Each local taxation bureau at district and county level, each sub-bureau and each office and skin of the city bureau,
In order to further clarify the procedures and contents of taxation administrative licensing, standardize the administrative licensing, and protect the legal rights and interests of taxpayers, the city bureau, according to the “Notice of the State Administration of Taxation on Several Problems Concerning Taxation Administrative Licensing” (Guo Shui Fa (2004) No. 73), formulated “Procedure Rules of Beijing Local Taxation Bureau for Taxation Administrative Licensing” (hereinafter referred to as “Procedure Rules”) and “Supervision and Examination System of Beijing Local Taxation Bureau on Administrative License” (hereinafter referred to as the “Supervision System”). We hereby distribute them to you, please implement them combined with the practical situation of the local taxation system in Beijing.
1. Improve the awareness and strengthen the management. The enforcement of the “Administrative License Law” is an important measure in China’s reform of administrative management system, which is highly meaningful to promoting China’s construction of government by law. Taxation system’s enforcing of the “Administrative License Law” is helpful to further improve the service quality and efficiency, standardize tax collection laws enforcement, enhance work style, and set up a clean-fingered and transparent high-efficiency taxation image which provides various services. The tax organs at each level shall attach great importance on this work, strengthen the organization and management step by step, carefully arrange each work, strictly enforce the laws and ensure to carry out each system.
2. Adopt effective measures and actively carry out training and propaganda. Each unit shall, according to the requirements from the state administration and city bureau, actively organize taxation cadres to carry out special trainings on taxation administrative license, highlight the importance of trainings, place stress on the training effect and ensure that each law-enforcement official directly doing taxation administrative license has got the grip of the “procedure rules”. Meanwhile, various propaganda on taxation administrative license shall be extensively carried out in various forms, and the matters concerning taxation administrative license and the specific contents on application shall be issued in time at taxation service sites and on the external websites for taxpayers to fully understand the conditions, procedures and relevant rules of the application for taxation administrative license and for taxation workers to further improve their taxation services.
3. Arrange in an overall manner and make careful preparation for enforcement. The “Procedure Rules” issued by the city bureau is applied for the acceptance, examination and decision on taxation administrative license by the local tax organs at each level in Beijing. Each unit shall define the duties, establish work systems according to the Rule and combined with practical situation to ensure the effective implementation of taxation administrative license.
4. Make close cooperation between different sections and strengthen supervision and examination. The relevant departments of each unit shall, according to the “Supervision and Examination System”, coordinate to set up the supervision and examination system of taxation administrative license and seriously carry out the supervision and examination on taxation administrative license. They shall not only strengthen the supervision and examination on taxation administrative licensing inside the taxation organs, rectify in time the violation during the administrative licensing, and ascertain the responsibility and handle cases strictly according to the responsibility ascertainment system of tax laws enforcement offense, but also strengthen the supervision and examination on the licensed activities by the licensee and investigate and prosecute the violation in licensed activities.
5. According to the “Administrative License Law”, the documents of taxation administrative license can be affixed with the special seal of the taxation administrative licensing department, and the decisive documents, the certificates and related contracts and agreements shall be affixed with the administrative seals of the tax organ. The model of the special seal for taxation administrative license is subject to the city bureau’s “Notice of Printing and Issuing the ‘Provisional Regulation of the Stamps Use and Management on Taxation Administrative Licensing Documents’” (Jing Di Shui Fa (1994) No. 36).
6. The archiving of the files and documents of taxation administrative license shall be done according to the relevant provisions in archives management regulations and combined with the practical situation of each bureau.
7. The problems found during the taxation administrative licensing by each bureau shall be reported in time to the related business departments of the city bureau.

