The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.49

Adopted at the 27th meeting of the Standing Committee of the seventh National People’s Congress on September 4, 1992;

Amended in accordance with the Decisions on Amending the Law of the People’s Republic of China Concerning the Administration of Tax
Collection made at the 12th meeting of the Standing Committee of the seventh National People’s Congress on February 28, 1995;

Revised at the 21st meeting of the Standing Committee of the ninth National People’s Congress on April 28, 2001

The Law of the People’s Republic of China Concerning the Administration of Tax Collection, revised and adopted at the 21st meeting
of the Standing Committee of the ninth National People’s Congress of the People’s Republic of China on April 28, 2001, is hereby
promulgated and shall enter into force as of May 1, 2001.

President of the People’s Republic of China: Jiang Zemin

April 28, 2001

Law of the People’s Republic of China Concerning the Administration of Tax Collection

Chapter I General Provisions

Article 1

This law has been formulated with a view to strengthening the administration of tax collection, regulating tax collection and payment,
guaranteeing the tax revenue of the State, protecting the legitimate rights and interests of taxpayers and promoting economic and
social development.

Article 2

This Law shall apply to the administration of tax collection in respect of all taxes collected by tax authorities in accordance with
the law.

Article 3

The collection of tax or the cessation thereof, the reduction, exemption and refund of tax as well as the payment of tax dodged or
overdue shall be implemented in accordance with the law or, if the State Council is authorized by the law to formulate relevant provisions,
in accordance with the relevant provisions prescribed in administrative regulations formulated by the State Council. No governmental
organs, entities or individuals may be 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
dodged or overdue or decisions in conflict with other tax laws or administrative regulations.

Article 4

Entities or individuals obligated to pay taxes prescribed in the laws or administrative regulations are the taxpayers.

Entities or individuals obligated to withhold and remit taxes or collect and remit taxes prescribed in the laws or administrative
regulations are the withholding agents.

Taxpayers or withholding agents must pay taxes, or withhold and remit taxes or collect and remit taxes in accordance with the law
or the administrative regulations.

Article 5

The competent tax departments under the State Council shall be in charge of the administration of tax collection for the whole country.
All the national tax bureaus and local tax bureaus shall respectively administer the tax collection in accordance with the scopes
of administration of tax collection stipulated by the State Council. The local people’s government at each level shall strengthen
its leadership or coordination in the administration of tax collection within its jurisdiction, support the tax authorities in performance
of the duties in accordance with the law, and in the computation of the tax amount by national tariff, and the collection of taxes
in accordance with the law. The various departments and entities concerned shall support and assist the tax authorities in the performance
of the duties in accordance with the law.

No entities or individuals shall impede the tax authorities from performing duties in accordance with the law.

Article 6

The State shall systematically furnish the tax authorities at all levels with modern information technologies, strengthen the modernization
of the information system on the administration of tax collection, establish and amplify the information communion system between
tax authorities and other governmental administrative authorities.

Taxpayers, withholding agents and other relevant entities shall, in accordance with relevant provisions of the State, truthfully provide
the tax authorities with information related to tax payment and taxes withheld and remitted or collected and remitted.

Article 7

Tax authorities shall extensively disseminate tax laws and administrative regulations, the knowledge of tax payment, and gratuitously
provide taxpayers with consulting services on tax payment.

Article 8

Taxpayers and withholding agents shall have the right to inquire of the tax authorities about the tax laws and administrative regulations
of the State as well as the information related to tax payment procedures.

Taxpayers and withholding agents shall have the right to require the tax authorities to maintain confidentiality for the information
of the taxpayers and withholding agents. The tax authorities shall maintain confidentiality for the information of the taxpayers
and withholding agents in accordance with the law.

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

Taxpayers and withholding agents shall have the right to statement and the right of defense to the decisions made by tax authorities;
and shall have the rights to apply for administrative reconsideration, institute administrative litigation, ask for State compensation,
etc. in accordance with the law.

