Notice regarding ”Administrative Measures for Taxpayers” Credit Rating (Trial) (“Notice  No. 40”) (关于发布《纳税信用管理办法（试行）》的公告), issued by the SAT
The SAT has established a credit system to assess taxpayers’ tax performance. Its key features are:
- Covered taxpayers: Enterprises that have completed tax registration and engage in manufacturing or other business transactions, and file tax by assessment.
- Rating: Taxpayers are rated as A, B, C or D.
- Evaluation: Tax bureaus are adopting a dynamic adjustment mechanism on the evaluation of credit rating. Annual credit rating results will be completed by April 2015, and allow taxpayers to check their own rating.
- Application of credit rating results:
Taxpayers with credit rating A will benefit from special treatments/incentives:
- The tax authorities will announce a list of taxpayers with credit rating A to the public annually.
- Taxpayers with credit rating A can collect three months’ special VAT invoices from the authority in one time. If taxpayers need to adjust their special VAT invoice amount, the tax authorities will immediately deal with their applications if the application documents are complete.
- They can collect normal VAT invoices as required.
Taxpayers with credit rating B will be subject to the normal administrative measures and subject to the tutorship by the authority from time to time. Taxpayers with credit rate C will be subject to strict administrative and the measures applied to taxpayers with credit rating D could be applied to them selectively.
Taxpayers with credit rating D will be subject to strict administrative measures:
- The names of taxpayers with credit rating D and any direct persons in charge will be announced publicly. Other taxpayers registered or operating under the same persons in charge will also be classified as credit rating D.
- Taxpayers with credit rating D that collect special VAT invoices will be subject to the same policies as general taxpayers’ during a supervision period. Normal VAT invoices will be strictly controlled. New normal VAT invoices can only be collected once the used ones have been verified.
- Export VAT refund applications of taxpayers with credit rating D will be closely inspected.
Date of issue: July 4, 2014. Date of effectiveness: October 1, 2014.