Appendix: 1. The Form of the General Document of Taxation Administrative License
2. Model of the Application Document for Taxation Administrative License
3. Work Process Chart of Taxation Administrative Licensing
4. Document Form of “Beijing Local Taxation Bureau’s Supervision and Examination System of Taxation Administrative License”


June 25, 2004



Procedure Rules of Beijing Local Taxation Bureau for Taxation Administrative Licensing
1. Procedure Rule 1—Making invoice by appointed enterprise
2. Procedure Rule 2—Application for invoice purchase at different location
3. Procedure Rule 3—detach invoice from invoice book for use
4. Procedure Rule 4 – Trans-regional invoice carrying
5. Procedure Rule 5 – Self-printing invoice by enterprise
6. Procedure Rule 6 – Verification of invoice purchase
7. Procedure Rule 7 – paste book, registration book
8. Procedure Rule 8 – sales of fiscal stamp on commission



Supervision and Examination System of Beijing Local Taxation Bureau on Administrative License (Trial)

Chapter 1 General Provision

Article 1 This System is formulated according to the relevant provisions in the Law of People’s Republic of China on Administrative License and the Law of People’s Republic of China on Tax Collection and Management and combined with the practical situation of the taxation in Beijing, in order to standardize the local taxation administrative license in Beijing step by step, ensure the effective implementation of taxation administrative license, and timely rectify and investigate violations during the administrative licensing.
Article 2 Where the taxation organs at each level in Beijing carry out the supervision and examination on taxation administrative license, this system shall apply.
Article 3 The supervision and examination of taxation administrative license (hereinafter referred to as (“supervision and examination”) refers to both the supervision and examination on the administrative license activities by the local tax organs at each level (hereinafter referred to as “internal supervision and examination”) and that on licensees’ activities that have obtained taxation administrative license (hereinafter referred to as the “external supervision and examination”).
Article 4 The tax organs at each level shall carry out the supervision and examination on taxation administrative license in a legal, fair and just manner, always hold the principle of combining guidance with investigation and prosecute, and education with punishment, ensure tax organs’ duties of legally implementing taxation administrative license, and protect the legal rights and interests of citizens, legal persons and other organizations.

Chapter 2 Organizations of Supervision and Examination

Article 5 The jural departments of the tax organs at each level shall organize relevant business management departments to make internal supervision and examination on the administrative licensing by the tax organs at the corresponding level and lower level, and the relevant business management departments of the tax organs at each level shall, as the members of the supervision and examination team, take active part in the supervision and examination and provide required coordination.
The departments at each level that implement the taxation administrative license shall make external supervision and examination on licensees’ activities that have obtained taxation administrative license, and meanwhile give supervision and guidance on the corresponding administrative license by the subordinate tax organs.
The tax inspection organs at each level shall, according to the practical situation of taxation administrative license, carry out the external supervision and examination to licensees.
The tax-related offense report management departments of the tax organs at each level shall take charge in accepting, handling and investigating the reports of licensees’ violation in taxation administrative licensing; the supervision departments of the tax organs at each level shall be responsible for accepting, handling and investigating the offense of the tax organs and their personnel in taxation administrative licensing.
Article 6 The supervision and examination on administrative license carried out by the tax organ at each level shall include:
(1) To formulate the work system for the tax organs at the same level to make supervision and examination on administrative license;
(2) To work out the work and executive plan of supervision and examination;
(3) To carry out supervision and examination;
(4) To guide and supervise the supervision and examination carried out by the tax organ at lower level;
(5) To put forward the suggestions on handling the problems found in examination;
(6) To report the supervision and examination to the relevant departments;
(7) Other work concerning supervision and examination.

Chapter 3 Internal Supervision and Examination of Taxation Administrative License
Article 7 In principle, the internal supervision and examination shall be carried out by year, and the tax organs at each level may, according to actual need, integrate the internal supervision and examination of taxation administrative license into taxation law-enforcement examination to carry out them together.
Article 8 The internal supervision and examination of taxation administrative license mainly includes:
(1) To supervise and examine whether the files are complete, and up to the statutory form and conditions;
(2) Whether a decision on an administrative license is made according to the statutory procedures;
(3) Whether a decision on an administrative license is made according to the statutory limits of authority;
(4) Whether submit the disputed or major administrative license matters to the bureau affairs board for group discussion and decision;
(5) Other relevant work.
Article 9 The specific internal supervision and examination by the tax organs at each level may be implemented with the “Work Rule of Beijing Local Taxation Bureau for Taxation Law-enforcement Examination” as the reference.

