction or tax
exemption. 

Applications for tax reduction or tax exemption shall be subject to examination and approval by the examination and approval authorities
for tax reduction or tax exemption specified by laws or administrative regulations. All decisions on tax reduction or tax exemption
made in violation of laws or administrative regulations by the local people’s governments at various levels, the competent departments
under the said people’s governments, or by units or individuals shall be null and void. No tax authorities may implement such decisions,
and they shall instead report the matter to the tax authorities at a higher level. 

Article 34  When collecting tax, tax authorities shall issue tax payment receipts to taxpayers. When withholding or collecting
tax, the withholding agents shall, upon request by taxpayers, issue to them receipts for withholding or collecting tax. 

Article 35  If a taxpayer is under one of the following circumstances, tax authorities shall have the power to assess the amount
of tax payable by him: 

(1) where the establishment of accounting books is dispensed with in accordance with the provisions of laws and administrative regulations; 

(2) where accounting books are required to be established by the provisions of laws and administrative regulations, but they are
not established; 

(3) where the taxpayer damages or destroys accounting books without authorization or refuses to provide information on tax payment; 

(4) where accounting books are established, but the accounts are not in order or information on costs, receipt vouchers and expense
vouchers are incomplete, making it difficult to check the books; 

(5) where, when the obligation to pay tax arises, the taxpayer fails to complete the formalities for tax declaration within the specified
time limit and, after being ordered by tax authorities to make tax declaration within a fixed period of time, still fails to do so
upon expiration of the time limit; and 

(6) where the basis for assessing tax declared by the taxpayer is obviously on the low side and without justifying grounds. 

The specific procedure and measures for the tax authorities to determine the amounts of the tax payable shall be formulated by the
competent department for taxation under the State Council. 

Article 36  The payment or receipt of money or charges in business transactions between an enterprise, or an establishment or
site engaged in production or business operations which is set up by a foreign enterprise in China, and its associated enterprises
shall be made in the same manner as the payment or receipt of money or charges in business transactions between independent enterprises.
Where the payment or receipt of money or charges is not made in the said manner and thus results in a reduction of the taxable revenue
or income, the tax authorities shall have the power to make reasonable adjustments. 

Article 37  Where a taxpayer engaged in production or business operations or a taxpayer temporarily engaged in business operations
fails to complete the formalities for tax registration in accordance with regulations, the tax authorities shall assess the amount
of tax payable by him and order him to make the payment; if he fails to do so, the tax authorities may distrain the commodities or
goods of a value equivalent to the amount of tax payable; if he pays the amount of tax payable after the distraint, the tax authorities
shall immediately remove the distraint and return the commodities or goods distrained; if he still fails to pay the amount of tax
payable after the distraint, the commodities or goods distrained shall, upon approval of the commissioner of the tax bureau (or sub-bureau)
at or above the county level, be auctioned or sold off in accordance with law and the proceeds therefrom shall be used to offset
the amount of tax payable. 

Article 38  Where the tax authorities have grounds to believe that a taxpayer engaged in production or business operations commits
an act of tax evasion, they may, prior to the prescribed date of tax payment, order the taxpayer to pay the tax payable within a
fixed period of time. If, within the fixed period of time, the tax authorities discover evident signs that the taxpayer is transferring
or concealing the taxable commodities, goods or other property, or taxable income, they may order the taxpayer to provide a guaranty
for tax payment. If the taxpayer is unable to do so, the tax authorities may, upon approval of the commissioner of the tax bureau
(or sub-bureau) at or above the county level, adopt the following tax preservation measures: 

(1) to notify in writing the bank or any other financial institution with which the taxpayer has opened an account to freeze the
taxpayer’s deposits to the tune equivalent to the amount of tax payable; and 

(2) to distrain or seal up the taxpayer’s  commodities, goods or other property to the value equivalent to the amount of tax
payable. 

Where the taxpayer makes the tax payment within the fixed period of time prescribed in the preceding paragraph, the tax authorities
shall immediately lift the tax preservation measures. Where the taxpayer fails to do so on the expiration of the fixed period of
time, the tax authorities may, upon approval of the commissioner of the tax bureau (or sub-bureau) at or above the county level,
notify in writing the bank or any other financial institution with which the taxpayer has opened an account to withhold and remit
the amount of tax payable from the taxpayer’s frozen deposits, or, in accordance with law, auction or sell off the commodities, goods
or other property distrained or sealed up and use the proceeds therefrom to offset the amount of tax payable. 

Any housing or articles for use which are necessary for the daily lives of an individual and the family members he supports shall
not be subjected to the tax preservation measures.  

