Tax Credit Rating System in China

The State Taxation Administration (SAT) has already established a system to evaluate a taxpayer’s tax credit rating. There are 5 levels (A-B-M-C-D ranked from highest to lowest) assessed based on a certain company's tax compliance.

The rating result gradually plays an important role in companies’ daily business. For example, taxpayers with C-level tax credit rating can’t enjoy VAT tax refund on product exported. Taxpayers with D-level can’t get fapiao then can’t issue fapiao to their clients. Furthermore, you may find some of your company’s suppliers and clients also pay attention to the tax credit rating when they assess whether they can build a business relationship with the company.

In order to avoid the disadvantage due to a lower level, companies need to comply with tax regulations self-consciously. Below are easy to do but sometimes companies haven’t pay enough attention to these works and cause companies lower score of the rating evaluation. 

1.    Filing tax return to tax office timely.

2.    Filing financial reports to tax office timely.

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