Audit and collection: the tax authorities calculate and pay taxes according to the operating conditions reflected in the accounts provided by taxpayers and the applicable tax rates. This method is generally applicable to tax paying units with relatively sound financial accounting system and capable of earnestly fulfilling their tax paying obligations.
Verification and collection: The tax authorities verify the approved output and sales of taxable products produced by taxpayers according to the employees, production equipment and raw materials of taxpayers, and collect taxes accordingly. This method is generally suitable for taxpayers whose books are not sound enough, but who can control raw materials or sales.
Regular quota collection: the tax authorities determine the turnover and income one by one through typical investigations, and collect taxes accordingly. This method is generally applicable to small tax paying units without complete evaluation basis. Legal basis: Article 29 of the Law on the Administration of Tax Collection. Except for tax authorities, tax personnel and units and personnel entrusted by tax authorities in accordance with laws and administrative regulations, no unit or individual may conduct tax collection activities.
Legal basis: Article 25 of the Law of People's Republic of China (PRC) on Tax Collection and Administration, taxpayers must truthfully file tax returns, submit tax returns, financial and accounting statements and other tax payment materials required by tax authorities according to actual needs in accordance with the provisions of laws and administrative regulations or the time limit and content of filing determined by tax authorities in accordance with the provisions of laws and administrative regulations.
Withholding agents must truthfully submit the tax withholding and collection report form and other relevant materials required by the tax authorities according to the actual needs in accordance with the time limit and contents of the declaration stipulated by laws and administrative regulations or determined by the tax authorities.