Law of the People’s Republic of China on the
Administration of Tax Collection

(Adopted at the 27th Meeting of the Standing Committee of
the Seventh National People’s Congress on September 4,
1992, promulgated by Order No.60 of the President of the
People’s Republic of China on September 4, 1992, and
effective as of January 1, 1993)

Contents

  • Chapter I General Provisions
  • Chapter II Tax Administration
  • Section 1 Tax Registration
  • Section 2 Administration of Accounting Books and Vouchers
  • Section 3 Tax Declaration
  • Chapter III Tax Collection
  • Chapter IV Tax Inspection
  • Chapter V Legal Responsibilities
  • Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1 This Law is formulated with a view to
strengthening the administration of tax collection, ensuring
the tax revenue of the State and protecting the legitimate
rights and interests of taxpayers.

Article 2 The administration of tax collection in respect
of all taxes to be collected by the tax authorities in
accordance with law shall be governed by this Law.

Article 3 The imposition of tax or the cessation thereof,
tax reduction, tax exemption and refund of tax as well as
payment of tax unpaid shall be governed by the provisions of
relevant laws; where the State Council is authorized by law
to formulate relevant regulations, the provisions of
relevant administrative rules and regulations formulated by
the State Council shall apply.

No units including governmental organs or individuals may,
in violation of law or administrative rules and regulations,
make decisions regarding the imposition of tax or the
cessation thereof, tax reduction, tax exemption or refund of
tax, or payment of tax unpaid.

Article 4 Units and individuals that are obligated to pay
tax as prescribed by law or administrative rules and
regulations are taxpayers.

Units and individuals that are obligated to withhold and
remit tax or collect and remit tax as prescribed by law or
administrative rules and regulations are withholding agents.

Taxpayers and withholding agents must pay tax or withhold
and remit tax or collect and remit tax in accordance with
the provisions of relevant laws or administrative rules and
regulations.

Article 5 The competent department of taxation under the
State Council shall be in charge of the administration of
tax collection throughout the country.

The local people’s governments at various levels shall
strengthen their leadership in the administration of tax
collection within their respective administrative regions
and support the tax authorities in carrying out their duties
according to law and accomplishing their tasks of tax
collection.

Departments and units concerned shall support and assist
the tax authorities in carrying out their duties according
to law.

No units or individuals shall obstruct the tax authorities
from carrying out their duties according to law.

Article 6 Tax officials must implement the law impartially
and devote themselves to their duties. They shall not extort
or take bribes, practise favouritism and commit malpractice,
neglect their duties, or fail to collect, or undercollect
the amount of tax payable; nor shall they abuse their powers
to overcollect tax or deliberately create difficulties for
taxpayers or withholding agents.

Article 7 Every unit or individual shall have the right to
report any acts contravening the law or the administrative
rules or regulations relating to taxation. The tax
authorities shall maintain confidentiality in respect of the
informants and grant them rewards in accordance with
relevant regulations.

Article 8 “The tax authorities” referred to in this Law
means the tax bureaux at various levels and their
sub-bureaux and tax stations.

Chapter II Tax Administration

Section 1 Tax Registration

Article 9 Enterprises, branches and sites engaged in
production or business operations established in other
places by enterprises, individual businesses as well as
institutions engaged in production or business operations
(hereinafter collectively referred to as taxpayers engaged
in production or business operations) shall, within 30 days
from receipt of the business licence, apply to the tax
authorities for tax registration on presentation of the
relevant documents. Upon examination and verification of
such documents, the tax authorities shall issue the tax
registration certificate.

The scope and methods for tax registration for taxpayers
other than those specified in the preceding paragraph shall
be laid down by the State Council.

Article 10 Any taxpayer engaged in production or business
operations shall, where any change occurs in the contents of
tax registration, within 30 days from the date of completing
the formalities for such change in the business registration
with the administrative department of industry and commerce
or prior to the submission of an application for
cancellation of the business registration to the
administrative department of industry and commerce, apply to
the tax authorities for the change or cancellation of tax
registration on presentation of the relevant documents.

