Article 49Any contractor or lessee who is independent in both production or business operation and financial accounting and who regularly pays contracting fees or rental to the contract issuer or the lessor shall pay tax on its receipts and income from production or business operation and accept the tax administration, except as otherwise provided by laws or administrative rules or regulations.

The contract issuer or lessor shall, within 30 days from the date of issuance of contract or leasing, report the information about the contractor or lessee to the competent tax authorities. Otherwise, the contract issuer or the lessor shall assume the joint and several tax liabilities with the contractor or lessee.

Article 50Taxpayers shall report to the competent tax authorities before liquidation in case of dissolution, cancellation or bankruptcy. The competent tax authorities shall participate in the liquidation in case the tax payment is not settled.

Article 51The associated enterprises mentioned in Article 36 of the Law on the Administration of Tax Collection refer to companies, enterprises or other economic entities that have one of the following relationships:

(1) direct or indirect ownership or control of each other in relation to capital, business operation, purchase, sale, etc;

(2) direct or indirect ownership or control of both or all by a third party; or

(3) other associated relationships in terms of interest.

Taxpayers have an obligation to provide the local tax authorities with information on prices, expenditure standard and others concerning business transactions with their associated enterprises. The specific measures shall be formulated by the State Administration of Taxation.

Article 52Business transactions between independent enterprises as mentioned in Article 36 of the Law on the Administration of Tax Collection refer to business transactions between enterprises with no associated relationship at fair market prices and following normal business practice.

Article 53The taxpayer may propose to the competent tax authorities a pricing principle and calculation method for business transactions with its associated enterprises. The competent tax authorities may, after examination and approval, agree upon the items of pricing with the taxpayer in advance and supervise over the implementation.

Article 54Tax authorities may adjust the taxpayer's amount of tax payable in one of the following situations in business transactions between the taxpayer and its associated enterprises:

(1) purchases and sales are not priced according to business transactions between independent enterprises;

(2) the interest paid to or charged by the financing enterprise is over or below the amount acceptable for enterprises with no associated relationships, or the interest rate adopted is higher or lower than the normal rate for the same type of business;

(3) charge for service is not collected or paid as it normally occurs between independent enterprises;

(4) business transactions such as transfer of property or provision of right to use property are not priced or charges are not collected or paid as they should be in business transactions between independent enterprises; or

(5) other circumstances where business transactions are not priced in accordance with the normal practice between independent enterprises.

Article 55In case any taxpayer falls into one of the circumstances listed in Article 54 of these Rules, tax authorities may adjust the taxpayer's taxable receipts or income according to the following methods:

(1) according to the price for the same or similar business transactions between independent enterprises;

(2) according to the level of income and profit obtainable on the basis of the resale price to a non-associated third party;

(3) according to the method of cost plus reasonable expenses and profit; or

(4) according to other appropriate methods.

Article 56When payment or receipt of prices or charges in business transactions between a taxpayer and its associated enterprise is not made as it should be with business transactions between independent enterprises, the tax authorities shall make adjustment, within three years after the first tax year for such transactions, or under special circumstances within ten years after the first tax year for such transactions.

Article 57Taxpayers engaged in production or business operation without completing formalities for tax registration as mentioned in Article 37 of the Law on the Administration of Tax Collection include those conducting production or business operation in another county (city) without reporting to local tax authorities for registration.

Article 58The taxpayer shall pay tax within 15 days from the date when the tax authorities impound its commodities or goods in accordance with Article 37 of the Law on the Administration of Tax Collection.

As for the impounded commodities or goods which are live and fresh, apt-decaying or easy-deactivating, the tax authorities may shorten the impounding time set forth in the preceding paragraph.

Article 59Other property mentioned in Articles 38 and 40 of the Law on the Administration of Tax Collection include immovables and movables such as real estate, cash and marketable securities.

Motor vehicles, gold and silver ornaments, curios calligraphies and paintings, luxurious residential buildings or houses other than the one necessary for living do not fall into the scope of articles and dwelling houses necessary to support the individual and its dependent family members as mentioned in Articles 38, 40 and 42 of the Law on the Administration of Tax Collection.

