State Administration of Taxation, Tax Agency Business Rules (Trial Implementation)

Issued: 8 October 2001
Effective: as of date of issue
Interpreting authority: State Administration of Taxation
Applicability: These Rules apply to the engagement of qualified tax firms by taxpayers, withholding agents and other entities and individuals as tax agents to handle tax matters on their behalves (Article 2).

Main contents: The Rules specify the scope of tax agency, which includes, among other things, preparation of tax returns, request of tax rebates, auditing of tax payments, provision of tax advice and filing for administrative review in connection with tax matters (Article 3). The Rules require that a tax agency agreement be entered into when a tax agent is engaged to act for a principal on tax matters (Article 7). Liabilities and compensation for breach of contract must be specified in the agreement (Article 8). The tax agent must enter into the agreement in the name of a tax firm, and no individual tax agent may accept appointment in his/her own name (Article 10). The tax agent has an obligation to promptly report to the competent tax authority instances where existing tax laws and regulations are not specific or not clear on any relevant matters or when the principal has violated and, in disregard of admonition, continues to violate the laws and regulations of the State (Article 22). The tax agent shall also establish a tax agency file for each tax agency business (Article 39).