Article 4 External Supervision and Examination of Taxation Administrative License
Article 10 The tax organs at each level may, according to the practical situation of this organ, determine of itself the time to organize the external supervision and examination, and may as well integrate the external supervision and examination of taxation administrative license into the tax inspection to implement them together.
Article 11 The external taxation administrative license mainly includes:
(1) Whether an administrative license is obtained by cheat or bribe;
(2) Whether there is an illegal transfer of an administrative license;
(3) Whether there is an activity beyond the scope of administrative license;
(4) Whether someone conceals the truth, provide false materials or refuses to provide the materials that show their actual activities;
(5) Whether someone conducts without permit the activities that shall be conducted upon legal administrative license.
(6) Whether there is other violation of laws, regulations and rules.
Article 12 The administrative licensing departments and tax inspection departments of the tax organs at each level shall, according to the relevant provisions in the Administrative License Law, the Law of Tax Collection and Management, and the Method of Invoice Management, conduct external supervision and examination to licensees.
Article 13 The tax organs at each level may, according to the actual needs of taxation administrative license, make a legal field examination to the production site of a licensee and a sample test to the products he produces. During the examination or test, the tax organ may look over the relevant materials or demand the licensee to submit relevant materials, and the licensee shall faithfully provide relevant information and materials.
As to the items for which the taxation administrative license is made on the spot, the tax organs at each level may set up limitative examination system according to practical work needs, i.e. within a due term after the administrative license is made, the tax organ examines the licensee’s activities that needs administrative license.
The supervision and examination conducted by tax organs shall not disturb the licensee’s normal production and operation.
The tax organs at each level shall provide conditions for the connection with licensees and other organs’ archive systems to examine the licensee’s activities that have obtained license.
Article 14 When the tax organs at each level make supervision and examination on a licensee’s activities that have obtained administrative license, they shall make relevant examination documents, keep down the supervison and examination and its handling result, and make seperate archiving and arrangement to the supervision and examiantion files within one month after the supervision and examination finishes.
The public may apply to the tax organs at each level for looking up the supervision and examination files, and the tax organs shall allow the public to look up the files.

