State Administration of Taxation, Security for Tax Payments Trial Procedures

Promulgated: May 24 2005
Effective: July 1 2005
Applicability: For the purposes of these Procedures, "security for tax payments" refers to activities in which taxpayers or other natural persons, legal persons or economic organizations provide security for tax payments and late fees payable by way of guarantees, mortgages and pledges subject to the consent or confirmation of tax authorities (Article 2).

Main contents: Security for tax payments shall apply to circumstances such as: (1) where tax authorities have reason to believe that a taxpayer engaging in production and operations is evading tax obligations; and (2) where a taxpayer owing tax payments or late fees, or its legal representative, needs to leave China (Article 3). The Procedures give details to different kinds of security for tax payments. Part Two concerns tax guarantees, Part Three tax mortgages and Part Four tax pledges.
Related legislation: PRC Administration of Tax Collection Law (Revised in April 2001), Apr 28 2001, CLP 2001 No.5 p12 & CLP 1995 No.3 p.12 and PRC Administration of the Levy and Collection of Taxes Law Implementing Rules, Sep 7 2002, CLP 2002 No.8 p.12