Taxpayers and withholding agents shall have the right to bring charges against or make exposure of any tax authority or tax official
for violation of laws or disciplines.

Article 9

Tax authorities shall make the effort to make their officials qualified and efficient for their duties.

Tax authorities and tax officials must enforce the law impartially and devote themselves to their duties, be clean and honest, treat
people politely, provide services courteously, respect the taxpayers and withholding agents and protect the rights of them, and accept
supervisions in accordance with the law.

Tax officials shall not extort or take bribes, commit fraudulence for selfish purposes, neglect their duties, or fail to collect or
under collect the taxes payable; nor shall they abuse their powers to over collect taxes or deliberately make difficulties for taxpayers
and withholding agents.

Article 10

The tax authorities at all levels shall establish and amplify the administrative system of interior restriction and supervision.

The tax authorities at the upper levels shall supervise the enforcement of the law of the tax authorities at the lower levels in accordance
with the law.

The tax authority at each level shall supervise and inspect its officials on the enforcement of laws and administrative regulations
as well as their adherence to the principle of honesty and self-discipline.

Article 11

The duties of the officials in a tax authority who are respectively responsible for collection, administration, check and administrative
reconsideration shall be clearly defined, and the rights and functions of the said officials shall be separated from each other and
checked.

Article 12

Where any tax official has a personal interest with the taxpayer or withholding agent or in the case in violation of tax laws, when
collecting taxes or investigating and disposing of a case in violation of tax laws, he shall withdraw.

Article 13

Any entity or individual shall have the right to make exposures of any acts committed in violation of the law or the administrative
regulations. The authorities who receive such exposures or who are in charge of investigation and disposition shall keep the secret
for the informers. The tax authorities shall grant the informers rewards in accordance with the relevant provisions.

Article 14

The “tax authorities” in this Law means the tax bureaus at all levels, their sub- bureaus, tax stations and tax institutions which
are established in accordance with the provisions of the State Council and announced to the society.

Chapter II Tax Administration

Section 1 Tax Registration

Article 15

Any of the enterprises, branches in other localities established by such enterprises, sites engaged in production or business operations,
individual businesses as well as institutions engaged in production or business operations (hereinafter referred to as “taxpayers
engaged in production or business operations” in general) shall, within 30 days after the receipt of the business license, apply
for the tax registration with the tax authority by producing the relevant documents. The tax authority shall, within 30 days as of
the receipt of such report, examine and verify the relevant documents, and issue tax registration certificates.

The administrative authorities for industry and commerce shall regularly inform tax authorities of the registration and issuance of
business licenses.

The scope of and methods for tax registration by taxpayers and for tax withholding registration formalities by withholding agents
other than those as prescribed in Paragraph 1 of this Article shall be stipulated by the State Council.

Article 16

Where a change occurs in the contents of tax registration of a taxpayer engaged in production or business operations, the taxpayer
concerned shall, within 30 days as of the date of completing the formalities for such change in registration with the administrative
authority for industry and commerce or prior to the application for cancellation of registration to the administrative authority
for industry and commerce, apply for and complete the formalities for the change or cancellation of tax registration with the tax
authority by producing the relevant documents.

Article 17

A taxpayer engaged in production or business operations shall, in accordance with relevant provisions of the State, open a basic deposit
account and other deposit accounts in a bank or other financial institution by producing the tax registration certificates, and shall
report all his account numbers to the tax authority.

The bank or other financial institution shall record the numbers of the tax registration certificates in the accounts of the taxpayer
engaged in production or business operations, and shall record the account numbers of the said taxpayer in the tax registration certificates.

When a tax authority is inquiring about the opening of account of a taxpayer engaged in production or business operations in accordance
with the law, relevant banks and other financial institutions shall provide their assistance.

Article 18

Taxpayers shall use tax registration certificates in accordance with the provisions formulated by the competent tax departments under
the State Council. The tax registration certificates shall not be lent, altered, damaged, traded or forged.

