国发19984号
(March 12, 1998)
颁布日期：19980312 　实施日期：19980312 　颁布单位：国务院

　　The reform of the tax systems in 1994, which, as a result, further strengthened the legal systems of taxation¹, laid down stringent² provisions on tax reduction and exemption⁴ and defined taxation powers, has proven to be positive for the state to exercise macro-control, implement⁵ industrial policies, bring about fair competition between enterprises, promote restructuring in enterprises and increase financial revenue. However, there are still so many problems in performing tax policies by a number of localities and departments. For instance, some make adaptive provisions of state tax policies without authorization⁶ and grant tax reduction or exemption beyond their powers; some wantonly allow taxpayers⁸ to defer⁹ or to be behind with tax payment; some contract for tax collection; and some impose excessive taxes. These problems are seriously disturbing the normal fiscal¹⁰ order and impairing¹¹ the consolidation¹² and perfection of the fiscal system. In order to safeguard the solemnity and dignity of laws and regulations of taxation (hereinafter referred to as "tax laws"), reinforce tax administration by law and enforce taxation powers, this Circular is hereby issued as follows:

　　1. State tax laws and provisions regarding taxation powers should be enforced strictly¹³. The legislative¹⁴ powers in respect of central taxes, common taxes and local taxes shall be centralized by the central authorities. Each locality and each department should collect taxes by law, handle financial affairs by law, and should not institute or interpreter tax policies beyond their powers, neither they may exceed their terms of reference to grant tax reduction and exemption, nor allow deferment¹⁵ of tax payment, nor exempt³ somebody from taxes that have been overdue¹⁶. Except for animal slaughtering¹⁷ taxes, banquet taxes and animal husbandry taxes of which administrative¹⁸ powers have been expressly transferred to the local authorities, the central authorities shall centralize the administrative powers of all other kinds of taxes. Local governments shall not make changes, adjustments or adaptive provisions in respect of tax laws and tax policies beyond their terms of reference prescribed expressly by tax laws. With regard to problems in tax policies, all localities may put forward their views for adjustment and improvement and report them to the State Council or the departments of the State Council in charge of financial affairs. However, no locality may act on their own authorities pending¹⁹ the decision of the State Council.

　　2. Minority autonomous²⁰ areas shall have their tax policies in conformity²¹ with those of the whole country. Governments of minority autonomous areas shall impose strict restrictions²² upon the scopes and amounts of tax reduction or exemption when instituting their preferential tax policies as authorized²³ by state laws or regulations, and shall not grant their approval of tax reduction or exemption beyond their terms of reference. Governments of the autonomous regions directly under the Central Government shall submit preferential tax policies instituted by them according to their terms of reference to the departments of the State Council in charge of financial affairs for the record. Those violating the provisions of state tax laws shall be put right by the department in charge of financial affairs with authorization of the State Council.

　　3. Tax administration by law should be persisted in and importance be attached to the administration of tax reduction and exemption. Tax reduction and exemption must be executed according to the provisions of tax laws. Any prescriptions²⁴ regarding tax reduction or exemption beyond provisions of tax laws or taxation powers shall be annulled²⁵ without delay. Even the reduction or exemption of local taxes shall be handled according to the terms of reference granted by the central authorities. No body may institute his own rules and act on his own authority. Once tax reduction or exemption without approval is found, the taxpayer⁷ involved shall pay off taxes in full and the person responsible and the person in charge shall be investigated for their responsibilities.

　　4. Further steps shall be taken to strengthen the administration of tax collection. Tax authorities at various levels must exactly perform the functions as prescribed in state tax laws and shall collect taxes according to law in order to get taxes in full. Contracting for tax collection in various forms shall be prohibited. Failure to pay taxes in full or tax exemption in the form of deferring²⁶ tax payment shall not be allowed. Exemptions²⁷ granted to taxpayers from their arrears²⁸ of taxes on some pretexts²⁹ shall be strictly prohibited. Arrears of taxes that have been exempted³⁰ shall be returned to the treasure within a fixed³¹ time limit. Tax authorities at various levels must strictly comply with the procedures and time limits provided for by tax laws when examining and approving applications of taxpayers for deferment of tax payment, and shall not wantonly extend the prescribed time limits for deferment of tax payment. Imposition of excessive taxes shall be resolutely³² banned and apportioning³³ taxes equally according to the number of people or land areas shall be prohibited.

　　5. People's governments and tax authorities at all levels shall conscientiously³⁴ implement the prescriptions of the State Council regarding the system of tax distribution and hand over revenue in strict accordance with the levels of treasures. If anyone hands over central revenue as local revenue to local treasure by mixing up intentionally³⁵ the levels of treasures, the offender³⁶ and the leader in charge shall, in addition to returning all the revenue that has been seized, be investigated for their responsibility.

　　6. Legal systems for taxation should be strengthened and the dignity of state tax laws be safeguarded. Financial and taxation departments shall establish and perfect their internal supervision³⁷ and discipline systems and take vigorous action to ensure the supervision and inspection³⁸ of tax policies. Auditing³⁹ departments shall strengthen the auditing over the implementation⁴⁰ of tax policies and perfect necessary working systems. Problems found in the inspection and auditing shall be resolved in time in order to ensure the proper implementation of tax policies and stop up loopholes that cause losses of revenue from taxes. Leading officials of people's governments at all levels and all departments shall firmly keep in mind the sense of legality of taxation, proceed from the consideration of maintaining the interest of the whole country and the normal fiscal order, further strengthen the leadership over the fiscal work, lend support to financial departments in organizing financial revenue and intensify⁴¹ the administration of tax collection in order to create a favourable⁴² environment for establishing the socialist⁴³ market economic system.

　　As from the date of the issuance of this Circular, each locality and each department should make an overall inspection and rectification⁴⁴ of the implementation of tax policies within their own jurisdiction⁴⁵. Violations⁴⁶ of state tax laws and tax policies shall be corrected without delay. Each locality and each department shall submit a report on the inspection and rectification to the State Council before the end of September and, at the same time, transfer a copy each to the Ministry⁴⁷ of Finance and the State Administration of Taxation.