Article 11 Use of tax registration certificates by
taxpayers shall be governed by the relevant regulations
formulated by the competent department of taxation under the
State Council. The tax registration certificates shall not
be lent, altered, damaged, traded or forged.

Section 2 Administration of Accounting Books and Vouchers

Article 12 Taxpayers engaged in production or business
operations or withholding agents shall, in pursuance of the
relevant regulations of the competent departments of finance
and taxation under the State Council, establish accounting
books, keep accounts based on legitimate and valid vouchers
and conduct accounting. Individual businesses that are truly
unable to keep accounting books may keep no accounting books
upon examination and approval by the tax authorities.

Article 13 The financial and accounting systems or
financial and accounting procedures of a taxpayer engaged in
production or business operations shall be submitted to the
tax authorities for the record.

Where the financial and accounting systems or financial and
accounting procedures of a taxpayer engaged in production or
business operations contravene the relevant tax rules of the
State Council or the competent departments of finance and
taxation under the State Council, the calculation and
payment of tax shall be made in accordance with the relevant
tax rules of the State Council or the competent departments
of finance and taxation under the State Council.

Article 14 Invoices shall be printed by enterprises
designated by the competent departments of taxation of the
people’s governments of provinces, autonomous regions or
municipalities directly under the Central Government. No
enterprises without designation by such departments shall
print invoices.

Measures for the administration of invoices shall be worked
out by the State Council.

Article 15 Taxpayers engaged in production or business
operations and withholding agents must take care of
accounting books, vouchers for the accounts, tax payment
receipts and other relevant information in conformity with
the period for such care prescribed by the competent
departments of finance and taxation under the State Council.

Accounting books, vouchers for the accounts, tax payment
receipts and other relevant information shall not be forged,
altered or destroyed without due approval.

Section 3 Tax Declaration

Article 16 Taxpayers must, within the time limit for tax
declaration as prescribed by law or administrative rules and
regulations, or as determined by the tax authorities in
accordance with law or administrative rules and regulations,
complete formalities for tax declaration, submit tax
returns, financial and accounting statements as well as
other relevant information on tax payments required of
taxpayers by the tax authorities in light of the actual
needs.

Withholding agents must, within the time limit for tax
declaration as prescribed by law or administrative rules and
regulations, or as determined by the tax authorities in
accordance with law or administrative rules and regulations,
submit statements on taxes withheld and remitted or
collected and remitted as well as other relevant information
required of withholding agents by the tax authorities in
light of the actual needs.

Article 17 Where a taxpayer or withholding agent is unable
to complete formalities for tax declaration or to submit
statements on the tax withheld and remitted or collected and
remitted within the prescribed time limit, upon examination
and approval by the tax authorities, the time limit may be
extended.

Chapter III Tax Collection

Article 18 The tax authorities shall collect tax in
accordance with law or administrative rules and regulations.
They shall not impose, cease to collect, overcollect or
undercollect tax in violation of law or administrative rules
and regulations.

Article 19 Withholding agents shall perform their
obligations of withholding or collecting tax in accordance
with law or administrative rules and regulations. With
respect to units or individuals that are not obligated to
withhold or collect tax as prescribed by law or
administrative rules and regulations, the tax authorities
shall not request them to perform any obligations of
withholding or collecting tax.

When a withholding agent performs its obligations of
withholding or collecting tax in accordance with law, the
taxpayer shall have no right to refuse. Should a taxpayer
refuse, the withholding agent shall promptly report the case
to the tax authorities for disposition.

The tax authorities shall in accordance with the relevant
regulations pay to withholding agents handling fees for
withholding or collecting tax.

Article 20 A taxpayer or withholding agent shall pay or
remit tax in compliance with the time limit as prescribed by
law or administrative rules and regulations, or as
determined by the tax authorities in accordance with law or
administrative rules and regulations. Where a taxpayer is
unable to pay tax within the prescribed period on account of
special difficulties, it may, upon approval by a tax bureau
(or sub-bureau) at or above the county level, defer the
payment of tax for a maximum period of three months.

