Official legal text published by the National People’s Congress of the People’s Republic of China .
Chapter I – General Provisions
Article 1
This Law is enacted for the purpose of strengthening tax collection administration, ensuring the payment of tax revenues, safeguarding the lawful rights and interests of taxpayers, and promoting economic and social development.
Article 2
The collection of taxes and the administration thereof shall be governed by this Law.
Where laws and administrative regulations provide otherwise with respect to the collection and administration of taxes, such provisions shall prevail.
Article 3
All units and individuals that are obligated to pay taxes in accordance with laws and administrative regulations shall pay taxes, and all units and individuals that are obligated to withhold or collect taxes in accordance with laws and administrative regulations shall withhold or collect taxes, in accordance with this Law.
Article 4
The departments of taxation under the State Council shall be in charge of tax collection administration nationwide.
The tax authorities under the local people’s governments at various levels shall be in charge of tax collection administration within their respective administrative regions.
Article 5
Tax authorities shall administer tax collection in accordance with law, enforce tax laws strictly and impartially, protect state tax revenues, and safeguard the lawful rights and interests of taxpayers.
Article 6
Taxpayers, withholding agents and other parties concerned shall abide by tax laws and administrative regulations, accept tax administration in accordance with law, and have the right to report and accuse any acts in violation of tax laws and administrative regulations.
Article 7
Tax authorities shall publicize tax laws and administrative regulations, popularize tax-related knowledge, and provide taxpayers with tax consultation services.
Article 8
Taxpayers and withholding agents shall have the right to know tax laws and administrative regulations, and to require tax authorities to keep confidential their business secrets and personal privacy.
Article 9
Tax authorities shall establish and improve a sound system for tax collection administration, strengthen internal control and supervision, and prevent and punish acts of abuse of power, dereliction of duty, and malpractice for personal gain.
Article 10
The State shall establish and improve a modern tax administration system through the application of information technology, enhance the efficiency of tax collection and administration, and facilitate taxpayers in fulfilling their tax obligations.
Article 11
Tax authorities shall, in accordance with law, cooperate with relevant departments, share information, and jointly strengthen tax administration.
Article 12
The specific measures for the implementation of this Law shall be formulated by the State Council.
Chapter II Tax Administration
Article 13
Taxpayers shall, within 30 days from the date on which they obtain a business license, or from the date on which their tax obligation arises, apply to the tax authorities for tax registration.
Article 14
Taxpayers who have completed tax registration shall, in accordance with the relevant provisions, open bank accounts and submit the account information to the tax authorities for record-filing.
Article 15
Where there is any change in the contents of tax registration, taxpayers shall, within the prescribed time limit, apply to the tax authorities for modification of tax registration.
Article 16
Where taxpayers suspend business operations, they shall report to the tax authorities and go through the procedures for suspension of business.
Article 17
Where taxpayers resume business operations after suspension, they shall report to the tax authorities and go through the procedures for resumption of business.
Article 18
Where taxpayers terminate business operations, they shall, before applying for cancellation of registration with the market supervision and administration authorities, settle tax payments, late payment surcharges, and fines payable, submit relevant tax returns, and go through tax deregistration procedures with the tax authorities.
Article 19
Taxpayers and withholding agents shall, in accordance with the law, establish account books, keep accounting vouchers, and conduct accounting and accounting management in accordance with relevant state provisions.
Article 20
Taxpayers and withholding agents shall, in accordance with the law, use invoices issued or supervised by tax authorities, and shall not forge, alter, conceal, or destroy invoices or accounting vouchers.
Article 21
Tax authorities shall, in accordance with the law, strengthen the administration of invoices, establish and improve invoice management systems, and supervise the issuance, acquisition, storage, and use of invoices.
Chapter III Tax Assessment
Article 22
Taxpayers and withholding agents shall, in accordance with the law, file tax returns truthfully and submit tax payment documents within the prescribed time limit.
Article 23
Taxpayers shall calculate and pay taxes in accordance with the provisions of laws and administrative regulations governing taxation.
Article 24
Where taxpayers fail to set up account books as required, fail to keep accounting vouchers, or keep false accounting records, the tax authorities shall have the right to assess the tax payable.
Article 25
Where taxpayers fail to file tax returns within the prescribed time limit, or where the content of tax returns is obviously inaccurate, the tax authorities shall have the right to assess the tax payable.
Article 26
Where taxpayers fail to truthfully report taxable income, or where tax returns are suspected of concealing or falsely reporting income, the tax authorities shall have the right to assess the tax payable.
Article 27
Where taxpayers fail to provide relevant tax information, or where the information provided is incomplete or false, the tax authorities shall have the right to assess the tax payable.
Article 28
The methods for tax assessment shall be determined by tax authorities in accordance with the law, taking into account factors such as production and business operations, accounting records, and industry standards.