Chapter 5 Handling of Supervision and Examination

Section 1 Handling of Relevant Responsible Personnel

Article 15 The tax organs at each level shall set up complete post responsibility system. The violation by the tax organs and their personnel during defining and implementing administrative license shall be strictly investigated and prosecuted.
(1) In case the violation or offense in administrative licensing by the personnel of tax organs found in the surpervsion and examination is not server enough to charge an administrative sanction or invesgate criminal liability, the concerned personnel shall be given adminstrative handling and economic punish according to the Method of Investigating the Responsibilites for Offense in Tax Collection Laws Enforcement.
(2) Where an administrative organ and its personnel are in any of the following cases, they shall be ordered to rectify by the superior administrative organ or the supervisory department ; where the case is very server, the directly responsible director and other directly responsible personnel shall be given an administrative sanction according to laws :
1. Refuse to accept the application for administrative license that meet the legal requirements;
2. Fail to publicly show at the office site the materials that shall be shown publicly;
3. Fail to fulfill the announced legal liabilities to an applicant or the people concerned during the acceptance, examination and decision on administrative license;
4. In case the materials submitted by an applicant are incomplete and not in legal form, fail to inform the applicant of complementing the incomplete materials at one time;
5. Fail to explain according to laws the reasons why an application for administrative license is refused or why an administrative license is not made;
6. Fail to conduct a hearing that shall be conducted according to laws.
(3) Where the tax organs at each level are in any of the following cases during administrative licensing, they shall be ordered to rectify by their superior administrative organs, and the directly responsible director and other directly responsible personnel shall be given an administrative sanction according to laws; if a case is server enough to constitute a crime, the criminal liability shall be investigated according to laws:
1. Give administrative license to an applicant that fails to meet the legal requirements or make decision on administrative license beyond legal authority;
2. Refuse to give an administrative license to an applicant who meets the legal requirements or fail to make decision on giving administrative license within legal time limit;
3. For those that shall be given license according to the results of bidding or auction, give administrative license without bidding and auction or not according to the results of bidding or auction.
(4) In case the tax organs at each level make bold to charge fees during administrative licensing, they shall be ordered to return the fees illegally collected by their superior administrative organs; and the directly responsible director and other directly responsible personnel shall be given an administrative sanction according to laws.
(5) In case the tax organs fail to fulfill their supervision responsibility or are weak in supervision and cause server consequence, they shall be ordered to rectify by their superior tax organs, and the directly responsible director and other directly responsible personnel shall be given an administrative sanction according to laws; if the case is server enough to constitute a crime, the criminal liability shall be investigated according to laws.
(6) In case the personnel of the tax organs at each level inquire for or accept other’s money and goods or seek other interests and if such a case constitutes a crime, the criminal liability shall be investigated, and if the case is not server enough to constitute a crime, the concerned people shall be given an administrative sanction.
Article 16 The violation by the licensees during the administrative licensing shall be strictly investigated and prosecuted.
(1) In case an applicant for administrative license conceals relevant information or provides false materials for application, the tax organs shall refuse his application or administrative license, and give him a warning.
(2) In case a licensee obtains administrative license by cheat or bribe, the tax organs shall give him an administrative sanction according to laws.
(3) In case a licensee is in any of the following cases, the tax organs shall give him an administrative sanction; if the case is severe enough to constitute a crime, the criminal liability shall be investigated according to laws:
1. Alter, regrate, lease, and lend the taxation administrative license or transfer the administrative license in other forms;
2. Conduct activities beyond the scope of administrative license;
3. Conceal relevant information to the administrative organ responsible for supervision and examination, provide false materials or refuse to provide the materials that show the actual activities.
(4) In case a citizen, legal person or other organizations make bold to conduct without adminstrative license the activities that shall be conducted upon an adminstrative license according to laws, the administrative organ shall take measures to stop such activities according to laws and give them an administrative sanction; if the case constitutes a crime, the criminal responsibilites shall be investigated according to laws.
For other violations by a licensee during the tax collection and management, legal liabilities shall be investigated according to the provisions in the Law of Tax Collection and Management and the Method of Invoice Management.

Section 2 License Suspension

Article 17 When making examination on the licensed activities conducted by a licensee, the tax organs at each level find that the licensee no longer meets the legal requirements, they may decide to suspend the license, and order the licensee to rectify within a time limit. After the licensee has met the legal requirements, the tax organ may resume his administrative license. For the administrative license with a time limit, the suspension time shall be accounted into the time limit.
Article 18 After a decision on license suspension, the implementing and examination department shall make the Approval Form of Decision on Suspending Taxation Administrative License” according to the practical situation, state the items for rectifying and send it to the licensee.
In case the licensee rectify within the prescribed time limit, the implementing department shall, after investigate the fact, make and fill in the Approval Form of Canceling the Decision on Suspending Taxation Administrative License and submit it to the competent leader of the tax organ at the same level, and make the Notice of Canceling the Decision on Suspending Administrative License and send it to the licensee to resume his administrative license. In case the licensee fails to rectify within the prescribed time limit, the implementing department shall cancel his license according to laws.

