The Rights of Taxpayers
According to 《 THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ADMINISTRATION OF TAX COLLECTION 》， the taxpayers have the following rights:
1. The right to know tax laws and tax payment procedures
Taxpayers and withholding agents have the right to know tax laws, administrative regulations and tax payment procedures.
2. The right to apply for tax reduction, exemption and refund according to tax laws
In the case of a taxpayer having paid tax in excess of the due taxable amount, the tax authority shall immediately refund the excess amount to the taxpayer. Where a taxpayer discovers the situation within three years from the payment date, it may claim a tax refund and the bank deposit interest of the corresponding period from the tax authority. Upon examination and verification of the case, the tax authority shall immediately refund the excess amount of tax.
A taxpayer may submit a written application for tax reduction or exemption to the tax authority in accordance with the law or the administrative regulations. Applications for tax reduction or exemption shall be examined and approved by the authority designated for examination and approval of tax reduction or exemption as prescribed in the law or the administrative regulations. The decisions on tax reduction or exemption made by the people’s governments at various local levels, the competent departments of the people’s governments at various levels, entities or individuals without authorization in violation of the law or the administrative regulations shall be null and void.
3. The right to require the tax authority to maintain confidentiality for their information
Taxpayers and withholding agents have the right to require the tax authority to maintain confidentiality for their information. And the tax authority must maintain confidentiality for taxpayers’ information according to laws.
4. The right to make statement and defend oneself
Taxpayers and withholding agents have the right to make statement and defend themselves for the decisions made by the tax authority.
5. The right to apply for administrative reconsideration and administrative legal proceedings
Taxpayers and withholding agents have the right to apply for reconsideration and propose administrative legal proceedings for the decisions made by the tax authority according to laws.
6. The right of application for compensation from government according to laws
Taxpayers and withholding agents have the right to apply for compensation from government for the decisions made by the tax authority the according to laws.
7. The right to accuse and prosecute the tax authority and tax officials of violating law and discipline
Taxpayers and withholding agents have the right to accuse and prosecute the tax authority and tax officials of violating law and discipline.
8. The right to apply for tax deferral
When taxpayers or withholding agents are unable to apply for due tax declaration, make tax payment or submit tax withholding form the prescribed time limit, they may, upon examination and approval of the tax authority, apply for tax deferral for a period of not more than 3 months.
9. The right to apply for postponing the tax payment
When a taxpayer is unable to pay tax within the prescribed time limit due to special difficulties, it may, upon approval of a State Tax Administration at the provincial, municipal directly under the State Council or autonomous region level, apply to postpone the tax payment for a period of not more than 3 months.
10. The right to choose declaration methods
Taxpayers or withholding agents may directly go to the tax authority to make tax payment or submit tax withholding forms. They may also file, submit tax declaration by mail, data telex or other means according to the regulations.
11. The right to demand the tax officials to avoid involvement
The tax officials in charge of tax collection and illegal case investigation shall avoid involvement provided that they have personal interests with the taxpayers, the withholding agents or the related case.
12. The right to refuse being investigated if no investigating card or notice is presented
When carrying out tax investigation dispatched by the tax authority, the tax officials must show their Tax Investigation Card and Notice for Tax Investigation, and be obliged to keep confidentiality for the taxpayers; Taxpayers or the withholding agents and other parties concerned have the right to refuse the investigation if no such card or notice is presented.
13. The right to getting a commission fee for tax payments withheld or collected
The tax authority shall pay a commission fee to withholding agents for withholding or collecting tax in accordance with the relevant provisions.
14. When commodities, goods or other property are impounded or sealed up, the taxpayers have the right to demand receipt or list of the items.
When impounding commodities, goods or other property, the tax authority must issue a receipt for the items impounded. When sealing up commodities, goods or other property, the tax authority must present a list of these items.
15. The right to get tax payment receipt
When the tax authority collects tax payment, tax payment receipts must be issued to the taxpayers. When withholding or collecting tax payment, withholding agents shall issue tax withheld or collected receipts upon the taxpayer’s request.
16. The right to entrust tax agents to handle taxation matters
Taxpayers and withholding agents can entrust tax agents to handle matters related to taxation.
The Obligations of Taxpayers
According to THE LAW OF THE PEOPLE’S REPUBLIC OF CHINA CONCERNING THE ADMINISTRATION OF TAX COLLECTION，the taxpayers have the following obligations:
1. The obligation of paying the tax, withholding and remitting or collecting and remitting tax according to the provisions of laws and regulations.
Taxpayers and withholding agents must pay their tax, withhold and remit or collect and remit tax according to the provisions of laws and regulations.
2. The obligation of providing the information concerning the tax payment
Taxpayers and withholding agents shall provide the tax authority with true information concerning their tax payment, tax withholding and remittance or tax collection and remittance with the relevant provisions.
