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The State Administration of Taxation issued a list of 10 items of "No Penalty for the First Violation", which will be implemented in April
China-Singapore Jingwei Client, April 1st. According to the official website of the State Administration of Taxation, the State Administration of Taxation recently issued the "Announcement of the State Administration of Taxation on Issuing the List of Issues Concerning the "First Violation and Impunity" of Tax Administrative Penalties"" (hereinafter referred to as the "Announcement") .
The "Announcement" stated that if the items listed in the list occur for the first time and the harmful consequences are minor, and the tax authorities take the initiative to make corrections before they are discovered, or make corrections within the time limit ordered by the tax authorities to make corrections, no administrative penalties will be imposed.
Tax authorities should strengthen tax law publicity and guidance to the parties.
Effective from April 1, 2021.
According to the State Administration of Taxation, the newly revised "Administrative Punishment Law of the People's Republic of China" Article 33 Paragraph 1 stipulates that if the first violation of the law and the harmful consequences are minor and the consequences are corrected in time, administrative penalties may not be imposed.
Article 11 of the "Rules for the Exercise of Discretionary Powers of Tax Administrative Penalties" (Announcement No. 78 of the State Administration of Taxation 2016) stipulates that administrative penalties may be imposed under laws, regulations, and rules, and the party violated it for the first time and the circumstances were minor, and it was discovered in the tax authority No administrative penalty shall be imposed on those who voluntarily make corrections before or within the time limit ordered by the tax authority to make corrections within a time limit.
If no administrative punishment is imposed on the party's illegal acts in accordance with the law, the administrative agency shall educate the party.
According to the State Administration of Taxation, the State Administration of Taxation has issued the "Announcement" in accordance with the above-mentioned regulations and combined with the practice of implementing tax administrative penalties by tax authorities at various levels and levels of "first violation without penalty".
On the basis of strict law enforcement and within the scope of laws and administrative regulations, tax authorities shall give taxpayers and withholding agents whose items listed in the list occur for the first time and who have minor consequences and have the opportunity to correct tax violations in a timely manner.
If the above-mentioned taxpayers and withholding agents take the initiative to make corrections before the tax authorities discover them or make corrections within the time limit ordered by the tax authorities to make corrections, no administrative penalty shall be imposed.
If taxpayers and withholding agents commit tax violations listed in the list again, the tax authorities will strictly follow laws and administrative regulations and impose corresponding tax administrative penalties.
The "Announcement" clarifies that the applicable tax administrative penalty "first violation without penalty" must meet the following three conditions at the same time: one is that the taxpayer and withholding agent have the items listed in the list for the first time; the second is that the harmful consequences are minor; the third is that the tax The authorities take the initiative to make corrections before they are discovered, or make corrections within the time limit ordered by the tax authorities to make corrections.
Source: Official website of the State Administration of Taxation
The "Announcement" shows that the list enumerates 10 items that are subject to "first violation without penalty", taking into account multiple types of minor tax violations such as data submission, tax declaration, and ticket management. The tax authorities shall apply the “no penalty for the first violation” to taxpayers and withholding agents who meet the conditions specified in the announcement when the items listed in the list occur. For taxpayers and withholding agents who are subject to "first violation without penalty", tax authorities shall strengthen tax law publicity and guidance in appropriate ways. (Zhongxin Jingwei APP)