Do you know what is Tax Credit Rating and how does it work? Since 2014, according to the regulation issued by the Tax Bureau, Tax Credit Rating on tax payer is calculated in accordance with the payer’s tax status each year (from Jan. 1st to Dec 31st ).
Rating Criterion
There are four rating levels, concerning:
A (≥90 credit scores)
B (70≤x<90 credit scores)
C (40≤x<70 credit scores)
D (≤40 credit scores)
That means, level A refers to the best rating record while level D refers to the worst one. And the higher tax credit rating makes the better development for an enterprise.
Measures for the Credit Management implemented by State Tax Bureau in July, 2017, gives notice that the newly established enterprises and enterprises with 0 income declaration are not included into the Tax Credit Rating system.
And since April 1 this year, a new credit rating level - M level will be added into the rating criterion.
Conditions for level M
of Tax Credit Rating
No reverse record according to the article 12 of Measures for the Credit Management.
Newly established enterprises.
Enterprises with 0 income declaration and own more than 70 credit scores (level B or above) yearly.
Benefits for level M tax payers
No need to certify their special invoices of VAT.
Proper policy assistance by the Tax Bureau.
As a tax payer, you should fulfill your obligations to pay taxes according to the regulation for the sake of getting a better tax credit rating. Otherwise, for those enterprises with lower credit rating level, they will subject to stricter supervision by the Tax Bureau. Worse still, they are likely to suffer from visa refusal!
Additionally, you can inquire your company’s Tax Credit Rating on the official website of Guangdong Electronic Taxation Bureau.
http://www.etax-gd.gov.cn/
Policy reference:
Notice of Measures for the Credit Management (Trial) by State Tax Bureau
《国家税务总局关于发布<纳税信用管理办法（试行）>的公告》
Notice of Matters on Tax Credit Evaluation by State Tax Bureau
《国家税务总局关于纳税信用评价有关事项的公告》
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