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China Business Insights: Draft Amendment to the ‘Law of the People’s Republic of China Concerning the Administration of Tax Collection’

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The China Business Group prepared this alert based on information provided by the Grant Thornton International Ltd member firm in the People’s Republic of China, Grant Thornton China.

On Jan. 5, 2015, the Legislative Affairs Office of the State Council of the People’s Republic of China (PRC) released a “Notice of Draft Amendment to Law of the People’s Republic of China Concerning the Administration of Tax Collection” (draft amendment) for public opinion. Any suggestions or opinions could be provided by Feb. 3, 2015. The draft amendment further revised the 2013 version of the taxation collection law to be in line with reform of the current taxation system, which was proposed in the Third Plenary Session of the 18th Communist Party of China Central Committee.

The following table summarizes salient points in the draft amendment:



In conclusion, the draft amendment is a positive development for PRC taxpayers, deepens the improvement of the taxation system and releases pressure on the taxpayer. However, because the draft amendment has not taken effect, foreign investors are advised to stay tuned to developments as rules about the sectors in which they are interested may be relaxed in the near future.

Contacts: Please contact any of the following professionals for details:

Sandy Chu
Principal & National Leader — China Business Group
Grant Thornton LLP
757 Third Ave.
New York, N.Y. 10017
T +1 212 542 9970
E sandy.chu@us.gt.com

Wilfred Chiu
Head of Tax Services — Beijing
Grant Thornton China
10th floor, Scitech Place, 22 Jianguomen Wai Ave.
Chaoyang District
Beijing 100004, China
T + 86 10 8566 5828
E wilfred.chiu@cn.gt.com

Rose Zhou
Head of Tax Services — Shanghai
Grant Thornton China
45/F Raffles City, 268 Xizang Zhong Road
Shanghai 200001, China
T + 86 21 2322 0298
E rose.zhou@cn.gt.com

Tracy Ying
Tax Director — Shenzhen
Grant Thornton China
Mid-area 14th floor, Great China International
Exchange Square, Jintian South Road, Futian District
Shenzhen 518048, China
T +86 755 3299 5844
E tracy.ying@cn.gt.com

Enoch Chan
Tax Partner — Guangzhou
Grant Thornton China
Litong Square 10th floor, Zhujiang East Road, Zhujiang New City, Tianhe District
Guangzhou 510623, China
T +86 20 3896 3388
E enoch.chan@cn.gt.com

This information is potentially subject to translation errors or omissions. It does not represent any type of tax advice whatsoever.

The information contained herein is general in nature and based on authorities that are subject to change. It is not intended and should not be construed as legal, accounting or tax advice or opinion provided by Grant Thornton China, Grant Thornton US or any Grant Thornton member firm to the recipient. This material may not be applicable to or suitable for specific circumstances or needs and may require consideration of the recipient’s facts and circumstances. Contact your local Grant Thornton member firm or other tax professionals prior to taking any action based upon this information. Grant Thornton member firms assume no obligation to inform the reader of any changes in tax laws or other factors that could affect information contained herein.

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