OVERVIEW OF CHINA'S CURRENT TAX SYSTEM
Tax Legislation
For
the time being, the State Organs having authority to
formulate tax laws or tax policy mainly include National
People' s Congress and its Standing Committee, State
Council, Ministry of Finance, State Administration of
Taxation, Tariff and Classification Committee of the
State Council, and General Administration of Customs.
(a) Tax laws are enacted by the National People' s Congress,
e.g., the Individual Income Tax Law of the People' s
Republic of China; or enacted by the Standing Committee
of the National People's Congress, e.g., the Tax Collection
and Administration Law of the People's Republic of China.
(b) The administrative regulations and rules concerning
taxation are formulated by the State Council, e.g.,
the Detailed Rules for the Implementation of the Tax
Collection and Administration Law of the People' s Republic
of China, the Detailed Regulations for the Implementation
of the Individual Income Tax Law of the People's Republic
of China, the Provisional Regulations of the People'
s Republic of China on Value Added Tax.
(c) The departmental rules concerning taxation are formulated
by the Ministry of Finance, the State Administration
of Taxation, the Tariff and Classification Committee
of the State Council, and the General Administration
of Customs, e.g., the Detailed Rules for the Implementation
of the Provisional Regulations of the People's Republic
of China on Value Added Tax, the Provisional Measures
for Voluntary Reporting of the Individual Income Tax.
The formulation of tax laws shall follow four steps:
drafting, examination, voting and promulgation. The
four steps for the formulation of tax administrative
regulations and rules are: planning, drafting, verification
and promulgation. The four steps mentioned above shall
take place in accordance with laws, regulations and
rules.
Besides, the laws of China stipulates that within the
framework of the national tax laws and regulations,
some local tax regulations and rules may be formulated
by the People's Congress at provincial level and its
Standing Committee, the People' s Congress of minority
nationality autonomous prefectures and the People's
Government at provincial level. The following table
summarises up the current tax laws, regulations and
rules and relevant legislation in China.
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