China Releases Administrative Measures on Authorized Tax Collection

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Jun. 17 – With the view to strengthen the administration over authorized tax collection, China’s State Administration of Taxation released the “Administrative Measures for Authorized Tax Collection (Announcement [2013] No. 24, hereinafter referred to as ‘Measures’)” on May 30, which stipulates the scope and conditions of authorized tax collection. Detailed information can be found below.


For the purpose of the Measures, the following terms have been defined as below:

Authorized tax collection 
The tax authorities may, in line with the requirements provided in the “Detailed Rules on Implementing the Tax Collection Administration Law,” entrust related entities or individuals to collect taxes.

Taxation authorities
Taxation authorities mentioned in the Measures shall refer to the taxation authorities at or above the county level.

Authorized collectors
Authorized collectors mentioned in the Measures shall refer to entities or individuals that accept the delegation from the taxation authorities to exercise the rights of authorized collection and bear the obligations provided in the Authorized Collection Agreement.

Scope of Authorized Collection

The scope of authorized collection shall be defined by the taxation authorities based on the “Detailed Rules on Implementing the Tax Collection Administration Law” and the local taxation resource management.

Conditions of Authorized Collection

An authorized collector confirmed by the taxation authority shall have one of the following relationships with the taxpayer:

  • Have a management relationship with the taxpayer
  • Have an economic business transaction relationship with the taxpayer
  • Have a geographical relationship with the taxpayer
  • Have another relationships with the taxpayer that can strengthen tax collection supervision and provide convenience to the taxpayer

Where the authorized collector is an administrative entity, institution, enterprise or other social organization, it shall meet the following conditions:

  • It shall have a fixed premise
  • It shall have a sound internal management system and financial system
  • It shall have personnel who are familiar with the relevant taxation laws and regulations, and can undertake authorized collection according to the relevant laws
  • Other requirements stipulated by tax authorities

Where the authorized collector is an individual, he or she shall meet the following conditions:

  • The individual shall have Chinese nationality, have no criminal record, and have full capacity for civil conduct
  • The individual shall possess relevant taxation knowledge and practical skills to undertake authorized collection
  • Other requirements stipulated by the tax authorities

The Measures also stipulate that authorized collectors shall keep confidential the trade secrets and personal privacy that come to their knowledge during the tax collection process, and shall issue tax vouchers to taxpayers when collecting taxes.

Moreover, authorized tax collectors cannot entrust other entities, organizations or personnel to handle the authorized tax collection, and cannot impose tax prevention measures, tax compulsory enforcement measures, or administrative punishment against taxpayers.

The relevant tax authorities should sign the Authorized Collection Agreement with the authorized collectors and clarify relevant issues including the scope, period, tax categories and handling fees of authorized collection, as well as the rights and responsibilities of both parties. The maximum period of validity for an Authorized Collection Agreement should not exceed three years.

The Measures are scheduled to take effect on July 1, 2013.

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