Where a taxpayer fails to pay tax within the time limit as
prescribed in the preceding paragraph or a withholding agent
fails to remit tax within the time limit as prescribed in
the preceding paragraph, the tax authorities shall, in
addition to ordering the taxpayer or withholding agent to
pay or remit the tax within a fixed period of time, impose a
surcharge on a daily basis at the rate of 0.2% of the amount
of tax in arrears, commencing on the day the tax payment is
in default.

Article 21 A taxpayer may submit to the tax authorities a
written application for tax reduction or tax exemption in
accordance with law or administrative rules and regulations.

Applications for tax reduction or tax exemption shall be
subject to the examination and approval by the examination
and approval authorities for tax reduction or tax exemption
prescribed by law or administrative rules and regulations.
Any decisions on tax reduction or tax exemption made in
violation of law or administrative rules and regulations by
the local people’s governments at various levels, the
competent departments under the people’s governments at
various levels, or by units or individuals shall be null and
void.

Article 22 When the tax authorities collect tax and
withholding agents withhold or collect tax, they must issue
tax payment receipts to the taxpayers.

Article 23 If a taxpayer is under one of the following
circumstances, the tax authorities shall have the power to
assess the amount of tax payable by the taxpayer:

(1) Establishment of accounting books is not necessary
under this Law;

(2) Accounting books are required to be established by this
Law, but they are not established;

(3) Accounting books are established, but the accounts are
not in order or the information on costs, receipt vouchers
and expense vouchers are incomplete and difficult to check;

(4) Where an obligation to pay tax arises, the taxpayer
fails to complete the formalities for tax declaration within
the prescribed time limit, and, after having been ordered by
the tax authorities to make tax declaration within a fixed
period of time, still fails to do so upon expiration of the
period.

Article 24 The payment or receipt of prices or charges in
business transactions between an enterprise or an
establishment or a site set up in China by a foreign
enterprise engaged in production or business operations, and
its associated enterprises, shall be made in the same manner
as the payment or receipt of prices or charges in business
transactions between independent enterprises. Where the
payment or receipt of prices or charges is not made in the
same manner as in business transactions between independent
enterprises and results in a reduction of the taxable
revenue or income, the tax authorities shall have the right
to make reasonable adjustments.

Article 25 With respect to a unit or an individual engaged
in business operations without a business licence, the case
shall be dealt with by the administrative department of
industry and commerce in accordance with law. In addition,
the tax authorities shall assess the amount of tax payable
by such unit or individual and order it or him to make the
tax payment. Should such unit or individual fail to make the
tax payment, the tax authorities may distrain the
commodities or goods of a value corresponding to the amount
of tax payable. If the amount of tax payable is paid after
the distraint, the tax authorities must immediately remove
the distraint and return the commodities or goods
distrained. If the amount of tax payable is still not paid
after the distraint, the commodities or goods which have
been distrained shall, upon approval of the commissioner of
a tax bureau (or sub-bureau) at or above the county level,
be sold by auction and the proceeds therefrom shall be used
to offset the amount of tax payable.

Article 26 Where the tax authorities have grounds to
believe that a taxpayer engaged in production or business
operations has committed any act of tax evasion, the tax
authorities may order the taxpayer to pay the tax payable
within a time limit prior to the prescribed date of tax
payment. If within such time limit the tax authorities
discover that there are obvious signs that the taxpayer has
transferred or concealed its taxable commodities, goods or
other property, or taxable income, the tax authorities may
order the taxpayer to provide a guaranty for tax payment. If
the taxpayer is unable to provide a guaranty for tax
payment, the tax authorities may, upon approval of the
commissioner of a tax bureau (or sub-bureau) at or above the
county level, adopt the following tax preservative measures:

(1) To notify in writing the bank or any other financial
institution with which the taxpayer has opened an account to
stop payment on a temporary basis from the taxpayer’s
deposits of an amount corresponding to the amount of tax
payable;

(2) To distrain or seal up the taxpayer’s commodities,
goods or other property of a value corresponding to the
amount of tax payable.