Section 3 License Cancellation

Article 19 In the following cases, the tax organ that makes the decision on administrative license or its superior organ may make a decision on canceling the administrative license and get through the procedures of cancellation according to the demand of the people concerned or to their authority.
(1) The personnel of a tax organ abuse their authority or neglect their duties to make a decision on administrative license
(2) Make a decision on administrative license beyond legal authority;
(3) Make a decision on administrative license in violation of legal procedures;
(4) Give an administrative license to an applicant that fails to meet the application qualification or meet the legal requirements;
(5) Other cases that may enable a decision of administrative license cancellation.
(6) The administrative license obtained by a licensee by unfair means like cheat or bribe shall be cancelled.
Article 20 The specific procedure for canceling the taxation administrative license is as follows:
(1) In case the superior tax organ finds during the administrative licensing that the license shall be cancelled according to laws, it may order the subordinate tax organ to make a decision on license cancellation. The superior tax organ shall make the Approval Form of the Decision on Canceling Taxation Administrative License, send it to the competent leader of the tax organ at the same level, and make according to the approval comments the Notice of Ordering to Cancel Taxation Administrative License and send it to the subordinate tax organ, which shall cancel the taxation administrative license according to the requirements in the Notice.
In case the subordinate tax organ refuses to execute the cancellation requirement from the superior tax organ, the superior tax organ may make of itself the decision on license cancellation and send it to the licensee.
(2) In case the tax organ that makes the decision on administrative license finds that the license shall be cancelled according to laws, the jural department, implement department and the examination department that carry out the supervision and examination shall, according to their own actual examination, make the Approval Form of the Decision on Canceling Taxation Administrative License, and submit it to the competent leader of the tax organ at the same level for approval. The administrative licensing department shall, according to the approval comments, make the Decision on Canceling Taxation Administrative License and send it to the licensee to tell him the reason and reference of cancellation, take back the certificate of taxation administrative license, and cancel the original license announcement according to rules.
For the tax organs that make a taxation administrative license in violation of rules, the superior tax organ shall order the tax organ that set the taxation administrative license to rectify or cancel the license according to the previously said procedures.
Article 21 If a license cancellation made because of the cases prescribed in Item 1 to 6 of Article 19 in this System will cause major damage to the public interests, the license shall not be cancelled.
If a license is cancelled because of the cases prescribed in Item 1-5 of the Article 19 in this System will tamper the legal rights and interest of the licensee, the tax organs at each level shall make compensation according to laws.
If a license is cancelled because of the Item 6 of Article 19 in this System, the interests of the licensee obtained based on this license is not protected.

Section 4 License Nullification

Article 22 In any of the following cases, the administrative organ shall make a decision on license nullification according to laws and get through the procedures of nullification.
(1) The administrative license’s term of validity expires but fails to be extended;
(2) The administrative license endows a citizen with special qualification, but the citizen is dead or loses capacity for action;
(3) A legal person or other organizations end according to laws
(4) An administrative license is cancelled or recalled according to laws, or the certificate of administrative license is revoked according to laws;
(5) An administrative license cannot be implemented for force majeure;
(6) Other cases in which that an administrative license shall be nullified according to laws or regulations.
Article 23 The specific procedure for nullifying taxation administrative license is as follows:
(1) In case an administrative license can be nullified according to laws, the implementing department may directly get through the procedure of nullification according to the decision on canceling taxation administrative license.
(2) Other cases in which that an administrative license can be nullified according to laws besides cancellation, the jural department, implementing department and examination department that carry out the supervision and examination shall, according to their own actual examination, make the Approval Form of the Decision on Nullifying Taxation Administrative License, and send it to the competent leader of the tax organ at the same level for approval.
The implementing organ shall, according to the approval comments, make the Decision on Nullifying Taxation Administrative License and send it to the licensee to tell him the cause and reference for canceling the administrative license, take back the certificate of taxation administrative license, and cancel the original license announcement according to the rules.

Section 5 Notification System

Article 24 After the taxation administrative licensing department and tax inspection department at each level make supervision and examination on and investigate and prosecute the violation of administrative licensing beyond the jurisdiction of other tax organs that make the decision on administrative license, they shall make Notification of Supervision and Examination for Administrative License to notify the original other tax organs that make the administrative license.
Article 25 the Notification of Supervision and Examination for Administrative License shall include:
(1) Name of the organ notified
(2) Basic information of the licensee
(3) Main violations
(4) Handling result
(5) Name, address and contact of the notifying organ
(6) Notification time

Chapter 6 Supplementary Provisions

Article 26 the jural departments, implementing departments and tax inspection departments of the tax organs at each level shall all set up the Account of Supervision and Examination Management for Taxation Administrative License, and briefly write down the actual information of supervision and examination.
Article 27 The jural departments of the bureaus and sub-bureaus in each district or county shall submit to the city bureau the same year’s work report and form of supervision and examination for taxation administrative license 20 days before each end of the year.
Article 28 This System shall be explained by Beijing Local Taxation Bureau.
Article 29 This System shall come into effect as of the date when it is issued.

　July 19, 2004