Guangzhou Municipality, Strengthening the Administration of Collection of Individual Income Tax from Key Taxpayers Tentative Measures

Promulgated: November 29 2001
Effective: January 1 2002
Interpreting authority: Guangzhou Municipal Administration of Local Taxes
Applicability: For the purposes of these Measures, "key taxpayers" includes expatriates working in various capacities in Guangzhou (including overseas Chinese and compatriots from Hong Kong, Macao and Taiwan), salaried lawyers, registered accountants, brokers in the entertainment, sport and economic sectors, enterprise legal representatives and financial officers in high-income industries and sole proprietors, shareholders or partners whose business income reached specified levels in the previous year (Article 2). "High-income industries" include law firms, accounting firms, foreign investment enterprises, foreign enterprises, resident offices of foreign enterprises, high and new technology enterprises, hotels with at least four stars, mass media and listed companies (Article 3).

Main contents: Key taxpayers or their employers are required to complete tax source registration with the tax authority. This registration involves provision of information of personal and employment particulars to the tax authority (Article 4). For certain key taxpayers such as legal representatives, both the taxpayers and their employers are required to file tax returns in respect of their individual incomes (Article 6). Tax returns shall be filed to the tax authority in the place where the income comes from. If a key taxpayer has incomes from two or more places, the taxpayer may choose one place to file his tax return (Article 9). All work units of the tax authority shall take key taxpayers into the scope of routine tax audit (Article 12).
Related legislation: PRC, Administration of Tax Collection Law (Revised in April 2001), Apr 28 2001, CLP 2001 No.5 p12 & CLP 1995 No.3 p12; PRC, Individual Income Tax Law (Second Revision), Aug 30 1999, CLP 1999 No.8 p12 and Guangdong Province, Transmission of the State Administration of Taxation, Further Strengthening the Administration of Collection of Individual Income Tax from High-income Individuals Circular, 2001