Section 2 Administration of Accounting Books and Supporting Vouchers

Article 19

Taxpayers or withholding agents shall establish accounting books in accordance with relevant laws and administrative regulations,
the provisions formulated by the fiscal or tax department under the State Council, keep accounts based on legitimate and valid vouchers
and conduct accounting.

Article 20

The financial and accounting systems or methods and the accounting software of a taxpayer engaged in production or business operations
shall be submitted to the tax authority for records.

Where the financial and accounting systems or methods of a taxpayer or a withholding agent are in conflict with the relevant tax provisions
formulated by the State Council or the fiscal or tax departments under the State Council, the calculation of the tax payable as well
as the tax withheld and remitted or collected and remitted shall be made in accordance with the relevant tax provisions formulated
by the State Council or the fiscal or tax departments under the State Council.

Article 21

A tax authority is the authority in charge of invoices, and is responsible for the administration and supervision of the printing,
purchase, issuance, acquirement, maintenance, cancellation of invoices.

A entity or individual shall, when purchasing or selling commodities, providing or accepting operational services, and being engaged
in other operational activities, issue, use and acquire invoices in accordance with relevant provisions.

The measures on the administration of invoices shall be formulated by the State Council.

Article 22

Special VAT invoices shall be printed by enterprises designated by the competent tax departments under the State Council; other invoices
shall be printed by enterprises designated by the tax departments of the people’s governments of the provinces, autonomous regions
and municipalities directly under the Central Government in accordance with the provisions made by the competent tax departments
under the State Council.

No enterprises are permitted to print invoices without authorization by the competent tax departments prescribed in the preceding
paragraph.

Article 23

The State may, based on the needs on the administration of tax collection, actively extend and apply tax-control facilities. Taxpayers
shall install and use the tax-control facilities in accordance with the provisions, and shall not damage the tax-control facilities
or alter them without authorization.

Article 24

Taxpayers or withholding agents engaged in production or business operations must maintain accounting books, supporting vouchers for
the accounts, tax payment receipts and other relevant information within the period prescribed by the fiscal or tax departments under
the State Council. Accounting books, supporting vouchers for the accounts, tax payment receipts and other relevant information shall
not be forged, revised or damaged without authorization.

Section 3 Filing Tax Returns

Article 25

Taxpayers must, in accordance with the laws and administrative regulations, and in keeping with the time limit and contents for filing
tax returns determined by the tax authorities in accordance with the provisions in laws and the administrative regulations, truthfully
file tax returns, submit tax return statements, financial and accounting statements as well as other information on tax payment required
by the tax authorities based on practical needs.

Withholding agents must, in accordance with the laws and administrative regulations, or the time limit and contents for filing tax
returns determined by the tax authorities in accordance with the provisions in laws and the administrative regulations, truthfully
submit reporting schedules on taxes withheld and remitted or collected and remitted as well as other relevant information required
by the tax authorities based on practical needs.

Article 26

Taxpayers and withholding agents may directly file tax returns or submit reporting schedules on the taxes withheld and remitted or
collected and remitted in tax authorities directly or by post, data telegram or by other means in accordance with relevant provisions.

Article 27

Where a taxpayer or withholding agent is unable to file tax returns or to submit reporting schedules on the taxes withheld and remitted
or collected and remitted within a prescribed time limit, the filing of the tax returns or the submission of the reporting schedules
may be postponed upon check and approval by the tax authority,.

Where the filing of the tax returns or submission of the reporting schedules prescribed in the preceding paragraph is postponed upon
check and approval, the taxes shall be prepaid within the period of tax payment in accordance with the amount of taxes actually paid
in the last period or assessed by the tax authority, and the tax settlement shall be handled within the postponed period upon check
and approval.

Chapter III Tax Collection

Article 28

The tax authorities shall collect taxes in accordance with the laws and administrative regulations. They shall not collect, cease
to collect, over collect, under collect, collect in advance, postpone the collection of or apportion taxes in violation of the laws
or administrative regulations.

The amount of agricultural taxes payable shall be assessed in accordance with the laws and administrative regulations.

