Procedure for the Administration of Tax Registration

State Administration of Taxation Decree No. 7

 The Procedure for the Administration of Tax Registration hereby promulgated has been adopted at the 6th administrative conference of the State Administration of Taxation on November 20, 2003 and shall enter into effect as of February 1, 2004.

                                                                    Xie Xuren

                                    Commissioner of the State Administration of Taxation

                                                                Dec. 17, 2003

Procedure for the Administration of Tax Registration

Chapter One  General Provisions

Article 1 In order to standardize the administration of tax registration, strengthen the control of tax revenue sources, this Procedure has been formulated in accordance with the Tax Administration Law of the People's Republic of China (hereinafter referred to as the Tax Administration Law) and the Detailed Rules for the Implementation of the Tax Administration Law of the People's Republic of China (hereinafter referred to as the Detailed Implementation Rules).

Article 2 All enterprises and their branches and subsidiaries and production and business departments in other parts of the country, individual owners of industrial and commercial business and other undertakings engaged in production and business operation shall conduct tax registration in accordance with Tax Administration Law and the Detailed Implementation Rules thereof and the provisions of this Procedure.

Taxpayers other than those listed above but excluding state organs and individuals and rural small businessmen and hawkers engaged in production or business operation without permanent sites shall make tax registration in accordance with Tax Administration Law and the Detailed Implementation Rules thereof and the provisions of this Procedure.

Persons acting as withholding agents in accordance with the tax laws and administrative regulations (excluding state organs) shall conduct tax registration in accordance with Tax Administration Law and the Detailed Implementation Rules thereof and the provisions of this Procedure.

Article 3 Bureaus of national taxes and local taxes at and above the county level are administrations of taxation in charge of handling tax registration responsible for the establishment, alteration and cancellation of tax registration, the examination and renewal of tax registration certificates as well as such matters for extraordinary units.

Article 4 Tax registration certification includes a registration certificate and the duplicates thereof, interim registration certificate and the duplicates thereof.

The certification of tax withholding registration includes the certificate of tax withholding registration and the duplicates thereof.

Article 5 Administrations (and sub-administrations) of national taxes and local taxes shall handle tax registration jointly or separately in the districts under their respective jurisdiction in the light of the scope of administration of taxation formulated by the State Council. In cities where conditions are available, the administrations (or sub-administrations)of national taxes and local taxes may handle tax registration in the principle of "concentration on the basis of the work done first by the district sub-administrations of taxation".

Where administrations (or sub-administrations) of national taxes and administrations (or sub-administrations) of local taxes handle tax registration jointly, they shall issue one copy of registration certificate to the same taxpayer with the prints of the seals of both the administrations (or sub-administrations) of national taxes and administrations (or sub-administrations) of local taxes.

Article 6 Wherever disputes arise between an administration (or sub-administration) of national taxes and an administrations (or sub-administration) of local taxes over which administration (or sub-administration) should be in charge of handling a specific taxpayer's tax registration, the matter should be resolved between the one-step higher administration or sub-administration thereof through consultation.

Article 7 The administrations (or sub-administrations) of national taxes and administrations (or sub-administrations) of local taxes should adopt a unified coding system for tax registration. The codes of tax registration shall be compiled jointly by the administrations (or sub-administrations) of national taxes and administrations (or sub-administrations) of local taxes of the provincial level for the provinces and their local departments.

The tax registration code of an organization as a taxpayer that has already obtained its organization code shall be: district code + organization code compiled by the State Bureau of Technological Supervision; the tax registration code of an individual industrial or commercial business owner shall be the resident ID number of the taxpayer; the tax registration number of a businessperson from a foreign country, or from Hong Kong, Macao or Taiwan of China shall be: district code + number of a proper valid ID certificate (such as passport, pass between Chinese mainland and Hong Kong, Macao and Taiwan, etc.)

Article 8 The administrations (or sub-administrations) of national taxes and administrations (or sub-administrations) of local taxes shall notify each other periodically from time to time of the situation of tax registration and keep each other informed timely of the taxpayers' state of tax registration in the interest of fine management of tax registration.

