State Administration of Taxation
Encyclopedia
The State Administration of Taxation (SAT, Chinese
: 国家税务总局) is a ministerial-level department within the government of the People's Republic of China
. It is under the direction of the State Council
, and is responsible for the collection of tax
es and enforces the state revenue
law
s.
One Chief Economist
and one Chief Accountant are also members of the top leadership of the SAT.
Notes:
1. Slaughter Tax, Banquet Tax and Animal Husbandry Tax are now decentralised to the local governments for administration. Whether levying
or not shall be at the discretion of the governments at provincial level for decision by taking into account the local conditions.
2. Inheritance Tax and Security Exchange Tax have not yet been legislated to date.
Chinese character
Chinese characters are logograms used in the writing of Chinese and Japanese , less frequently Korean , formerly Vietnamese , or other languages...
: 国家税务总局) is a ministerial-level department within the government of the People's Republic of China
Government of the People's Republic of China
All power within the government of the People's Republic of China is divided among three bodies: the People's Republic of China, State Council, and the People's Liberation Army . This article is concerned with the formal structure of the state, its departments and their responsibilities...
. It is under the direction of the State Council
State Council of the People's Republic of China
The State Council of the People's Republic of China , which is largely synonymous with the Central People's Government after 1954, is the chief administrative authority of the People's Republic of China. It is chaired by the Premier and includes the heads of each governmental department and agency...
, and is responsible for the collection of tax
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
es and enforces the state revenue
Revenue
In business, revenue is income that a company receives from its normal business activities, usually from the sale of goods and services to customers. In many countries, such as the United Kingdom, revenue is referred to as turnover....
law
Law
Law is a system of rules and guidelines which are enforced through social institutions to govern behavior, wherever possible. It shapes politics, economics and society in numerous ways and serves as a social mediator of relations between people. Contract law regulates everything from buying a bus...
s.
Mandates
- Drafting tax lawTax lawTax law is the codified system of laws that describes government levies on economic transactions, commonly called taxes.-Major issues:Primary taxation issues facing the governments world over include;* taxes on income and wealth...
s and regulations; formulating detailed implementation rules for tax laws and regulations; putting forward suggestions on tax policies, and together with the Ministry of FinanceMinistry of Finance of the People's Republic of ChinaThe Ministry of Finance of the People's Republic of China is the national executive agency of the Central People's Government which administers macroeconomic policies and the national annual budget. It also handles fiscal policy, economic regulations and government expenditure for the state.The...
, reviewing the suggestions and submitting them to the State Council; formulating implementation rules for tax policies.
- Measuring the overall tax burden and putting forward suggestions on how to use tax for regulation purpose; formulating tax rules and procedures and supervising their implementation; providing guidance for local tax collection and administration.
- Organizing collection and administration for central taxes, shared taxes and contributions to state-designated funds; working out revenue plans; providing interpretation for issues concerning tax collection and administration and general tax policyTax policyTax policy is the government's approach to taxation, both from the practical and normative side of the question.-Philosophy:Policymakers debate the nature of the tax structure they plan to implement and how they might affect individuals and businesses .The reason for such foitution effect]],...
issues arising from the implementation of tax laws and regulations.
- Conducting international exchange and cooperation on taxation; negotiating and applying agreements on avoidance of double taxation and prevention of fiscal evasionTax evasionTax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
with respect to taxes on incomeIncomeIncome is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, "income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings...
and capitalCapital (economics)In economics, capital, capital goods, or real capital refers to already-produced durable goods used in production of goods or services. The capital goods are not significantly consumed, though they may depreciate in the production process...
.
- Regulating the collection and refund of VATVatVat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
and Excise Tax on importImportThe term import is derived from the conceptual meaning as to bring in the goods and services into the port of a country. The buyer of such goods and services is referred to an "importer" who is based in the country of import whereas the overseas based seller is referred to as an "exporter". Thus...
s and exportExportThe term export is derived from the conceptual meaning as to ship the goods and services out of the port of a country. The seller of such goods and services is referred to as an "exporter" who is based in the country of export whereas the overseas based buyer is referred to as an "importer"...
s.
- Being responsible for the administration of human resourcesHuman resourcesHuman resources is a term used to describe the individuals who make up the workforce of an organization, although it is also applied in labor economics to, for example, business sectors or even whole nations...
, salary, size and expenditure of SAT local offices; appointing and supervising the work of directors and deputy directors at the provincial level of SAT offices; advising on the appointment and removal of directors of local tax service at the provincialProvince (China)A province, in the context of Chinese government, is a translation of sheng formally provincial level divisions, which is an administrative division. Provinces, municipalities, autonomous regions, and the special administrative regions, make up the four types of province of administrative division...
level.
- Facilitating education and training for tax staff at all levels to build up their professional skills and ethical standards.
- Organizing tax theoretical research and activities to promote tax awareness among the public; serving and regulating certified tax agents and tax agencies.
- Other mandates entrusted by the State Council.
Organization
The Commissioner and four Deputy Commissioners of SAT are appointed by the State Council.One Chief Economist
Chief economist
The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis...
and one Chief Accountant are also members of the top leadership of the SAT.
