On 21 December 2023, the State Taxation Administration (STA) released the Circular of the General Office of the State Taxation Administration on the Tax Filing and Payment Deadlines for 2024, clarifying the tax filing and payment deadlines for taxpayers who are required to complete tax filing and payment within 15 business days upon the end of each month or quarter. Specifically, it gave the following deadlines:
- Deadline for filing and payment of taxes in months including January, March, July, August, and November is the 15th day of the month
- Deadline for filing and payment of taxes in February is extended to 23 February, 2024, as the Spring Festival holiday falls on 10-17 February
- Deadline for filing and payment of taxes in April is extended to 18 April 2024, as the Tomb Sweeping Festival falls on 4-6 April
- Deadline for filing and payment of taxes in May is extended to 22 May 2024, as the Labor Day holiday falls on 1-5 May
- Deadline for filing and payment of taxes in June is extended to 19 June 2024, as the Dragon Boat Festival holiday falls on 8-10 June
- Deadline for filing and payment of taxes in September is extended to 18 September 2024, as the Mid-Autumn Festival holiday falls on 15-17 September
- Deadline for filing and payment of taxes in October is extended to 24 October 2024, as the National Day holiday falls on 1-7 October
- Deadline for filing and payment of taxes in December is extended to 16 December 2024, as 15 December is a Sunday
Local tax bureaus can adjust the tax filing and payment deadlines upon special situations. However, such adjustments should be filed with the STA in advance.
When Are China’s Tax Filing, Payment Deadlines for 2024?
Table 1 shows China’s tax filing and payment deadlines for 2024.
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Month
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Date
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January
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15 January
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February
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23 February
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March
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15 March
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April
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18 April
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May
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22 May
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June
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19 June
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July
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15 July
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August
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15 August
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September
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18 September
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October
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24 October
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November
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15 November
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What Taxes Are Subject to These Tax Filing, Payment Deadlines?
Among China’s 18 taxes, Table 2 shows those subject to tax filing and payment deadlines within 15 business days upon the end of each month or quarter.
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Tax
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Tax Filing and Payment Provisions
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Legal Basis
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Corporate Income Tax (CIT)
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CIT is prepaid on a monthly or quarterly basis in accordance with the figures shown in the accounting books of the company. Companies are required to file CIT tax returns and prepay tax within 15 days from the end of the month or quarter.
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Articles 53, 54, and 55 of the Corporate Income Tax Law of the People’s Republic of China (revised in 2018)
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Value-Added Tax (VAT)
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The deadline for VAT payment can be every one day, three days, five days, 10 days, 15 days, one month, or one quarter. The specific tax payment deadline for a taxpayer is assessed by the authorized tax authorities according to the taxpayer’s amount of tax payable. A taxpayer who is unable to make payments according to a fixed deadline may opt to pay tax for each transaction.
A taxpayer who opts for a tax payment period of one month or one quarter should file a tax return and make tax payments within 15 days from the date of expiry of the tax payment period. Meanwhile, a taxpayer who opts for the tax payment period of one day, three days, five days, 10 days, or 15 days should pre-pay tax within five days from the date of expiry of the tax payment period and file a tax return and make tax payments within 15 days from the first day of the following month as well as settle the tax amount payable for the preceding month.
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Articles 23 and 24 of Provisional Regulations of the People’s Republic of China on Value-Added Tax
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Consumption Tax (CT)
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The deadline for payment of consumption tax shall be one day, three days, five days, 10 days, 15 days, one month, or one quarter respectively. The specific tax payment deadlines for a taxpayer shall be assessed respectively by the tax authorities in charge according to the tax amount payable to the taxpayer. A taxpayer who is unable to pay tax by fixed deadlines may pay tax for each transaction.
A taxpayer who opts for a tax payment period of one month or one quarter shall file tax return and make tax payment within 15 days from the date of expiry of the tax payment period. A taxpayer who opts for the tax payment period of one day, three days, five days, 10 days, or 15 days shall pre-pay tax within five days from the date of expiry of the tax payment period, and file tax return and make tax payment within 15 days from the first day of the following month as well as settle the tax amount payable for the preceding month fully.
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Articles 14 and 15 of Provisional Regulations of the People’s Republic of China on Consumption Tax (revised in 2008)
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Urban Maintenance and Construction Tax (UMCT)
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The tax obligation of UMCT (as well as the other two surtaxes—education surcharge and local education surcharge) occurs at the same time as the tax obligation of VAT and CT and is paid simultaneously with the VAT and CT, respectively.
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Articles 7 and 8 of the Urban Maintenance and Construction Tax Law of the People’s Republic of China
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Individual Income Tax (IIT)
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Taxpayers deriving income from business operations shall compute individual income tax on a yearly basis, file tax returns with the tax authorities within 15 days from the end of the month or quarter, and pay tax in advance.
Where a taxpayer obtains taxable income but there is no withholding agent, he/she shall file tax returns with the tax authorities within the first 15 days of the following month after obtaining the income and pay tax.
A nonresident individual who derives income from wages and salaries from two or more sources in China shall declare and pay tax within the first 15 days of the following month after obtaining the income.
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Articles 11, 12, 13, and 14 of the Individual Income Tax Law of the People’s Republic of China (revised in 2018)
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Tobacco Tax
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The tobacco tax shall be levied monthly, and the taxpayer shall file and pay the tax within 15 days after the end of the month when the tax payment obligation occurs.
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Article 9 of the Tobacco Tax Law of the People’s Republic of China
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Resource Tax
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Resource tax shall be declared and paid on a monthly or quarterly basis. Where the taxpayer is unable to compute and pay resource tax in accordance with a fixed cycle, declaration and payment may be made on a transaction basis.
Taxpayers declaring and paying tax monthly or quarterly basis shall complete declaration and payment formalities with the tax authorities within 15 days from the last day of a month or a quarter. Taxpayers making declarations and payments on a transaction basis shall complete declaration and payment formalities with the tax authorities within 15 days from the date of occurrence of tax payment obligation.
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Article 12 of the Resource Tax Law of the People’s Republic of China
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What Are the Consequences of Missing Tax Filing and Payment Deadlines?
Where a taxpayer fails to go through the formalities for tax declaration and submit information on a tax payment within the specified time limit, the taxpayer shall be ordered by the taxation authorities to rectify within the specified time and may be fined not more than RMB 2,000 (US$290). If the offenses are serious, the taxpayer may be fined between RMB 2,000 (US$290) and RMB 10,000 (US$1,450).
Failing to make tax declarations and adequately pay the tax payable will lead to penalties for late payment, in addition to the payment of the amount of tax the taxpayer fails to pay or underpays. The taxpayer shall also be fined not less than 50% but not more than five times the amount of tax it fails to pay or underpays.
Moreover, such violations can affect the tax credit rating of businesses, which will lead to increased tax supervision. Businesses operating in China are suggested to pay attention to the tax filing and payment deadlines introduced in the article.
This article was originally published in China Briefing, which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in China, Hong Kong, Vietnam, Singapore, India, and Russia. Readers may write to [email protected] for more support.