Article 9 A taxpayer shall present tax registration documents when performing the following formalities:

1. Opening a bank account;

2. Buying blank invoices.

A taxpayer shall produce the tax registration documents to be checked with the relevant information by the tax authorities when performing other formalities in connection with taxation.

Chapter Two  Establishment of Registration

Article 10 Enterprises and their subsidiaries and production and business departments in other parts of the country, individual owners of industry and commerce and other undertakings engaged in production and business operation (hereinafter referred to as taxpayers engaged in production and business operations) shall apply for tax registration with the local tax authorities where they carry out production and/or business operation.

1. A taxpayer engaged in production and business operations having obtained an industrial and commercial business license (including provisional license) shall apply for tax registration within 30 days after obtaining a business license and the tax authorities having making proper checkups shall grant a tax registration certificate and the duplicates thereof (taxpayers engaged in production and business operations with provisional business licenses shall obtain provisional tax registration certificate and the duplicates thereof from the tax authorities).

2. A taxpayer engaged in production and business operations without an industrial and commercial business license but having been permitted by relevant authorities to be established shall apply for tax registration within 30 days after obtaining permission for establishment from the relevant authorities and the tax authorities shall grant after making proper checkups a tax registration certificate and the duplicates thereof.

3. A taxpayers engaged in production and/or business operations without an industrial and commercial business license, nor a permission for establishment from relevant authorities, shall apply for tax registration within 30 days after the commencement of the obligation of paying tax and the tax authorities shall grant upon finishing proper checkups a provisional tax registration certificate and the duplicate thereof.

4. A contractor or leaser with independent power of production and operation, independent financial accounting and making payments of fees or rents to the owner or lessor at fixed intervals shall apply for tax registration to the local tax authorities within 30 days after the signing of the contract or lease and the tax authorities shall grant upon proper checkups the tax registration certificate and the duplicate thereof.

5. A taxpayer engaged in production and/or business operation away from home shall apply for tax registration to the tax authorities of the same county or city where the taxpayer has operated in business or provided labor service for a combined total of 180 days within 12 consecutive months within 30 days after the date of expiration of the 180-day limit and the tax authorities shall grant upon proper checkups a tax registration certificate and the duplicate thereof.

6. An overseas enterprise contracting a construction, installation, assembly or prospecting project or providing labor service in China shall apply to the local tax authorities for tax registration within 30 days after the signing of the contract or agreement and the tax authorities shall grant upon proper checkups a tax registration certificate and the duplicate thereof.

Article 11 Other taxpayers not covered by the provisions of Article 10 of this Procedure, with the exception of state institutions, individuals and rural hawkers with no permanent sites of production or business operation, shall apply for tax registration within 30 days of the occurrence of the tax paying obligation to the local tax authorities of the place where such obligation arises and the tax authorities shall grant upon proper checkups a tax registration certificate and the duplicate thereof.

Article 12 Where disputes arise between two or more tax authorities over where tax registration should be made, the common superior authorities thereof shall determine the place of jurisdiction. In the event of a dispute between a bureau (or sub-bureau) of national taxes and a bureau (or sub-bureau) of local taxes over the matter of tax registration, it shall be resolved in accordance with the provisions of Article 6 of this Procedure.

Article 13 A taxpayer in applying for tax registration shall submit to the tax authorities truthfully the following documents and information in the light of the actual conditions:

1. An industrial and commercial business license or other similar permit of business operation;

2. A contract, agreement and articles of association;

3. The unified organizational code;

4. The ID card, passport or other valid ID certificate of the legal representative, or responsible member of owner.

Other documents and information demanded by the tax authorities of a province, autonomous region or municipality directly under the State Council.

Article 14 In applying for tax registration, a taxpayer shall fill out truthfully a form of application.

