Implementing Rules for the PRC Law on the Administration of the Levy and Collection of Taxes

Revised on November 19 2012. Latest revision can be found at: http://www.chinalawandpractice.com/Article/3123464/Implementing-Rules-for-the-PRC-Law-on-the-Administration-of-the-Levy-and-Collection-of-Taxes-Revised.html

(Issued by the State Council on 7 September 2002 and effective as of 15 October 2002.)

PART ONE: GENERAL PROVISIONS

Article 1: These Rules are formulated in accordance with the PRC Law on the Administration of the Levy and Collection of Taxes (the Tax Administration Law).

Article 2: The Tax Administration Law and these Rules shall apply to the administration of the levy and collection of all types of taxes that are imposed by tax authorities in accordance with the law. Matters not covered in the Tax Administration Law and these Rules shall be handled in accordance with other tax laws and administrative regulations.

Article 3: All decisions in conflict with tax laws and administrative regulations made by any department, work unit or individual shall be void; tax authorities may not enforce such decisions and shall submit a report thereon to the higher level tax authority.

Taxpayers shall perform their tax payment obligations in accordance with tax laws and administrative regulations. Any contract or agreement signed by a taxpayer that conflicts with tax laws or administrative regulations shall be void.

Article 4: The State Administration of Taxation (SAT) is responsible for formulating a master plan, technical standards, technical plans and implementing procedures for the transition of the national taxation system into an information-based environment. Tax authorities at all levels shall carry out the specific work of the information-based environment transition for their respective regions in accordance with the SAT's master plan, technical standards, technical plans and implementing procedures.

All levels of local people's government shall actively support the transition of the taxation system into an information-based environment and shall organize related departments to share relevant information.

Article 5: For the purposes of Article 8 of the Tax Administration Law, the phrase "details of the taxpayer or withholding agent kept confidential" means the trade secrets and personal private matters of the taxpayer or withholding agent. The taxpayer's or withholding agent's activities that violate tax laws are not contained in the scope of confidentiality.

Article 6: The SAT shall formulate a code of conduct and service standards for tax officers.

If a higher level tax authority discovers an illegal tax collection activity of a lower level tax authority, it shall rectify the matter in a timely manner. Lower level tax authorities shall make timely corrections in accordance with the decisions of higher level tax authorities.

If a lower level tax authority discovers an illegal tax collection activity of a higher level tax authority, it shall report the matter to either the higher level tax authority or the relevant department.

Article 7: Tax authorities shall give the reporter of an offence an award commensurate with his contribution. The funds necessary for such rewards shall be placed on the annual budgets of the tax authorities and shall be determined on a case-by-case basis. The procedures for the specific use of the reward funds and the standards for the rewards shall be formulated by the State Administration of Taxation in conjunction with the Ministry of Finance.

Article 8: When determining taxes to be paid, adjusting collection quotas, performing tax investigations, imposing administrative tax penalties and handling tax-related administrative reconsideration, tax officers shall withdraw if they are related to the taxpayer or withholding agent or the legal representative thereof, or to the directly responsible person in any of the following ways:

(1) if they are the spouse;

(2) if they are a direct blood relative;