22 Dec 2017 China Tax & Investment Express - United States

1 Issue No. 2017049. 22 Dec 2017. China Tax Center China Tax &. Investment Express China Tax & Investment Express Tax circulars (CTIE)* brings you the latest tax and business announcements on Public notice (PN) regarding certain administrative matters related to a weekly basis. CTIE provides a Value-added Tax (VAT) normal invoices (SAT PN [2017] No. 44). synopsis of each announcement including a link that leads you to Synopsis the full content of the announcement (in Chinese). On 5 December 2017, the State Administration of Taxation (SAT). Please feel free to contact your released SAT PN [2017] No.

2 44 ( PN 44 ) to specify certain matters EY client service professionals related to the administration of VAT normal invoices. for further assistance if you find the announcements have an Since the invoice codes of VAT normal invoices (electronic version) and impact on your business VAT normal invoices (rolled version) are both formed with 12 digital operations. numbers, according to PN 44, the SAT shall adjust the invoice code of CTIE does not replace our China VAT normal invoices (folding version ( ), , the most usual paper Tax & Investment News* which VAT normal invoices issued in three layers) from 10 to 12 digital will continue to be prepared and numbers from 1 january 2018.

3 Distributed to provide more in- depth analyses of tax and The current VAT normal invoices (folding version) with invoice codes of business developments in China . 10 digital numbers in stock are still valid to be used. *If you wish to access the previous issues of CTIE and China Tax &. Investment News, please contact us. China Tax & Investment Express 1. Upon the effectiveness of PN 44, , 1 january 2018, taxpayers shall be able to issue VAT normal invoices (folding version) with invoice codes of 12 digital numbers under their company names via the VAT invoice administrative system and according to the prevailing tax policies.

4 The rules of invoice coding for VAT normal invoices (folding version) are also specified in PN 44. You can click this link to access the full content of PN 44: You can click this link to access the full content of the Interpretation of PN 44 from the SAT: Notice regarding the Rules for Administrative Litigation Tax Administration (Shuizongfa [2017] No. 135). Synopsis According to the Administrative Litigation Law of the People's Republic of China (PRC), Tax Administration and Collection Law of the PRC and other relevant regulations, the SAT released the Rules for Administrative Litigation for Tax Administration (hereinafter referred to as the Rules ) via Shuizongfa [2017] No.

5 135 on 29. November 2017. According to the Rules, a tax authority should submit all the evidence, supporting regulations, along with statements of defense, lists of evidence, legal basis, authorization letters and IDs of legal representatives and other relevant documents to the people's court within 15 days upon receiving the notice of appearance and statement of claim (duplicate version). In case the tax authority cannot submit the evidence within the prescribed time frame due to force majeure, and the plaintiff or third party has submitted new justifications or evidence which are not included in the administrative proceedings, the tax authority should lodge separate written applications to the people's court in time for extension of submitting evidence and additional evidence.

6 During the inspection of the court, a tax authority should answer inquiries of the court by stating its case based on the contents of the statement of defense. During the presentation of evidence, a tax authority should present its evidence and state the names, sources, contents for such evidence and the purposes of presenting such evidence. As prescribed in the Rules, a tax authority should execute the effective judgment, ruling and mediation without decline, or delay. Where the plaintiff refuses to execute an effective judgment, ruling and mediation, the tax authorities shall enforce according to the law or apply to the people's court for enforcement.

7 The Rules shall become effective on 1 january 2018 and replace the Trial Rules for Administrative Litigation for Tax Administration (hereinafter referred to as the Trial Rules ) released via Guoahsuifa [1995] No. 9 at the same time. You can click this link to access the full content of the Rules: You can click this link to access the full content of the Trial Rules: You can click this link to access the full content of the Administrative Litigation Law of the PRC: You can click this link to access the full content of the Tax Administration and Collection Law of the PRC: China Tax & Investment Express 2.

8 Customs circular PN regarding the promotion of online application for tax reduction/exemption and the cancellation of the relevant record-filing requirements (GAC PN [2017] No. 58). Synopsis To facilitate customs clearance processes, on 10 December 2017, the General Administration of Customs (GAC) released GAC PN [2017] No. 58 ( PN 58 ) to promote online application for tax reduction/exemption and the cancellation of the relevant record-filing requirements to customs offices over the country: According to PN 58, unless otherwise specified by the GAC, applicants or their authorized persons (hereinafter referred to as the applicants ) shall be able to submit application forms for tax reduction/exemption and supporting documents in digital format via the QuickPass ( , the pre-entry system of China E-port) instead of submission in paper form.

9 All the supporting data should be converted into digital format according to GAC PN. [2014] No. 69 ( PN 69 , , PN regarding launching of format standards of scanned and converted documentation for online customs clearance reform). However, paper documentations would still be required if they are required by the supervising customs offices. An applicant may submit the information related to its project while it applies for tax reduction/exemption for importation of commodities for the first time by lodging the application via the function of application for tax reduction/exemption of QuickPass.

10 No ex ante record-filing is required. PN 58 became effective on 15 December 2017. The detailed rules for the online application are also specified in the attachment of PN 58. You can click this link to access the full content of PN 58: You can click this link to access the full content of PN 69: Other business, customs and tax related circulars recently announced by central government authorities: Reply to issues related to taxable income derived by taxpayers from the transfer of gas station properties for Land Appreciation Tax purposes (Shuizonghan [2017] No. 513). PN regarding copying and rolling out the third batch of reform arrangements implemented in the Pilot Free Trade Zones nationwide (AQSIQ PN [2017] No.)