(Promulgated by Decree No. 362 of the State Council of the People's Republic of China on September 7, 2002, and effective as of October 15, 2002)

Chapter I General Provisions

Article 1 These Rules are hereby formulated in accordance with the provisions of the Law of the People's Republic of China on the Administration of Tax Collection (hereinafter referred to as the Law on the Administration of Tax Collection).

Article 2 The Law on the Administration of Tax Collection and these Rules apply to the collection of various taxes by tax authorities according to law. In case where there is no provision in the Law on the Administration of Tax Collection and these Rules, the provisions of other tax laws, tax administrative rules or regulations shall be implemented.

Article 3Decisions made by any department, unit or individual that contravene the tax laws, tax administrative rules or regulations shall be null and void. Relevant tax authorities shall not implement these decisions and shall report to tax authorities at a higher level.

Taxpayers shall fulfill their obligation of tax payment in accordance with the provisions of tax laws, tax administrative rules or regulations. Contracts, agreements and other documents signed by taxpayers that contravene tax laws, tax administrative rules or regulations shall be null and void.

Article 4The State Administration of Taxation shall be responsible for formulating overall plans, technical standards, technical designs and implementing measures in the construction of national taxation information system. According to the overall plans, technical standards, technical designs and implementing measures formulated by the State Administration of Taxation, tax authorities at various levels shall work effectively in the construction of taxation information system in their respective regions.

The local people's governments at various levels shall give positive support to the construction of the taxation information system and organize the related departments to have the relevant information shared.

Article 5Information to be kept confidential for taxpayers and tax withholding agents, as stipulated in Article 8 of the Law on the Administration of Tax Collection, refers to the commercial secret and individual privacy of taxpayers and tax withholding agents. Any violation of tax law by taxpayers and withholding agents does not fall within the scope of confidentiality.

Article 6The State Administration of Taxation shall formulate the norm of conduct and standard of service for tax officials.

Tax authorities at a higher level shall promptly rectify any violation of tax law by tax authorities at a lower level upon discovery. Tax authorities at a lower level shall promptly correct their violation of tax law according to the decision of tax authorities at a higher level.

Tax authorities at a lower level shall report to tax authorities at a higher level or relevant department upon discovering any violation of tax law by tax authorities at a higher level.

Article 7Tax authorities shall grant awards to offence reporters on the basis of their contributions. Funds needed to pay these awards shall be included in the annual budget of the taxation department and approved separately. The specific measures and standard for the use of award-funds shall be formulated by the State Administration of Taxation jointly with the Ministry of Finance.

Article 8When assessing the amount of tax payable, adjusting the amount of fixed tax payment, conducting tax inspection, imposing tax administrative penalties, or conducting tax administrative reconsideration, tax officials shall recuse themselves if they have any of the following relationships with the taxpayer, or tax withholding agent, or its legal representative, or the direct responsible person:

(1) spouse relationship;

(2) lineal blood relationship;

(3) collateral blood relationship within three generations;

(4) close relative by marriage; or

(5) any other interests relationship that may influence impartial law enforcement.