In the event that the taxpayer makes the tax payment within
the time limit prescribed in the preceding paragraph, the
tax authorities must immediately lift the tax preservative
measures. Should the taxpayer fail to make the tax payment
on expiration of the time limit, the tax authorities may,
upon approval of the commissioner of a tax bureau (or
sub-bureau) at or above the county level, notify in writing
the bank or any other financial institution with which the
taxpayer has opened an account to withhold and remit the
amount of tax payable from the taxpayer’s deposits from
which payment has been stopped on a temporary basis, or sell
by auction the commodities, goods or property which has been
distrained or realed up and use the proceeds therefrom to
offset the amount of tax payable.

Where the legitimate interests of a taxpayer are
jeopardised due to the inappropriate adoption of tax
preservative measures or the failure of the tax authorities
to immediately lift such measures after the taxpayer has
made the tax payment within the prescribed time limit, the
tax authorities shall be liable for compensation.

Article 27 Where a taxpayer engaged in production or
business operations or a withholding agent fails to pay or
remit tax within the prescribed time limit, or a tax payment
guarantor fails to pay the guaranteed amount of tax within
the prescribed time limit, the tax authorities shall order
the same to pay the tax within a fixed period of time. In
case of failure to pay the tax within such period, the tax
authorities may, upon approval of the commissioner of a tax
bureau (or sub-bureau) at or above the county level, adopt
the following compulsory enforcement measures:

(1) To notify in writing the bank or any other financial
institution with which the taxpayer, withholding agent or
tax payment guarantor has opened an account to withhold and
remit the amount of tax from its deposits;

(2) To distrain, seal up or sell by auction the
commodities, goods, or other property of the taxpayer,
withholding agent or tax payment guarantor, of a value
corresponding to the amount of tax payable, and to use the
proceeds therefrom to offset the amount of tax payable.

The tax authorities shall, while adopting the compulsory
enforcement measures, carry out compulsory enforcement with
regard to the surcharge on tax in arrears which has not been
paid by the above-mentioned taxpayer, withholding agent or
tax payment guarantor.

Article 28 Should a taxpayer who has not paid or has
underpaid the amount of tax payable need to leave China, it
shall settle the amount of tax payable with, or provide a
guaranty to, the tax authorities, before leaving the
country. If the taxpayer neither settles the amount of tax
payable nor provides a guaranty, the tax authorities may
notify the exit administration authorities to prevent the
taxpayer from leaving the country.

Article 29 The tax authorities must issue a receipt when
distraining commodities, goods or other property, and issue
a detailed list when sealing up commodities, goods or other
property.

Article 30 After discovering that a taxpayer has paid an
amount of tax in excess of the tax payable, the tax
authorities must immediately refund the excess amount; where
a taxpayer discovers its excess payment within three years
from the date of the tax payment, it may claim a refund of
the excess amount of tax from the tax authorities, which
shall immediately refund it after examination and
verification of the case.

Article 31 In case that a taxpayer or withholding agent
fails to pay tax, or underpays tax, due to the
responsibility of the tax authorities, the tax authorities
may within three years require the taxpayer or withholding
agent to pay the tax in arrears, without, however, the
imposition of any surcharge thereon.

In case that a taxpayer or withholding agent fails to pay
tax, or underpays tax, through its own faults, such as
miscalculation, the tax authorities may within three years
pursue the collection of the tax in arrears. Under special
circumstances, the period for pursuing the collection of the
tax in arrears may be extended to ten years.

Chapter IV Tax Inspection

Article 32 The tax authorities shall have the power to
conduct the following tax inspections:

(1) To inspect a taxpayer’s accounting books, vouchers for
the accounts, statements and relevant information; to
inspect a withholding agent’s accounting books, vouchers
for the accounts and relevant information in respect of the
amount of tax withheld and remitted or collected and
remitted;

(2) To inspect a taxpayer’s taxable commodities, goods or
other property at the taxpayer’s sites where production or
business operations are conducted and places where goods are
stored; to inspect a withholding agent’s operational
conditions relating to the withholding and remittance of tax
or the collection and remittance of tax;

(3) To order a taxpayer or withholding agent to furnish
documents, evidentiary materials and information pertaining
to the payment of tax or the amount of tax withheld and
remitted or collected and remitted;

(4) To make inquiries of a taxpayer or withholding agent
regarding issues and particulars relevant to the payment of
tax or the amount of tax withheld and remitted or collected
and remitted;