Article 29

Except for tax authorities, tax officials and the entities and personnel entrusted by tax authorities in accordance with the law or
the administrative regulations, no entity or individual may collect taxes.

Article 30

Withholding agents shall fulfill their obligations of withholding or collecting taxes in accordance with the laws and administrative
regulations. The tax authorities shall not impose any tax withholding or collection requirements on the entities or individuals who
are not obligated to withhold or collect tax in accordance with the law or the administrative regulations.

When a withholding agent is withholding or collecting taxes in accordance with the law, the taxpayer shall not refuse to pay taxes.
If the taxpayer refuses to pay taxes, the withholding agent shall promptly report the case to the tax authority for disposition.

The tax authorities shall, in accordance with the relevant provisions, pay a handling fee to withholding agents for withholding or
collecting taxes.

Article 31

A taxpayer or withholding agent shall pay or remit taxes within the time limit prescribed in the laws or administrative regulations,
or determined by the tax authority in accordance with the laws and administrative regulations.

Where a taxpayer is unable to pay taxes within a prescribed time limit because of special difficulties, he may, upon approval of the
State tax bureau or local tax bureau of a province, autonomous region, municipality directly under the Central Government, defer
the tax payment for a period of not more than three months.

Article 32

Where a taxpayer fails to pay taxes or a withholding agent fails to remit taxes within a prescribed time limit, the tax authority
shall, in addition to ordering the taxpayer or withholding agent to pay or remit the taxes within the prescribed time limit, impose
a late fee at the rate of 0.05% per day of the amount of taxes in arrears, on the day the tax payment is overdue.

Article 33

A taxpayer may submit a written application for tax reduction or exemption to the tax authority in accordance with the laws and administrative
regulations.

Applications for tax reduction or exemption shall be examined and approved by the authorities designated for examination and approval
of tax reduction or exemption as prescribed in the laws or administrative regulations. The decisions on tax reduction or exemption
made by the people’s governments at all local levels, the competent departments of the people’s governments at all levels, entities
or individuals without authorization and in violation of the laws or administrative regulations shall be null and void. The tax authorities
shall not execute such decisions, and shall report to the tax authorities at the upper level.

Article 34

When a tax authority collects taxes, it must issue tax payment receipts to the taxpayers. A withholding agent shall, when withholding
or collecting taxes, issue tax withholding or collection vouchers if the taxpayer so requires.

Article 35

Where a taxpayer is in any of the following circumstances, the tax authority shall have the right to assess the amount of taxes payable
by the taxpayer:

(1)

accounting books are not required necessarily to be established in accordance with the laws and administrative regulations;

(2)

accounting books are required by the laws and administrative regulations to be established but have not been established;

(3)

a taxpayer destroys accounting books without authorization or refuses to provide information on tax payment;

(4)

although accounting books have been established, the accounting entries have not been entered in an appropriate manner or the information
on costs, receipt vouchers and expense vouchers are incomplete, causing difficulties in conducting an audit;

(5)

a taxpayer who is obligated to pay taxes fails to go through tax filing procedures within a prescribed time limit and, after having
been ordered by the tax authority to file tax returns within a prescribed time limit, still fails to file the tax returns within
the prescribed time limit;

(6)

the taxation basis filed by a taxpayer is obviously much lower, and without reasonable ground.

Specific procedures and methods for tax authorities to assess the amount of taxes payable shall be stipulated by the competent tax
departments under the State Council.

Article 36

The receipt or payment of charges or fees in business transactions between an enterprise (or institution or site engaged in production
or business operations) established in China by a foreign enterprise and its associated enterprises, shall be made at arm’s length
prices. Where the receipt or payment of charges or fees is not made at arm’s length prices and results in a reduction of the taxable
income, the tax authorities shall have the right to make reasonable adjustments.

