Credit-A Taxpayers Enjoy Access to Joint Incentives

Date: 2016/10/13 13:51:38 Views：

Twenty-nine departments including the National Development and Reform Commission (NDRC), State Administration of Taxation (SAT), People's Bank of China (PBC) and Civilization Office of the CPC recently signed the MOU on Joint Incentives for Credit-A Taxpayers (MOU), setting forth 41 incentives for credit-A taxpayers' integrity in 18 areas such as project management, taxpayer service, financing and credit, and imports and exports.

The MOU is the first joint incentive measure introduced by multiple departments for creditworthy taxpayers based on joint punishment on seriously discredited taxpayers, and is fully aligned with the overall requirements raised at the Third Plenum of the 18th CPC Central Committee on social credit system construction, namely, "rewarding integrity and punishing the discredited". It is also the first key measure to implement the Guidelines on Building and Refining the System of Joint Incentives for Integrity and Joint Punishment of the Discredited to Accelerate Building Social Integrity, newly published by the State Council, and will play a guiding and driving role in strengthening and innovating social management, building a new credit-centric market regulation system, enhancing taxpayers' tax compliance, boosting market players to comply with laws and uphold integrity in operations, and building a social environment stressing integrity.

According to the MOU, a credit-A taxpayer will have access to the following preferential treatment and convenience:

　　- Project approval and management: green channel for administrative approval; import and export quota distribution incentives for grain and cotton; given prior consideration in direct power trading and preferential right of power generation and right of first refusal to buy electricity; pilot for one-time verification and phased issuance of annual debt quota in the filing management of overseas lending by companies; simplified procedures such as simplified tax payment certification in tendering for government investment projects.

　　- Taxpayer services and management: general taxpayers can apply for VAT invoices for use of 3 months and immediate processing when the volume of invoices needs adjusting; apply for general invoices based on demand; and enjoy eligibility for being recognized as class-A export companies with access to export tax refunds (exemption); and general VAT payers don't need to go through VAT invoice certification.

　　- Import and export convenience: certified Customs credit-A taxpayers are entitled to lower import and export inspection rates, simplified reviews of import and export certificates, preferred Customs clearance procedures, placement of a coordinator by Customs, and Customs clearance convenience by Customs in countries or regions subject to AEO mutual recognition. Credit-A taxpayers with general credit level with Customs enjoy preference in credit fostering or relevant training.

　　- Transportation convenience: prior processing in vehicle Customs clearance and prior verification and issuance of international auto transport driving license.

　　- Entry-exit inspection and quarantine: lower inspection rate at inspection and quarantine ports; preferred release of goods upon guarantee without CCC certification and subsequent cancelation of verification; preferred treatment in applying for beyond-list 3C and 3C certificates.

　　- Financing convenience: key reference to bank credit and financing; being included in the financial credit information basic database as good credit records

　　- Securities and insurance regulation: corporate credit information as references with regard to the establishment and alteration involving securities approval, fund firms, securities and insurance companies and their doing relevant business; offering convenience with respect to the establishment of insurance brokers.

　　- Assessment of model city: including credit-A taxpayers in the assessment criteria of national model cities as a reference to a national model city; prior consideration in the competition for May Day medal and a national advanced NGO.

A credit-A taxpayer also has access to preferred arrangements for fiscal funds projects, convenience and preferential treatment in applying for value-added telecom services, reservation, prior handling and simplified procedures with regard to social insurance, priority to land supply in government tender, preference in environmental protection licenses such as approval for the evaluation documents on environmental impact, prior treatment with respect to business administrative approval to speed up license processing, public announcement in the corporate credit information announcement system, green channel for food and drug production and operation approval, and preferred pilot for the introduction of preferential policies and convenience service measures. A credit-A taxpayer with strong foreign exchange compliance can also be selected as one of the first pilots for the introduction of trade and investment facilitation reform measures.
     

The NDRC and PBC will continue to work with members of the inter-departmental joint conference for building the social credit system to launch more joint incentives for creditworthy market players, and build a long-term mechanism of joint incentives for creditworthy taxpayers and joint punishment for the discredited to push forward the construction of the social credit system in an all-round way

Source: General Office of the State Administration of Taxation