(5) To inspect, at railway stations, docks, airports,
postal enterprises and their branches, supporting documents,
vouchers and information pertaining to the taxable
commodities, goods or other property which a taxpayer has
delivered for carriage or sent by post;

(6) Upon approval of the commissioner of a tax bureau (or
sub-bureau) at or above the county level, to examine and
verify the deposit accounts that a taxpayer engaged in
production or business operations or a withholding agent has
opened with a bank or any other financial institution, on
the strength of a permit, which is of a nationally unified
form, for the inspection of deposit accounts. The
examination and verification of the savings deposits of a
taxpayer engaged in production or business operations shall
be subject to the review by a county sub-branch or a
municipal (at the county level) sub-branch of a bank or a
district office of a municipal branch of a bank, which shall
designate a subordinate savings office to provide the
relevant information.

Article 33 A taxpayer or withholding agent must subject
itself to tax inspections conducted by the tax authorities
in accordance with law, report the particulars truthfully
and provide relevant information, and shall not refuse to be
inspected or conceal any facts.

Article 34 When the tax authorities conduct tax inspections
in accordance with law, the departments and units concerned
shall give support and assistance, truthfully report the
particulars of taxpayers, withholding agents and other
parties concerned in respect of the payment of tax and the
amount of tax withheld and remitted or collected and
remitted, and furnish the relevant information and
evidentiary materials to the tax authorities.

Article 35 The tax authorities may, when investigating a
case concerning violation of any tax laws or regulations,
make notes, tape-recordings, video-recordings,
photographings and duplications of the relevant particulars
and information pertaining to the case.

Article 36 When conducting tax inspections, the officials
sent by the tax authorities shall produce tax inspection
certificates and shall have the duty to keep confidentiality
for the persons under inspection.

Chapter V Legal Responsibilities

Article 37 Where a taxpayer has committed any of the
following acts, the tax authorities shall order it to
rectify within a fixed period of time. Those failing to
rectify upon expiration of the period may be punished by the
tax authorities with a fine of not more than 2,000 yuan, if
the circumstances are serious, with a fine of not less than
2,000 yuan but not more than 10,000 yuan.

(1) Failure to apply for tax registration, change or
cancellation of tax registration within the prescribed time
limit;

(2) Failure to establish and take care of the accounting
books, or to take care of the vouchers for the accounts and
the relevant information in accordance with relevant
regulations;

(3) Failure to furnish reports on the financial and
accounting systems or the financial and accounting
procedures to the tax authorities for record in accordance
with relevant regulations.

Article 38 Where a withholding agent has failed to
establish and take care of the accounting books for the tax
withheld and remitted or collected and remitted, or to take
care of the vouchers for the accounts and the relevant
information regarding the tax withheld and remitted or
collected and remitted, in accordance with relevant
regulations, the tax authorities shall order it to rectify
within a fixed period of time. Those failing to rectify upon
expiration of the period may be punished by the tax
authorities with a fine of not more than 2,000 yuan, if the
circumstances are serious, with a fine of not less than
2,000 yuan but not more than 5,000 yuan.

Article 39 Where a taxpayer has failed to go through
formalities for tax declaration within a prescribed time
limit or a withholding agent has failed to furnish
statements on the tax withheld and remitted or collected and
remitted to the tax authorities within a prescribed time
limit, the tax authorities shall order the taxpayer or
withholding agent to rectify within a fixed period of time
and may impose a fine of not more than 2,000 yuan. Those
failing to rectify upon expiration of the period may be
punished with a fine of not less than 2,000 yuan but not
more than 10,000 yuan.