Article 39  Where a taxpayer makes the tax payment within the fixed period of time while the tax authorities fail to immediately
lift the tax preservation measures, thus causing losses to the legitimate interests of the taxpayer, the tax authorities shall be
liable for compensation. 

Article 40  Where a taxpayer engaged in production or business operations or a withholding agent fails to pay or remit tax within
the prescribed time limit, or a tax payment guarantor fails to pay the guaranteed amount of tax within the prescribed time limit,
the tax authorities shall order him to pay the tax within a fixed period of time. Where he fails to pay the tax on the expiration
of the time limit, the tax authorities may, upon approval of the commissioner of the tax bureau (or sub-bureau) at or above the county
level, adopt the following compulsory enforcement measures: 

(1) to notify in writing the bank or any other financial institution with which the taxpayer, withholding agent or tax payment guarantor
has opened an account to withhold and remit the amount of tax from his deposits; 

(2) to distrain, seal up or, in accordance with law, auction or sell off the commodities, goods or other property of the taxpayer,
withholding agent or tax payment guarantor, to the value equivalent to the amount of tax payable, and to use the proceeds therefrom
to offset the amount of tax payable. 

When executing the compulsory enforcement measures, the tax authorities shall do the same with regard to the surcharge which is unpaid
by the taxpayer, withholding agent or tax payment guarantor mentioned in the preceding paragraph. 

Any housing or articles for use which are necessary for the daily lives of an individual and the family members he supports shall
not be subjected to the compulsory enforcement measures.  

Article 41  No units or individuals other than the statutory tax authorities may exercise the power to adopt tax preservation
measures or compulsory enforcement measures provided for in Articles 37, 38 and 40 of this Law. 

Article 42  The tax authorities shall adopt tax preservation measures or compulsory enforcement measures in compliance with
the limits of power and procedures prescribed by law, and they may not seal up or distrain any housing and articles for use which
are necessary for the daily lives of the taxpayer himself and the family members he supports. 

Article 43  Where the tax authorities abuse their power and, in violation of law, adopt tax preservation measures or compulsory
enforcement measures, or inappropriately adopt such measures, thus causing losses to the legitimate rights and interests of taxpayers,
withholding agents or tax payment guarantors, the tax authorities shall be liable for compensation in accordance with law. 

Article 44  Where the taxpayer, who defaults on tax payment, or his legal representative needs to leave the territory of China,
either of them shall pay the amount of the tax payable and the surcharge thereon with, or provide a guaranty to, the tax authorities
before leaving the country. If neither the tax payable and the surcharge thereon are paid nor a guaranty is provided, the tax authorities
may notify the exit administration to prevent him from leaving the country. 

Article 45  Tax collection by the tax authorities shall have precedence over unwarranted claims, except where otherwise provided
for by law; where tax is defaulted before the taxpayer mortgages or pledges his property or before the taxpayer’s property is distrained,
tax collection shall have the precedence over the exercise of the right of mortgage, pledge or lien. 

Where a taxpayer defaults on tax payment and is at the same time fined and his unlawful gains are to be confiscated upon decision
by an administrative department, tax collection shall have precedence over the fine and confiscation of unlawful gains. 

The tax authorities shall regularly announce the taxes defaulted on by taxpayers. 

Article 46  Where a taxpayer defaults on tax payment and puts his property in mortgage or pledge, he shall explain to the mortgagee
or pledgee about his default on tax payment. The mortgagee or pledgee may request the tax authorities to provide information about
the default.  

Article 47  The tax authorities shall issue a receipt when distraining commodities, goods or other property, and issue a detailed
list when sealing up commodities, goods or other property.     

Article 48  Where taxpayers merge or separate their businesses, they shall report the matter to the tax authorities and pay
off the tax payable in accordance with law. If a taxpayer fails to pay off the tax payable at the time of merger, the new taxpayer
after the merger shall continue to fulfill the duty to pay tax; if a taxpayer fails to pay off the tax payable at the time of separation,
the new taxpayer after the separation shall bear joint and several liability for the unfulfilled duty.  

Article 49  Any taxpayer who defaults on payment of a considerable amount of tax shall, before disposing of his real estate
or large amount of fixed assets, report the matter to the tax authorities. 

Article 50  Where a taxpayer who defaults on tax payment is indolent in exercising his natural creditor’s rights, or disclaims
such rights, or transfers gratis his property, or transfers his property at a low price evidently unreasonable, which the transferee
is aware of, thus causing losses to tax collection of the State, the tax authorities may, in accordance with the provisions in Articles
73 and 74 of the Contract Law, exercise the rights of subrogation and rescission. 

Where the tax authorities exercise the rights of subrogation