Streamlined Processes for Different Relocation Scenarios

The circular outlines several key measures aimed at expediting the relocation process for taxpayers:

• Outstanding Matters: If a taxpayer has unresolved tax issues, they will receive immediate notification to confirm whether they wish to continue addressing these matters. Depending on the taxpayer’s choice, tax authorities will either complete the process within a specified timeframe or terminate the pending matters.
• Invoice Usage Procedures: For taxpayers using fully digitized electronic invoices, the SAT has simplified the process by automatically transferring invoice quotas to the new location. For those using tax control equipment, relocation within the same province can be handled online, eliminating the need for physical surrender or cancellation of equipment. For cross-province relocations, taxpayers can cancel their equipment remotely and obtain new equipment at the relocation site or continue using fully digitized electronic invoices.
• Risk Management: Tax authorities will categorize, and handle tax-related risks based on their severity. Low-risk cases will be processed swiftly, with the necessary tasks transferred to the tax authorities in the new location. Medium and high-risk cases will undergo a thorough risk assessment before relocation procedures are completed.
• Tax Refund Process: In cases of overpayment, taxpayers will receive automatic reminders to process tax refunds before migration. Should the taxpayer opt to delay the refund, they will be guided through the process post-relocation.

Enhanced Post-Relocation Services

To ensure a smooth transition, tax authorities in the new location are instructed to provide comprehensive “one-stop” services. These services will safeguard the continuity of taxpayers’ rights and qualifications, including tax credit levels, invoice quotas, prepaid taxes, income tax loss compensation, VAT qualifications, and not deducted VAT input tax. Additionally, authorities will assist taxpayers in completing any outstanding tax-related matters from before the relocation.

Proactive Guidance and Pre-Event Reminders

In an effort to support taxpayers during cross-regional relocations, the SAT has mandated that tax authorities enhance their collaboration with market supervision departments. This will enable the proactive sharing of registration information, allowing tax authorities to send timely reminders to taxpayers regarding any unresolved tax matters. These reminders will be delivered through the electronic tax bureau, ensuring that taxpayers are well-informed and can address pending tax issues promptly.

Commitment to National Market Unity

Tax authorities are required to resist local protectionism and ensure that no undue barriers are placed on taxpayer relocations. Any documents or practices that hinder cross-regional migration must be reported and eliminated. Violations by tax authorities or their personnel will be subject to strict disciplinary actions.

Conclusion

This new directive from the State Administration of Taxation represents a significant step towards a more integrated and efficient national market. By simplifying the relocation process for taxpayers and ensuring consistent service across regions, China aims to fostering a more dynamic and competitive business environment. As these measures come into effect, taxpayers can expect a smoother, more transparent experience when relocating across regions, contributing to the broader goal of national market unification.