Small-scale taxpayers who have sound accounting and can provide accurate tax payment information may apply to the competent tax authorities for general taxpayer qualification and are not regarded as small-scale taxpayers.

Unless otherwise stipulated in State Taxation Administration of The People's Republic of China, once a taxpayer is recognized as a general taxpayer, it shall not be converted into a small-scale taxpayer.

Extended data

There are three main ways to collect small-scale taxpayers: audit collection, audit collection and regular quota collection.

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 their employees, production equipment and raw materials, 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.

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