Opinions of the State Administration of Taxation on Carrying out the “Spring Breeze Action to Bring Convenience to Taxpayers” in 2019 (Shui Zong Fa [2019] No. 19)

31 January 2019

The State Administration of Taxation has issued the “Opinions of the State Administration of Taxation on Carrying out the ‘Spring Breeze Action to Bring Convenience to Taxpayers' in 2019” on 31 January 2019 (“the Opinions”). The Opinions cover the implementation of measures to reduce taxes, optimizing the tax administration process (including cancelling a batch of 20 matters of tax certification) and strengthening information systems.

Abstract

The State Administration of Taxation has issued the “Opinions of the State Administration of Taxation on Carrying out the ‘Spring Breeze Action to Bring Convenience to Taxpayers' in 2019” on 31 January 2019 (“the Opinions”).

According to the Opinions, tax authorities have formulated altogether 52 measures to facilitate taxpayers in the campaign in 13 areas, including:

• Simplification of tax-related materials and documents: Further cancelling another batch of certifications required in handling tax matters, and will streamline over 25 percent of required materials before the end of 2019;
• Effective handling of VAT invoices: Expanding the scope for small-scale taxpayers to self-issue VAT special invoices to the leasing and business services, scientific research and technological services, household services, repair and other service industries; and cancelling the requirement for all general VAT taxpayers to obtain VAT invoice verification;
• Enhancing efficiency in tax administration procedures: More than 70 percent of tax matters would be concluded going through only one procedure by the end of 2019;
• Optimising the process for claiming VAT refund: Ensuring the average time for the tax departments to review and handle the normal export tax rebates within 10 working days;
• Optimising tax filing: Provide function of pre-filling declaration of information and confirmation by taxpayer upon comprehensive filing of individual income tax;
• Optimising tax payment: Providing more tax payment channels and promoting payment through non-banking institutions.

The Opinions also state that the tax departments will also promote information sharing with other governmental departments to increase efficiency of tax collection and management.