Departments
There are 14 functional departments within the Headquarters of SAT, each of which consists of several divisions (offices) as follows:| Departments | Functions & Divisions |
|---|---|
| General Office | consisting of Division of Secretaries, Secretariat Division, Supervisory Division, Comprehensive Research Division, News Division and Financial Division |
| Policy and Legislation Department | consisting of Division of Comprehensive Affairs, Tax Reform Division, Legislative Division and Appeal Division |
| Turnover Tax Department | ( in charge of the administration of VAT, Consumption Tax and Business Tax): consisting of Comprehensive Division, VAT Division, Consumption Tax Division and Business Tax Division |
| Income tax Administration Department | (in charge of administration of Enterprise Income Tax and Individual Income Tax): consisting of Comprehensive Division, Central Enterprise Income Tax Division, Local Enterprise Income Tax Division and Individual Income Tax Division |
| Local Tax Department | (in charge of administration of Resource Tax, City and Township Land Use Tax, City Maintenance and Construction Tax, Fixed Assets Investment Orientation Regulation Tax, Land Appreciation Tax, House Property Tax, Vehicle and Vessel Usage Tax, Stamp Tax, Slaughter Tax and Banquet Tax): consisting of Comprehensive Division, Local Tax Division I, Local Tax Division II and Local Tax Division III; |
| Agriculture Tax Bureau | (in charge of administration of Agriculture Tax, Animal Husbandry Tax, Deed Tax and Farmland Occupation Tax): consisting of Comprehensive Division, Agriculture Tax Division I and Agriculture Tax II |
| International Taxation Department | (Offshore Oil Tax Bureau): consisting of Comprehensive Tax Policy Division, Tax Administration Division, Anti-Tax Avoidance Division, Offshore Oil Tax Division, International Tax Treaty Division, Foreign Affairs Division and Foreign Cooperative Division; |
| Import and Export Tax Department | ( responsible for VAT and Consumption Tax on importation and exportation ): consisting of Comprehensive Division, Import Tax Division and Export Tax Division; |
| Administration and Collection Department | consisting of Comprehensive Division, Tax Propaganda Division, Invoice Management Division and Open Market Tax Division; |
| Tax Investigation Department | consisting of Comprehensive Division, Procedure Division, Investigation Division I and Investigation Division II |
| Financial Management Department | consisting of Funding Division, Infrastructure Division and Equipment Division; |
| Planning and Statistical Department | consisting of Comprehensive Division, Planning Division, Statistical Division and Macro-Analysis Division; |
| Personnel Department | consisting of Comprehensive Division Personnel Division for Headquarters, Personnel Division for Local Offices, Recruit Division and Grass-root Work Division; and |
| Supervision Bureau | (representative office of Supervision Ministry):consisting of Secretariat Division, Discipline Inspection and Supervision Division and Division for Letters of Complaints. |
Other
Besides, some non-governmental institutions directly under the Headquarters of SAT are Education Center, Logistical Service Center, Information Technology Center, Registered Tax Agent Management Center, Tax Science Research Institute, China Taxation Magazine, China Taxation Newspaper, China Taxation Press, Yangzhou Training Center and Changchun Tax College.Tax classification
| Category of Taxes | Type of Taxes |
|---|---|
| Turnover Taxes | VAT |
| Consumption Tax | |
| Business Tax | |
| Income Taxes | Enterprise Income Tax |
| Income Tax on Enterprises With Foreign Investment and Foreign Enterprise | |
| Individual Income Tax | |
| Resource Taxes | Resource Tax |
| Urban and Township Land Use Tax | |
| Special Purpose Taxes | City Maintenance and Construction Tax |
| Farmland Occupation Tax | |
| Fixed Assets Investment Orientation Regulation Tax | |
| Land Appreciation Tax | |
| Property Taxes | House Property Tax |
| City Real Estate Tax | |
| Inheritance Tax | |
| Behavioral Taxes | Vehicle and Vessel Usage Tax |
| Vehicle and Vessel Usage Plate Tax | |
| Stamp Tax | |
| Deed Tax | |
| Security Exchange Tax | |
| Slaughter Tax | |
| Banquet Tax | |
| Agriculture Taxes | Agriculture Tax |
| Animal Husbandry Tax | |
| Customs Duties | Customs Duties |
Notes:
1. Slaughter Tax, Banquet Tax and Animal Husbandry Tax are now decentralised to the local governments for administration. Whether levying
Tax
To tax is to impose a financial charge or other levy upon a taxpayer by a state or the functional equivalent of a state such that failure to pay is punishable by law. Taxes are also imposed by many subnational entities...
or not shall be at the discretion of the governments at provincial level for decision by taking into account the local conditions.
2. Inheritance Tax and Security Exchange Tax have not yet been legislated to date.
List of Directors
| Name | Chinese Name | Duration in Office |
|---|---|---|
| Li Yu'ang | (李予昂): | 1949–1958 |
| Ren Ziliang | (任子良) | 1961–1978 |
| Liu Zhicheng | (刘志城) | 1978–1984 |
| Jin Xin | (金鑫) | 1984–1995 |
| Liu Zhongli Liu Zhongli Liu Zhongli is the former Minister of Finance of the People's Republic of China, and former director of State Administration of Taxation of PRC. He also served as first president of National Council for Social Security Fund of PRC... |
(刘仲藜) | 1994–1998 |
| Jin Renqing Jin Renqing Jin Renqing was a member of the Central Committee of the Communist Party in the People's Republic of China, serving as deputy chief of the Development Research Center of the State Council and most recently Finance Minister.-Biography:... |
(金人庆) | 1998–2003 |
| Xie Xuren Xie Xuren Xie Xuren , is the current Minister of Finance of People's Republic of China, and former Director-General of the State Administration of Taxation. He's also a member of the 17th CPC Central Committee.-Biography:... |
(谢旭人) | 2003–2007 |
| Xiao Jie Xiao Jie Xiao Jie is a politician of the People's Republic of China, and the current director of State Administration of Taxation of PRC.Born in Kaiyuan, Liaoning Province, Xiao joined Communist Party of China in August 1985.... |
(肖捷) | 2007-incumbent |