SAT Details Repair of Taxpayer Credit
China’s State Taxation Administration recently released the Announcement [2021] No.31 on “Matters Relating to the Evaluation and Repair of Taxpayer Credit”, implemented on 1 January 2022.
According to the announcement, there are five circumstances under which a taxpayer may apply to the tax authorities in charge for the “restoration/repairing” of its taxpayer credit, namely after it has corrected dishonest behaviour, performed its legal tax liabilities, is waived from the release of its major tax violating information, and has recorded no dishonest tax payment behaviour for six or 12 months.
After completing the repair, the taxpayer can apply the corresponding tax policies and management services based on the repaired tax credit.