Article 37

Tax authority shall assess the amount of taxes payable by a taxpayer engaged in production or business operations who does not apply
for tax registration in accordance with relevant provisions or by a taxpayer temporarily engaged in business operations, and shall
order them to pay taxes. Where the said taxpayer refuses to pay taxes, the tax authority may distrain his commodities or goods, the
value of which shall be equivalent to the amount of taxes payable. Where the amount of taxes payable is paid after the goods or commodities
have been distrained, the tax authority must immediately release the distrainment and return the distrained commodities or goods
to the entity or individual. Where the amount of taxes payable is still not paid after the distrainment, the commodities or goods
which have been distrained may, upon approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level or
above, be sold by auction or sold off in accordance with the law, the proceeds from the commodities or goods sold by auction or sold
off may be used to make good the amount of taxes payable.

Article 38

Where a tax authority has grounds for deeming that a taxpayer engaged in production or business operations has any act of evading
tax payment obligations, the tax authority may, prior to the prescribed date of the tax payment, order the taxpayer to pay the taxes
payable within a prescribed time limit. In the event that the tax authority discovers there is obvious evidence that the taxpayer
has transferred or concealed its taxable commodities, goods and other properties, or taxable income within the prescribed time limit,
the tax authority may order the taxpayer to provide a guaranty for tax payment. If the taxpayer is unable to provide a guaranty for
tax payment, the tax authority may, upon approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level
or above, adopt the following preservative measures of taxation:

(1)

notify in writing the banks or other financial institutions with which the taxpayer has opened an account to freeze the taxpayer’s
deposits of an amount equivalent to the amount of taxes payable temporarily;

(2)

distrain or seal up the taxpayer’s taxable commodities, goods or other properties, the value of which is equivalent to the amount
of taxes payable.

If the taxpayer makes the tax payment within the time limit as prescribed in the preceding paragraph, the tax authority must immediately
release the preservative measures of taxation. If the taxpayer fails to make the tax payment at the expiration of the time limit,
the tax authority may, upon approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level or above,
notify in writing the bank or other financial institution with which the taxpayer has opened an account to withhold and remit the
amount of tax from the taxpayer’s deposits which have been frozen, or sell by auction or sell off in accordance with law the commodities,
goods or properties which have been distrained and use the proceeds from the commodities, goods or properties sold by auction or
sold off to make good the amount of taxes payable.

The necessary lodgings and articles of an individual and his dependent family members to make a living shall not be within the scope
of the preservative measures of taxation.

Article 39

Where a taxpayer has made the tax payment within the time limit, but the tax authority fails to immediately release the preservative
measures of taxation, thus causing losses to the legitimate rights and benefits of the taxpayer, the tax authority shall bear compensation
liabilities.

Article 40

Where a taxpayer engaged in production or business operations or a withholding agent fails to pay or remit taxes, or a tax payment
guarantor fails to pay the guaranteed amount of taxes within the prescribed time limit, the tax authority shall order him to pay
the taxes within a specified time limit. If they fail to pay the taxes within the specified time limit, the tax authority may, upon
approval of the commissioner of a tax bureau (or a sub-bureau thereof) at the county level or above, adopt the following mandatory
enforcement measures:

(1)

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

(2)

distrain, seal up or sell by auction or sell off in accordance with the law the commodities, goods, or other properties of the taxpayer,
withholding agent or tax payment guarantor, the value of which shall be equivalent to the amount of taxes payable, and to use the
proceeds from the commodities, goods or properties sold by auction or sold off to make good the amount of taxes payable.

At the time when the tax authority is adopting the mandatory measures, it shall adopt the relevant mandatory measures to collect the
late fee which has not been paid by the taxpayer, withholding agent or tax payment guarantor.

The necessary lodgings and articles of an individual and his dependent family members to make a living shall not be within the scope
of the mandatory enforcement measures.

Article 41

The power to adopt the preservative measures of taxation or mandatory enforcement measures prescribed in Article 37 , 38 and 40 shall
not be exercised by any entity or individual other than the statutory tax authorities.

Article 42

Any of the tax authorities must adopt preservative measures of taxation or mandatory enforcement measures according to the legal authority
and the legal proceedings, and shall not seal up or distrain the necessary lodgings or articles of a taxpayer himself and his dependent
family members to make a living.