The tax registration form shall cover:

1. The name and the number of the ID card, passport or other valid ID document of the institution, legal representative or owner;

2. The residence or business address;

3. The type of registration;

4. The accounting system;

5. The form of production and business operation;

6. The scope of production and operation;

7. The total amount of capital (fund), investment;

8. The term of production and operation;

9. The name and telephone number of the financial chief;

10. Other information specified by the State Administration of Taxation.

Article 15 Provided the documents and information submitted by the applying taxpayer are complete and the content of the tax registration form the taxpayer has filled is found truthful, the tax authorities shall issue a tax registration certificate without delay. In case the documents and information provided by the applying taxpayer are incomplete and the content of the tax registration form the taxpayer has filled is found untruthful, the tax authorities shall notify on the spot the applicant to make the necessary supplement or fill a new form. Should there be obvious doubtful points with regard to the documents and information provided by the applicant, the tax authorities shall make investigations to determine the truthfulness of the documents and information before issuing a tax registration certificate.

Article 16 The main content of a tax registration certificate shall cover: the name of the taxpayer, tax registration code, name of the legal representative or responsible member, address of the production or business operation site, type of registration, form of accounting, scope of production and business (main line and side lines), date of certification, and the effective term of the documents, etc.

Article 17 A taxpayer with the obligation of withholding tax who has registered with the tax authorities shall apply to the tax authorities where its tax registration certificate is issued for registration of tax withholding within 30 days after the date of occurrence of the obligation thereof. The tax authorities shall specify the items for tax withholding on the tax registration certificate and have no need to issue a separate certificate of tax payment withholding.

A person obliged to withhold taxes without the need for applying for tax registration in accordance with the taxation laws and administrative regulations shall apply to the local tax authorities for registration of tax withholding within 30 days after the date of the occurrence of the obligation of tax withholding. The tax authorities shall issue a registration certificate of tax withholding.

Chapter Three    Alteration of Registration

Article 18 In case of changes in the content of the tax registration, the taxpayer thereof shall apply to the original tax authorities for an update of its tax registration.

Article 19 If an taxpayer has updated its tax registration with an administration for industry and commerce, it shall have its tax registration updated with the original tax authorities for tax registration by submitting the following documents and information within 30 days after the date of updating with the administration for industry and commerce.

1. The statement of the update of registration with the administration for industry and commerce and the industrial and commercial business license;

2. Documents proving the changes in the content of the registration of the taxpayer;

3. Other documents issued by the original authorities of tax registration (the original and duplicates and registration statement of the tax registration, etc.);

4. Other relevant information.

Article 20 If the taxpayer has no need to update its registration with the administration for industry and commerce or its changed content of registration has nothing to do with its registration with the administration for industry and commerce, it shall have its tax registration updated with the original tax authorities with the documents listed below within 30 days after the occurrence of the changes in the content of the registration or within 30 days after the day the change(s) was approved or announced by a relevant government institution.

1. Documents proving the changed contents of the registration of the taxpayer;

2. The original documents (original and duplicates and registration statement, etc.) issued by the original tax authorities;

3. Other relevant information.

Article 21 When the taxpayer has provided all the necessary evidence and formation for the updating of the registration, it shall fill a statement for the updating of the content of the registration and the tax authorities shall handle the application after finding the application in compliance with the regulations, and otherwise the tax authorities shall notify the applicant to make necessary changes or supplements.

Article 22 The tax authorities shall accept the application and process the update of the tax registration within 30 days of reception of the application. In the event there are changes in both the registration statement and registration certificate of the taxpayer, the tax authorities shall issue a new tax registration certificate on the basis of the changes. If there is change in the content of the registration statement of the taxpayer but no change in the registration certificate, the tax authorities shall not issue a new registration certificate.

Chapter Four    Registration of Business Suspension and Resumption

Article 23 When an individual industrial and commercial business owner who pays a fixed amount of tax at fixed internals needs to suspend his business, he shall apply to the tax authorities for registration of suspension of business before his business is actually suspended. The term of business suspension should not exceed one year.