Article 40 “Tax evasion” means that a taxpayer fails to
pay, or underpays the amount of tax payable by means of
forging, altering, concealing or destroying without
authorization accounting books or vouchers for the accounts,
or overstating expenses or omitting or understating incomes
in accounting books, or filing false tax returns. Where the
amount of tax evaded accounts for more than ten percent of
the amount of tax payable and is over 10.000 yuan, or where
the taxpayer commits tax evasion again after having been
twice subjected to administrative sanctions by the tax
authorities for tax evasion, the tax authorities shall, in
addition to pursuing the payment of tax which has been
evaded by the taxpayer, impose a punishment on the taxpayer
in accordance with the provisions in Article 1 of the
Supplementary Provisions Regarding the Imposition of
Punishment in Respect of Offences of Tax Evasion and Refusal
to Pay Tax. Where the amount of tax evaded is under 10,000
yuan or accounts for less than ten percent of the amount of
tax payable, the tax authorities shall pursue the payment of
the tax evaded and impose a fine of not more than five times
the amount of tax evaded.

Where a withholding agent fails to pay, or underpays the
tax which has been withheld or collected by means specified
in the preceding paragraph, and where the amount in question
accounts for not less than ten percent of the amount of tax
payable and is over 10,000 yuan, the withholding agent shall
be punished in accordance with the provisions in Article 1
of the Supplementary Provisions Regarding the Imposition of
Punishment in Respect of Offences of Tax Evasion and Refusal
to Pay Tax. Where the amount in question is under 10,000
yuan or accounts for less than ten percent of the amount of
tax payable, the tax authorities shall pursue the payment of
the amount of tax the withholding agent has failed to pay or
has underpaid and impose a fine of not more than five times
the amount of tax which has not been paid or has been
underpaid.

Article 41 Where a taxpayer that has not paid the tax due
adopts the means of transferring or concealing its property,
thus resulting in the tax authorities’ inability to pursue
the payment of the tax in arrears, and where the amount in
question is over 10,000 yuan, the tax authorities shall, in
addition to pursuing the payment of the tax in arrears,
impose a punishment on the taxpayer in accordance with the
provisions in Article 2 of the Supplementary Provisions
Regarding the Imposition of Punishment in Respect of
Offences of Tax Evasion and Refusal to Pay Tax. Where the
amount in question is less than 10,000 yuan, the tax
authorities shall pursue the payment of the tax in arrears,
and impose a fine of not more than five times the amount of
tax in arrears.

Article 42 Where an enterprise or institution has committed
an illegal act specified in Article 40 or 41 of this Law and
where such act constitutes a crime, the tax authorities
shall impose a punishment in accordance with the provisions
in Article 3 of the Supplementary Provisions Regarding the
Imposition of Punishment in Respect of Offences of Tax
Evasion and Refusal to Pay Tax. Where such act does not
constitute a crime, the tax authorities shall pursue the
payment of the amount of tax which the enterprise or
institution has failed to pay or has underpaid and impose a
fine of not more than five times the amount of tax which has
not been paid or has been underpaid.

Article 43 Where a taxpayer fails to pay or underpays the
amount of tax payable by virtue of bribing tax officials,
the taxpayer shall be punished in accordance with the
provisions in Article 4 of the Supplementary Provisions
Regarding the Imposition of Punishment in Respect of
Offences of Tax Evasion and Refusal to Pay Tax.

Article 44 Where an enterprise or institution has
fraudulently obtained from the State a tax refund for
exports by deceptive means such as filing false export
declaration with regard to the commodities it produces or
operates, and where the amount of the tax refund is over
10,000 yuan, the tax authorities shall, in addition to
pursuing the repayment of the tax refund which the
enterprise or institution has fraudulently obtained, impose
a punishment in accordance with the provisions in paragraph
1 of Article 5 of the Supplementary Provisions Regarding the
Imposition of Punishment in Respect of Offences of Tax
Evasion and Refusal to Pay Tax. Where the amount of the tax
refund for exports which has been fraudulently obtained from
the State is less than 10,000 yuan, the tax authorities
shall pursue the repayment of such tax refund and impose on
the enterprise or institution a fine of not more than five
times the amount of the tax refund which has been
fraudulently obtained.