Article 29
Tax authorities shall notify taxpayers of the basis, methods, and results of tax assessment, and taxpayers shall have the right to make statements and defenses.
Chapter IV Tax Collection Measures
Article 30
Tax authorities shall collect taxes in accordance with the time limit prescribed by laws and administrative regulations governing taxation.
Article 31
Where taxpayers fail to pay taxes within the prescribed time limit, the tax authorities shall order them to pay the taxes within a time limit and shall impose a surcharge for overdue tax payment in accordance with the law.
Article 32
The surcharge for overdue tax payment shall be imposed on a daily basis at the rate prescribed by the State Council from the date on which the tax payment is overdue.
Article 33
Where taxpayers fail to pay taxes, the tax authorities may notify the banks or other financial institutions where the taxpayers have deposits to withhold the tax payment from their deposits.
Article 34
Where taxpayers fail to pay taxes, the tax authorities may seize or seal up their commodities, goods, or other property equivalent to the amount of tax payable.
Article 35
Where taxpayers fail to pay taxes within the prescribed time limit, the tax authorities may auction or sell the commodities, goods, or other property that have been seized or sealed up, and use the proceeds to offset the tax payment.
Article 36
Where taxpayers owe taxes and provide no guarantee, the tax authorities may restrict the taxpayers from leaving the country in accordance with the law.
Article 37
Where taxpayers are under liquidation, the tax authorities shall supervise the payment of taxes in accordance with the law.
Article 38
Where taxpayers merge, divide, transfer assets, or change organizational forms, they shall settle tax payments in accordance with the law.
Article 39
Where taxpayers conceal or transfer property to evade tax payment, the tax authorities may take measures to recover the tax payable in accordance with the law.
Chapter V Tax-related Administrative Penalties
Article 40
Where taxpayers fail to handle tax registration in accordance with the law, the tax authorities shall order them to make corrections within a prescribed time limit and may impose a fine.
Article 41
Where taxpayers fail to establish account books, or fail to keep accounting vouchers, or keep false accounting records, the tax authorities shall order them to make corrections within a prescribed time limit and may impose a fine.
Article 42
Where taxpayers fail to file tax returns within the prescribed time limit, or file false tax returns, the tax authorities shall order them to make corrections within a prescribed time limit and may impose a fine.
Article 43
Where taxpayers evade taxes by forging, altering, concealing, or destroying account books or accounting vouchers, or by falsely listing expenses or failing to list or underreport income, the tax authorities shall recover the unpaid or underpaid taxes, impose a surcharge for overdue tax payment, and impose a fine.
Article 44
Where taxpayers refuse to pay taxes by violence or threat, the tax authorities shall recover the unpaid taxes, impose a surcharge for overdue tax payment, and impose a fine.
Article 45
Where taxpayers defraud tax refunds by falsely declaring exports or by other fraudulent means, the tax authorities shall recover the tax refunds obtained, impose a surcharge for overdue tax payment, and impose a fine.
Article 46
Where taxpayers fail to use invoices in accordance with the law, forge, alter, sell, or illegally provide invoices, or illegally purchase invoices, the tax authorities shall impose penalties in accordance with the law.
Article 47
Where withholding agents fail to withhold or collect taxes in accordance with the law, the tax authorities shall recover the taxes payable and may impose a fine.
Article 48
Where taxpayers or withholding agents refuse to accept tax inspection or obstruct tax inspection, the tax authorities shall impose penalties in accordance with the law.
Chapter VI Legal Liability
See also: Law of the People’s Republic of China on the Administration of Tax Collection .
Article 49
Where tax authorities or tax officials abuse their powers, neglect their duties, or engage in malpractice for personal gain, resulting in losses to state tax revenues or infringement upon the lawful rights and interests of taxpayers or withholding agents, administrative sanctions shall be imposed in accordance with the law.
Article 50
Where tax authorities illegally collect taxes or impose charges, they shall return the collected amounts and bear corresponding legal liability in accordance with the law.
Article 51
Where tax officials extort or accept bribes, or abuse their authority to collect or withhold taxes illegally, criminal liability shall be investigated in accordance with the law if the circumstances constitute a crime.
Article 52
Where tax authorities or tax officials violate tax laws and administrative regulations and infringe upon the lawful rights and interests of taxpayers or withholding agents, they shall bear corresponding legal liability in accordance with the law.
Article 53
Where taxpayers or withholding agents violate tax laws and administrative regulations, causing damage to state tax revenues, they shall bear corresponding legal liability in accordance with the law.
Chapter VII Supplementary Provisions
Article 54
The interpretation of this Law shall be vested in the Standing Committee of the National People’s Congress.
Article 55
This Law shall enter into force on January 1, 1993.
Disclaimer: The regulation of company registration in China is translated by FDIChina for reference only. There may be different interpretations of the Chinese version.