Article 24  In applying for business suspension registration, the taxpayer should fill a business suspension registration statement to specify the reasons and term of suspension, the state of tax paying prior to the business suspension and the situation of the buying, use and inventory of blank invoices and clear up all the taxes payable, surcharges on overdue tax payments and fines. The Tax authorities shall collect and keep the applicant's tax registration certificate and the duplicates thereof, the invoice buyer's booklet, the unused invoices and other taxation documents.

Article 25 When a tax paying obligation arises during business suspension, the taxpayer should declare to the tax authorities for tax payment in accordance with the taxation laws and government regulations.

Article 26 A taxpayer should report to the tax authorities for registration of resumption of production or business operation prior to the actual resumption of business and fill truthfully the statements of suspension and resumption of business, collect and start using the tax registration certificate, invoice buyer's booklet and the blank invoices bought previously.

Article 27 If a taxpayer finds it impossible to resume production or business on expiration of the term of business suspension, he should apply to the tax authorities for an extension of the term of business suspension and fill truthfully the "statement of business suspension and resumption".

Chapter Five   Cancellation of Registration

Article 28 In the event of termination of the obligation of paying tax on account of disbanding, bankruptcy, abrogation or other event of an taxpayer, the taxpayer should bring the relevant documents and information to the original tax authorities of tax registration to have its tax registration cancelled prior to its completion of the procedure of cancellation of registration with the administration for industry and commerce and other relevant departments. If cancellation of registration with the administration for industry and commerce and other relevant departments are unnecessary in accordance with the relevant laws and regulations, the taxpayer should bring the documents and other information to the original tax authorities of tax registration to have its tax registration cancelled within 15 days of its business termination approved or declared by the relevant authorities.

When a taxpayer's business license is abrogated by the administration for industry and commerce or its business registration is cancelled by a relevant governmental department, it should apply to the original authorities of tax registration for cancellation of registration within 15 days of the abrogation of business license or cancellation of business registration..

Article 29  In case the change of the residence address or site of business operation of a taxpayer requires a change from the original tax authorities to a new one, it should bring the relevant evidence and other information to the original tax authorities for cancellation of the tax registration before applying to the administration for industry and commerce or other governmental department for an alteration or cancellation of the registration or before the change of its residence and business site; and then apply to the tax authorities of the new address for tax registration within 30 days of the cancellation of the original tax registration.

Article 30 An overseas enterprise contracting building, installation, assembly or prospecting projects or providing labor service in China should bring the original certification and other information to the original authorities of tax registration for cancellation of the tax registration within 15 days of its departure from China.

Article 31  Prior to canceling tax registration, a taxpayer should submit the relevant certification and other information to the tax authorities, clear up the taxable payable and hand in the excess reimbursement or return of tax payments, surcharges on overdue tax payment and other fines, return the unused invoices for cancellation, certificate of tax registration and other taxation certificates and, upon the examination and approval of the tax authorities, complete the cancellation of the tax registration.

Chapter Six Registration for Outbound Operation Examination

Article 32  When a taxpayer has production or business activities in another county (city) or other counties (cities) temporarily, it should bring its tax registration certificate to the original tax authorities to apply for a Certificate of Tax Control for Outbound Business Operation (hereinafter referred to as Outbound Certificate) before starting business activities away from the place of residence.

Article 33 The tax authorities shall issue outbound certificates on the principle of "one certificate for one place" and each certificate shall be of an effective period of 30 days in general and 180 days at maximum.

Article 34 The taxpayer holding an outbound certificate should apply to the tax authorities of the place provided in the outbound certificate for examination and registration and submit the following documents and information before actually starting its business activities there.

1. A duplicate of the tax registration certificate;

2. A Certificate of Tax Control for Outbound Business Operation.

A taxpayer marketing its goods in a place specified in the Outbound Marketing Certificate should fill a Statement of Outbound Marketing of Goods in addition to the necessary documents and information for inspection.

Article 35 After concluding its marketing activities away from home, the taxpayer should submit a Statement of Outbound Marketing of Goods to the tax authorities of that place, clear up the taxes and hand in the unused invoices for cancellation.