Where a unit or an individual other than those specified in
the preceding paragraph has fraudulently obtained tax refund
for exports from the State, the tax authorities shall, in
addition to pursuing the repayment of the tax refund which
the unit or individual has fraudulently obtained, impose a
punishment thereon in accordance with the provisions in
paragraph 2 of Article 5 of the Supplementary Provisions
Regarding the Imposition of Punishment in Respect of
Offences of Tax Evasion and Refusal to Pay Tax. Where the
amount of the tax refund in question is relatively small so
as not to constitute a crime, the tax authorities shall
pursue the repayment of the tax refund which the unit or
individual has fraudulently obtained, and impose a fine
thereon of not more than five times the amount of the tax
refund which has been fraudulently obtained.

Article 45 “Refusal to pay tax” means the refusal to pay
tax with resort to violence or menace. Where refusal to pay
tax occurs, the tax authorities shall, in addition to
pursuing the payment of the amount of tax a taxpayer has
refused to pay, impose a punishment thereon in accordance
with the provisions in paragraph 1 of Article 6 of the
Supplementary Provisions Regarding the Imposition of
Punishment in Respect of Offences of Tax Evasion and Refusal
to Pay Tax. Where the circumstances are trivial so as not to
constitute a crime, the tax authorities shall pursue the
payment of the amount of tax the taxpayer has refused to pay
and impose a fine of not more than five times the amount of
tax the taxpayer has refused to pay.

Whoever has refused to pay tax with resort to violence and
has caused serious bodily injury to or death of another
person shall be subjected to a heavier punishment based on
the crime of inflicting bodily injury or committing homicide
and shall be imposed a fine thereon in accordance with the
provisions in paragraph 2 of Article 6 of the Supplementary
Provisions Regarding the Imposition of Punishment in Respect
of Offences of Tax Evasion and Refusal to Pay Tax.

Article 46 Where a taxpayer engaged in production or
business operations or a withholding agent that has been
ordered by the tax authorities to pay, within a fixed period
of time, the amount of tax which should have been paid or
remitted but has not been paid or has been underpaid within
the prescribed time limit, still fails to pay the amount of
tax upon expiration of the period, the tax authorities may,
in addition to pursuing the payment of the amount of tax the
taxpayer or withholding agent has failed to pay or has
underpaid,through the adoption of the compulsory enforcement
measures as prescribed in Article 27 of this Law, impose a
fine thereon of not more than five times the amount of tax
which has not been paid or has been underpaid.

Article 47 A withholding agent that has failed to withhold
or collect the amount of tax which should have been withheld
or collected shall pay the amount of tax which should have
been withheld or collected, unless the withholding agent has
promptly reported to the tax authorities the circumstances
in which the taxpayer refused to have the amount of tax
withheld or collected.

Article 48 Where invoices are printed in violation of the
provisions in Article 14 of this Law, the tax authorities
shall destroy the invoices which have been illegally
printed, confiscate the illicit gains therefrom, and impose
a fine.

Article 49 The administrative sanctions prescribed in this
Law shall be decided by a tax bureau (or sub-bureau) at or
above the county level. The imposition of fine of not more
than 1,000 yuan on an individual business, or a unit or an
individual that conducts business operations without a
business licence shall be decided by the tax station
concerned.

Upon receiving a fine, the tax authorities must issue a
receipt.

Article 50 Where violence or menace is used to obstruct tax
officials from performing their duties in accordance with
law, the offender shall be investigated for criminal
responsibilities in accordance with the provisions in
Article 157 of the Criminal Law. Where tax officials are
refused to perform, or are obstructed from performing, their
duties in accordance with law, but no violence or menace has
been used, the offender shall be punished by the public
security authorities pursuant to the provisions of the
Regulations on the Administrative Penalties for Public
Security.

Article 51 The people’s courts and the tax authorities
shall turn over all the incomes from fines and confiscations
to the State Treasury.

Article 52 Where tax officials collude with taxpayers or
withholding agents, or instigate or assist the same to
commit any offence specified in Article 40, 41, 42, or 44 of
this Law, such tax officials shall be punished in accordance
with the provisions regarding joint crimes stipulated in the
Criminal Law. Where the offence does not constitute a crime,
the tax officials in question shall be subjected to
administrative sanctions.

Article 53 Where tax officials, by taking advantage of
their positions and powers, accept or extort money or
property from taxpayers or withholding agents, and where
such act constitutes a crime, such tax officials shall be
investigated for criminal responsibilities based on the
crime of bribery. Where such act does not constitute a
crime, the tax officials in question shall be subjected to
administrative sanctions.

