China's "Tax Administration Law" defines taxpayers' rights such as the right to postpone tax declaration, the right to postpone tax payment, the right to apply for tax reduction or exemption, the right to apply for tax refund, the right to ask for confidentiality, and various obligations such as tax declaration and tax inspection according to law. Based on these basic rights and obligations, the Measures specially endow taxpayers with the following rights and obligations:
Taxpayer's rights
1. Have the right to know and consult the tax authorities about the specific provisions of the Measures and information related to specific tax payment procedures.
2. The right to reach an advance pricing arrangement with the tax authorities on the pricing principles and calculation methods of future related party transactions; The right of an enterprise to sign a cost sharing agreement with its related parties; The right to actively submit the materials of the same period to the tax authorities at the stage of desk review; The right to take the initiative to self-adjust its related party transactions.
3. The right to apply for an extension. Including the right to delay the provision of relevant information, delay the declaration and delay the payment of taxes. Taxpayers who fail to declare related party transactions on schedule may postpone the declaration according to the relevant provisions of the Tax Administration Law and its detailed rules for implementation. In addition, taxpayers should also pay additional taxes and interest for special tax adjustment, and if they have special difficulties in paying taxes on time, they can also postpone paying taxes according to regulations.
4. Require the tax authorities and their staff to keep and use the materials submitted by them in accordance with relevant confidentiality provisions.
5. Right to avoid double taxation. In case of transfer pricing adjustment of one party to related party transactions, the taxpayer may request the other party to make corresponding adjustment to the tax authorities, or negotiate to eliminate double taxation.
6. Have the right to state, object, defend, consult, apply for administrative reconsideration and bring an administrative lawsuit against the adjustment decision made by the tax authorities.
7. Eligible taxpayers can enjoy the right to be exempted from preparing materials in the same period according to law. Enjoy the right of tax reduction and exemption for paying enterprise income tax abroad.
(2) Taxpayer's obligations
1. Obligation to conduct business with affiliated enterprises according to law.
Business dealings between affiliated enterprises shall be charged or paid according to business dealings between independent enterprises. It is the taxpayer's legal obligation to account for business dealings with affiliated enterprises according to law. If an affiliated enterprise fails to collect or pay the price and expenses according to the business dealings between independent enterprises, thus reducing its taxable income, the tax authorities have the right to make reasonable adjustments.
2. The obligation to handle relevant declarations according to law.
Resident enterprises that implement audit collection and non-resident enterprises that set up institutions and places within the territory of China and truthfully declare and pay taxes shall submit nine relevant returns when submitting the annual enterprise income tax return to the tax authorities.
3. Obligation to accept transfer pricing investigation.
The enterprise under investigation must truthfully report its related party transactions and provide relevant information, and shall not refuse or conceal it.
4. Obligation to provide information.
(1) Obligation to provide information in time.
Taxpayers should not only provide tax-related information to tax authorities through tax registration and tax declaration, but also provide other information in time. Taxpayers who have closed down, expanded their business scale, suffered from various disasters and other special circumstances should promptly explain to the tax authorities so that they can properly handle them. Enterprises are obliged to provide notarial certificates for the relevant information of overseas related parties.
(2) the obligation to prepare, save and provide information of the same period.
An enterprise shall, in accordance with the requirements of the tax year and the tax authorities, compile, save and provide information on its related transactions in the same period. Submit the materials of the same period to the tax authorities at the stage of desk review; During the tracking management, the information of the same period of the tracking year should be provided on time, and the abnormal situation should be adjusted by itself. When applying for advance pricing, documents shall be provided as required and all documents shall be properly kept. If a cost-sharing agreement is reached, the information of the same period of the cost-sharing agreement shall be provided to the tax authorities before June 20 of the following year.
(3) the obligation to jointly provide evidence.
Related parties of enterprises and comparable enterprises shall provide relevant information within the time limit agreed with the tax authorities, generally not exceeding 60 days.
Taxpayers must pay taxes within the time limit stipulated in the tax law. After receiving the Notice on Adjustment of Special Tax Investigation, the enterprise shall pay taxes and interest within the prescribed time limit.
6. Taxpayers shall report to the tax authorities in case of merger or division. After the merger or division, the taxpayer shall continue to perform the obligations related to declaration, data preparation and preservation in the same period or bear joint liability.
Legal basis:
"People's Republic of China (PRC) tax collection and management law" article 1.
This Law is formulated in order to strengthen the administration of tax collection, standardize tax collection, safeguard national tax revenue, protect the legitimate rights and interests of taxpayers and promote economic and social development.