Article 36 A taxpayer should bring the Outbound Marketing Certificate to the original tax authorities to perform the procedure of canceling the Outbound Marketing Certificate within 10 days of the expiration of the effective term of the Outbound Marketing Certificate.

Chapter Seven Certification Control

Article 37  The tax authorities should improve the control and administration of taxation certification through making on-the-spot investigations and checkups or exchanging information on the control of taxation certification matter between the tax authorities and the administrations for industry and commerce and between the authorities of national taxes and authorities of local taxes.

Article 38 In case the form of the tax registration changes, calling for replacement of such certificates in a unified way, the matter shall be up to the State General Administration of Taxation to determine.

Article 39 In the event of loss of a tax registration certificate by a taxpayer or withholding agent, it should report to the tax authorities in writing within 15 days of the loss of the certificate, truthfully fill a Statement on the Loss of a Tax Registration Certificate and place a statement of loss in the form of an ad citing the name of the taxpayer, the name, serial number and effective term of the tax registration certificate and the name of the department issuing the certificate in a newspaper approved by the tax authorities and with a newspaper clipping bearing the announcement apply to the tax authorities for a new certificate.

Chapter Eight Extraordinary Case

Article 40 In the event that a taxpayer having performed tax registration fails to pay tax within the officially specified time limit, the tax authorities shall be obliged to order the taxpayer to make correction in a specified time. If the taxpayer fails to make proper correction in time, the tax authorities shall send its personnel to make on-the-spot investigations and if the tax authorities cannot find the taxpayer and make it perform its obligation of paying tax, the investigator shall file a report affirming it as an extraordinary taxpayer for the record and the tax authorities shall suspend the use of its tax registration certificate, invoice buyer's booklet and invoices.

Article 41 When a taxpayer has been listed as an extraordinary taxpayer for more than three months, the tax authorities may invalidate the tax registration certificate thereof and recovery of its payment of the unpaid taxes in accordance with Tax Administration Law and the Detailed Implementation Rules.

Chapter Nine    Legal Liabilities

Article 42  In case a taxpayer fails to apply for tax registration certificate, or change or cancel the tax registration certificate, the tax authorities should order it to make rectification within three days upon discovery of the matter and mete out proper punishment in accordance with the provisions of Clause 1, Article 60 of Tax Administration Law.

If a taxpayer has failed to make tax registration, the tax authorities shall order it to make due rectification within three days on the discovery of the case and mete out punishment in accordance with the provisions of Clause 1 and Clause 2, Article 60 of the Tax Administration Law.

Article 43 When a taxpayer has failed to use its tax registration certificate in compliance with the regulations or has lent it to others, falsified, damaged it, sold it or counterfeited it, it shall be punished in accordance with the provisions of Clause 3, Article 60 of Tax Administration Law.

Article 44 When a taxpayer has obtained a tax registration certificate by deception through false documents, it shall be punished with a fine up to 2,000 yuan, or a fine between 2,000 yuan and 10,000 yuan for a serious case.

Article 45 If a withholding agent has failed to make registration for tax withholding, the tax authorities shall order it to make proper rectification within a time limit of three days upon its discovery and mete a fine up to 2,000 yuan.

Article 46 A taxpayer or a withholding agent in violation of the provisions of this Procedure and refuses to accept the punishment by the tax authorities, the tax authorities may confiscate its invoice or stop selling it invoices.

Article 47 A tax officer who commits malpractice or neglect of duties, performs tax registration for a taxpayer in violation of this Procedure, or abuses his power to cause difficulties with taxpayers or tax withholding agents shall be removed from office and given administrative punishment in accordance with the law.

Chapter Ten  Supplementary Rules

Article 48 Matters involving the logo, seal and document formats of this Procedure shall be determined by the State Administration of Taxation.

Article 49 Power to the interpretation of this Procedure rests with the State Administration of Taxation. The tax authorities of the provinces, autonomous regions and municipalities directly under the jurisdiction of the State Council may formulate concrete rules for the implementation of this Procedure in the light of the local reality.

Article 50 This Procedure shall enter into effect as of February 1, 2004.