Recently, the 25th session of the 14th National People's Congress Standing Committee reviewed the “Tax Collection Administration Law of the People's Republic of China” and released the full text of the draft to the public for comments. A major change in the “Draft Tax Collection and Administration Law” is reflected in late tax payments. According to the current tax collection and administration law, if the taxpayer fails to pay the tax in accordance with the prescribed period, and the withholding agent fails to pay the tax in accordance with the prescribed period, the tax authorities will add a late payment fee of 5/10,000 of the late tax amount on a daily basis from the date of late payment, in addition to ordering the late payment of the tax within the specified period. However, in addition to this statement, the “Draft Tax Collection and Administration Law” mentioned above added “Tax arrears must not exceed twice the amount of tax payments.” This means there is an upper limit on late tax payments, and “no cap” is expected to become history.

Recently, the 25th session of the 14th National People's Congress Standing Committee reviewed the “Tax Collection Administration Law of the People's Republic of China” and released the full text of the draft to the public for comments. A major change in the “Draft Tax Collection and Administration Law” is reflected in late tax payments. According to the current tax collection and administration law, if the taxpayer fails to pay the tax in accordance with the prescribed period, and the withholding agent fails to pay the tax in accordance with the prescribed period, the tax authorities will add a late payment fee of 5/10,000 of the late tax amount on a daily basis from the date of the late payment, in addition to ordering the late payment of the tax within the specified period. However, in addition to this statement, the “Draft Tax Collection and Administration Law” mentioned above added “Tax arrears must not exceed twice the amount of tax payments.” This means there is an upper limit on late tax payments, and “no cap” is expected to become history.