Taxpayers engaged in production or business operations shall report all accounts number to the tax authority.
3. The obligation of completing tax registration formalities within 30 days after receiving the business license.
Enterprises, branches in other jurisdictions and sites engaged in production or business operations established by enterprises, individual households engaged in industry and commerce as well as institutions engaged in production or business operations (hereinafter refer to taxpayers engaged in production or business operations) shall, within 30 days after receiving the business license, handle tax registration formalities with the tax authority by presenting relevant documents.
4. The obligation of reporting alteration or cancellation of tax registration with the tax authority, within 30 days after completing the business registration or prior to the submission of applications for cancellation of business registration, where changes occur in the contents of tax registration.
Where changes occur in the contents of tax registration of taxpayers engaged in production or business operations, the taxpayers concerned shall, within 30 days after completing the formalities for such changes in the business registration with the Administration for Industry and Commerce or prior to the submission of applications for cancellation of business registration to the Administration for Industry and Commerce, report to complete the formalities for the change or cancellation of tax registration with the tax authority by presenting the relevant documents.
5. The obligation of presenting tax registration certificates when opening account, and reporting to the tax authority.
Taxpayers shall present tax registration certificates when opening basic bank account and other account in banks and other financial institutions, and report all accounts number to the tax authority.
6. The obligation of using the tax registration certificates in accordance with the provisions.
Taxpayers shall use their tax registration certificates in accordance with the provisions of the tax authority under the State Council. Such certificates shall not be lent, tampered with, damaged, traded or forged.
7. The obligation of submitting the financial and accounting system or methods, accounting software to the tax authority.
The financial and accounting systems or methods, accounting software and its user’s direction and other relevant materials of taxpayers engaged in production and operations shall be submitted to the tax authority for keep records. Should the financial and accounting systems or methods of taxpayers or withholding agents be in conflict with the relevant tax rules formulated by the State Council or the competent public finance and taxation departments under the State Council, the amount of tax payment, tax withholding and remittance and tax collecting and remittance shall be calculated according to the relevant provisions of the State Council or the competent public finance and taxation authority under the State Council.
8. The obligation of issuing, using, requesting or well-managing invoice according to regulations.
When purchasing or selling goods, providing or receiving business services and performing other business activities, each unit or individual has the obligation to issue, use or request invoice according to regulations.
9. The obligation of establishing, keeping accounting books, accounting documents, tax payment certificates and other related materials according to regulations.
Taxpayers engaged in production and operations and withholding agents shall, according to the preservation period as specified by the competent public finance and taxation authority under the State Council, keep accounting books, accounting documents, tax payment certificates and other related materials. Accounting book, documents, record, tax payment certificate and other relevant materials are not allowed to be forged, altered or destroyed.
10. The obligation of declaring tax due timely and actually according to regulations.
Taxpayer shall, according to the declaration period and the declaration content specified in the provisions of laws and administrative regulations or by the tax authority in line with the provisions in laws and administrative regulations, submit their tax declaration form, financial and accounting statements and other tax payment materials requested by the tax authority based upon actual needs. Withholding agents shall, according to the declaration period and the declaration content specified in the provisions of laws and administrative regulations or by the tax authority in line with the provisions in laws and administrative regulations, submit the tax withholding and remitting form, collecting and remitting form, and other tax payment materials requested by the tax authority based upon actual needs.
11. The obligation of taking in tax inspections, providing true situation and offering related information.
All taxpayers and withholding agents must take in tax inspections conducted by the tax authority, provide true situation, offer related information. Refusal or hiding information is not allowed.
12. The obligation of paying or transferring the tax due and late fee or providing corresponding guarantee in the first place when any dispute arises.
Should any dispute arise between taxpayers, withholding agents or tax payment guarantors and the tax authority with regard to tax payment, the tax due and arrearage shall be paid or transferred or the guarantee shall be offered according to the provisions in laws and administrative regulations in the first place; and then may apply for reconsideration according to laws. If they do not accept the reconsideration decision, they may institute litigation before a people’s court.
13. The obligation of reporting to the tax authority when merging or separation in company structure occurs.
Taxpayers shall report to the tax authority when merging or separation in company structure occurs and settle tax payment in accordance with the law.
14. The obligation of continuing the tax obligation that have not been fulfilled at the time of merging.
Taxpayers shall continue to fulfill the tax obligation that has not been fulfilled at the time of merging.
15. The obligation of bearing the joint tax liability unsettled at the time of separation.
Taxpayers after the separation shall bear the joint tax liability unsettled at the time of separation.
16. The obligation of reporting to the tax authority for taxpayers with large tax arrears before disposing immovable property or large amount of capital.
Taxpayers with big tax arrears shall report to the tax authority before disposing their immovable property or large amount of capital.
