Beijing Municipality, Strengthening the Administration of the Levy and Collection of Individual Income Tax from Key Taxpayers Tentative Measures

Issued: September 27 2002
Effective: November 1 2002
Interpreting authority: Beijing Local Taxation Bureau
Applicability: As defined in the Measures, key taxpayers include: individuals with an income exceeding Rmb100,000; legal representatives, general managers and principal responsible persons who withhold individual income taxes; individuals with monthly income from two or more sources and who have no withholding obligation; individuals who receive income from abroad (including Hong Kong, Macao and Taiwan); and foreign persons who are required by tax laws to pay taxes (Article 2).

Main contents: Key taxpayers and/or their employers shall submit a Key Taxpayer Basic Information Report to the competent tax authority (Article 6). Key taxpayers conforming to Items 2-5 of Article 2 shall submit a Key Taxpayer Taxation Report on the seventh day of the month succeeding the receipt of income; those who have paid taxes in another country or region will receive a deduction upon presentation of proof (Article 14). The punishment for tax evasion is a fine ranging from 50% to 500% of the evaded amount, or criminal prosecution (Article 18).
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 Administration of the Levy and Collection of Taxes Law Implementing Rules, Sep 7 2002, CLP 2002 No.8 p12; PRC Individual Income Tax Law (Second Revision), Aug 30 1999, CLP 1999 No.8 p12; PRC Individual Income Tax Law Implementing Regulations, Jan 28 1994, CLP 1994 No.3 p9 and Further Strengthening the Administration of the Levy and Collection of Individual Income Tax from High Income Persons Circular, 2001