Article 54 Where tax officials through neglect of duty
either fail to collect, or undercollect the amount of tax
payable, thus causing serious losses to the tax revenue of
the State, such tax officials shall be investigated for
criminal responsibilities in accordance with the provisions
in Article 187 of the Criminal Law. Where such act does not
constitute a crime, the tax officials in question shall be
subjected to administrative sanctions.

Tax officials who abuse their powers and deliberately
create difficulties for taxpayers or withholding agents
shall be subjected to administrative sanctions.

Article 55 Where decisions regarding the imposition of tax
or the cessation thereof, tax reduction, tax exemption or
refund of tax, or payment of tax underpaid, have been made
in violation of Law or administrative rules and regulations,
such decisions shall be revoked in accordance with this Law.
In addition, the amount of tax that was due but not
collected shall be collected and the amount of tax that was
not due but collected shall be refunded, and the persons
directly responsible shall be investigated for
administrative responsibilities by the authorities at a
higher level.

Article 56 Where a taxpayer, withholding agent or tax
payment guarantor has a tax dispute with the tax
authorities, it must first pay or remit the amount of tax
payable and surcharge for tax in arrears in accordance with
the relevant laws or administrative rules and regulations,
and then may, within 60 days from receiving the payment
receipt issued by the tax authorities, apply to the tax
authorities at the next higher level for a reconsideration.
The tax authorities at the next higher level shall, within
60 days from receiving the application for reconsideration,
make a reconsideration decision. If any party is not
satisfied with the reconsideration decision, it may
institute legal proceedings in the people’s court within 15
days from receiving the written reconsideration decision.

Where a party concerned is not satisfied with the sanction
decision or the compulsory enforcement measures or tax
preservative measures of the tax authorities, it may, within
15 days from the receipt of the notice of sanctions or from
the date on which the tax authorities adopted the compulsory
enforcement measures or tax preservative measures, apply for
a reconsideration to the authorities at the level next
higher to the authorities that have made the sanction
decision or adopted the compulsory enforcement measures or
tax preservative measures. If the party concerned is not
satisfied with the decision made after reconsideration, it
may, within 15 days from the receipt of the reconsideration
decision, institute legal proceedings in the people’s
court. The party concerned may also, within 15 days from the
receipt of the notice of sanctions or from the date on which
the tax authorities adopted the compulsory enforcement
measures or tax preservative measures, institute legal
proceedings directly in the people’s court. During the
period of reconsideration and litigation, the compulsory
enforcement measures and tax preservative measures shall not
be suspended.

If the party concerned has not applied for a
reconsideration of the sanction decision made by the tax
authorities, nor instituted legal proceedings in the
people’s court within the prescribed time limit, nor
complied with the sanction decision, the tax authorities by
which the sanction decision was made may apply to the
people’s court for compulsory enforcement of the decision.

Chapter VI Supplementary Provisions

Article 57 A taxpayer or withholding agent may entrust a
tax agent with the handling of tax affairs on its behalf.

Article 58 The administration of collection of agricultural
tax, animal husbandry tax, cultivated land usage tax and
deed tax shall be conducted with reference to the relevant
provisions of this Law.

The administration of collection of Customs duties, ship
tonnage dues and the taxes collected by the Customs on
behalf of the tax authorities shall be conducted in
accordance with the provisions of the relevant laws or
administrative rules and regulations.

Article 59 If any treaties or agreements on tax concluded
between the People’s Republic of China and foreign
countries contain provisions differing from those of this
Law, the provisions of such treaties or agreements shall
apply.

Article 60 If any tax laws promulgated prior to the coming
into force of this Law contain provisions differing from
those of this Law, the provisions of this Law shall apply.

Article 61 Rules for the implementation of this Law shall
be formulated by the State Council in accordance with this
Law.

Article 62 This Law shall come into force as of January 1,
1993. The Interim Regulations of the People’s Republic of
China on the Administration of Tax Collection promulgated by
the State Council on April 21, 1986 shall be annulled
simultaneously.