Announcement of State Administration of Taxation No. 10 2017

In order to innovate tax payment services methods and continue to promote the reform of streamlining administration, delegating power, improving regulation, and strengthening services, State Administration of Taxation decided to provide alert services of policy risks of corporate income tax final settlement for taxpayers (hereinafter referred to as “ tax policy risk alert services”). The announcement is as follows:
    I. Tax policy risk alert services mean that when taxpayers do final settlement of corporate income tax, before taxpayers apply for taxdeclaration, tax authorities will use internal laws and connections of tax registration information, tax declaration information, financial and accounting information, record filing material information and third-party tax information, and modern technological means to provide risk alert services on the logicality of tax calculation, rationality of filed data, and the correlation between tax and financial indicators based on current tax laws and regulations and relevant administrative provisions. The aim is to help taxpayers increase tax compliance and reduce risks of tax payment.
    II. The target of the tax policy risk alert services is the resident enterprise taxpayer who conducts audit collection and makes tax declaration online.
    III. The tax policy risk alert service procedure:
    (1)After taxpayers fill in the Tax Return Form for the Annual Payment of Enterprise Income Tax of the People’s Republic of China (Type A, 2014 version) and choose the “risk alert services”, the system will do risk scanning of the data and information in the form submitted by taxpayers and send the risk alert information to taxpayers within very short time.
    (2) After receiving the risk alert information sent by the system, taxpayers can voluntarily choose to revise the information, adjust, change and complement data or information. Taxpayers can also directly enter the tax declaration process.
    (3) After revising the risk alert information, taxpayers can choose “risk alert service” again to see whether the risk alert problems have been solved, or taxpayers can also directly enter the tax declaration process.
    IV. Note
    (1) The tax policy risk alert service does not change the rights and obligations of taxpayers to calculate tax payment by themselves in accordance with law, enjoy legitimate rights and interests and shoulder legal liabilities.
    (2) The tax policy risk alert service is a tax service provided to taxpayers by tax authorities. Taxpayers can voluntarily choose risk alert service and decide whether to revise alert information based on their own business conditions.
    (3) The tax policy risk alert service is provided before taxpayers apply for tax declaration. Taxpayers need to submit their companies’ financial statements, record filing form of the preferential items of corporate income tax and other information to the tax authorities through the internet one day before they apply for tax declaration. Taxpayers do not have to submit the information repeatedly if they have already submitted the above-mentioned information.
    V. This announcement comes into force on the date of promulgation. Before the announcement is published and implemented, the system will not provide tax policy risk alert services if taxpayers have already completed the final settlement tax declaration of the corporate income tax in 2016.
    Hereby Notice!

                                                                                                     State Administration of Taxation
                                                                                                                     April 18th, 2017