Tax authorities shall not adopt tax preservative measures and compulsory enforcement measures on other household goods with the unit price below 5,000 yuan.

Article 60Family members supported by a taxpayer as stated in Articles 38, 40 and 42 of the Tax Administration and Collection Law shall refer to the taxpayer's living-together spouse, lineal relatives and other relatives without living sources and supported by the taxpayer.

Article 61The guaranty mentioned in Articles 38 and 88 of the Law on the Administration of Tax Collection includes the suretyship for tax payment provided for a taxpayer by a surety approved by tax authorities, and the guaranty provided with the taxpayer's or a third party's property which has not been provided or entirely provided as guaranty.

The tax payment surety refers to any natural person, legal person or other economic entity within the Chinese territory that is able to provide guaranty for tax payment.

Any unit or individual without guaranty qualifications prescribed by laws or administrative rules or regulations is not allowed to serve as a tax payment guarantor.

Article 62A tax payment guarantor who is willing to provide guaranty for a taxpayer shall fill in a letter of guaranty for tax payment stating clearly the target, scope, duration and liabilities of guaranty and other relevant issues. A letter of guaranty shall be deemed to be valid only after it is signed and stamped by the taxpayer and the tax payment guarantor and approved by tax authorities.

In case a taxpayer or a third party provides a guaranty for tax payment with its property, a detailed list of property shall be filled in, indicating the value of the property and other relevant issues. The detailed list of property provided as guaranty for tax payment shall be valid only after it is signed and stamped by the taxpayer or the third party and confirmed by tax authorities.

Article 63When impounding or sealing up commodities, goods or other property, tax authorities shall have two or more officials present on the site and notify the person subject to enforcement. In case the person subject to enforcement is a natural person, he or an adult member of his family shall be notified to be present; in case the person subject to enforcement is a legal person or other organization, its legal representative or principal responsible officer shall be notified to be present. Any refusal of presence shall not affect the enforcement.

Article 64When impounding or sealing up commodities, goods or other property with an equivalent value to the amount of tax payable, in accordance with the provisions of Article 37, 38 or 40 of the Law on the Administration of Tax Collection, tax authorities shall estimate the value with reference to the market price, ex-factory price or evaluated price of the like commodities.

Tax authorities, when defining the value of the commodities, goods or other property according to the preceding paragraph, shall have the surcharge on tax in arrears and expenses for impounding, sealing up, keeping, auctioning and selling off them included.

Article 65Tax authorities may impound, seal up or auction as a whole the inseparable commodities, goods or other property with a value exceeding the amount of tax payable in case the taxpayer, tax withholding agent or tax payment guarantor has no other property available for compulsory enforcement, and use the proceeds from the auction to offset the tax, surcharge on tax in arrears, penalties and expenses of impounding, sealing up, keeping and auction and so on.

Article 66In impounding or sealing up the movables or immovables with a property right certificate in line with the provisions of Article 37, 38 or 40 of the Law on the Administration of Tax Collection, tax authorities may order the party involved to turn in the certificate for safekeeping and at the same time issue a notice of assistance for enforcement to the relevant department, which shall not handle ownership transfer formalities of the movables or immovables in the course of its being impounded or sealed up.

Article 67Tax authorities may instruct the person subject to enforcement to take care of the sealed-up commodities, goods or other property, and the safekeeping responsibility shall be borne by the person subject to enforcement.

In case the continuous use of the sealed-up property does not cause reduction of its value, tax authorities may allow the person subject to enforcement to continuously use it; the person subject to enforcement shall bear any loss to the property resulting from its fault in the course of safekeeping or use.

Article 68In case the taxpayer settles the tax payment within the deadline set by tax authorities after the tax preservative measures are adopted by tax authorities, tax authorities shall terminate the tax preservative measures within one day after receiving the tax payment or tax payment receipt from the bank.