Article 43

Where a tax authority abuses its powers and illegally adopts preservative measures of taxation or mandatory enforcement measures,
or improperly adopts preservative measures of taxation or mandatory enforcement measures, thus causing losses to the legitimate rights
and interests of a taxpayer, a withholding agent or a tax payment guarantor, it shall bear compensation liabilities in accordance
with the law.

Article 44

Where a taxpayer or his legal representative who has not paid the amount of taxes payable needs to leave China, he shall pay the taxes
payable and the late fee or provide a guaranty to the tax authority before leaving the country. If the taxpayer neither pays the
taxes payable and the late fee nor provides a guaranty, the tax authority may notify the exit authority to stop the taxpayer from
leaving the country.

Article 45

When a tax authority is collecting taxes, the taxation shall have precedence over unsecured credits unless otherwise prescribed in
the law; if the event which a taxpayer has not paid the amount of tax payable happens before the taxpayer mortgages or pledges his
properties or before the taxpayer’s properties are retained, the taxation shall be prior to the right of mortgage, the right of pledge
and the lien.

Where a taxpayer has not paid the amount of taxes payable, and meanwhile he is imposed on a fine or confiscation of illegal proceeds
upon the decision by an administrative authority, the taxation shall have precedence over the fine and the confiscation of illegal
proceeds.

Tax authorities shall regularly announce the circumstances of the unpaid amount of taxes payable by taxpayers.

Article 46

Where a taxpayer has not paid the taxes payable but mortgages or pledges his properties, he shall state the fact of not paying the
taxes payable to the mortgagee or the pledgee. The mortgagee or the pledgee may request the tax authority to provide relevant information
on the taxpayer’s not paying the taxes payable.

Article 47

When distraining commodities, goods or other properties, the tax authority must issue a receipt for the distrained items. When sealing
up commodities, goods or other properties, the tax authority must write out a list of these items.

Article 48

Where a taxpayer has the circumstance of merger or division, he shall report to the tax authority, and make a full payment of taxes
in accordance with the law. Where the taxpayer fails to make a full payment of taxes at the time of its merger, the merged taxpayer
shall continue to perform the unfinished tax payment obligations; where the taxpayer fails to make a full payment of taxes at the
time of its division, the divided taxpayers shall bear joint liabilities for the unfinished tax payment obligations.

Article 49

A taxpayer who has not paid a large amount of taxes payable shall report to the tax authority before he disposes of his immovable
properties or large amount of assets.

Article 50

Where a taxpayer who has not paid the taxes payable causes any loss to the State taxation due to his idleness in exercising his mature
credits, or waiving his mature credits, or gratuitously transferring his properties, or transferring his properties at an obviously
unreasonable low price but the transferee knows the fact, the tax authority may exercise its rights of subrogation and rescission
in accordance with the provisions in Article 73 , 74 of the Contract Law.

Where the tax authority exercises its rights of subrogation and rescission in accordance with the preceding paragraph, the taxpayer
who has not paid the taxes payable shall not be released from his tax payment obligations unperformed and the legal liabilities he
shall bear.

Article 51

Once the tax authority finds that a taxpayer has paid an amount of taxes in excess of the taxes payable, the authority shall immediately
refund the excess amount to the taxpayer. Where a taxpayer discovers that he has paid an amount of taxes in excess of the taxes payable
within three years from the date the tax payment has been made, he may claim a refund of the excess amount of taxes from the tax
authority plus the bank deposit interest of the time period. Upon examination and verification of the case, the tax authority shall
immediately refund the excess amount of taxes. Where refund from the State treasury is involved, the excess amount of taxes shall
be refunded in accordance with relevant laws and administrative regulations on the administration of the State treasury.

Article 52

Where a taxpayer or withholding agent fails to pay taxes or underpay taxes due to the fault of the tax authority, the tax authority
may, within three years, require the taxpayer or withholding agent to pay the taxes in arrears, but they shall not impose any late
fee.

Where a