The State Taxation Administration recently released the Announcement of the State Taxation Administration on the Evaluation and Repair of Tax-pay Credit (STA Announcement (2021) No. 31), to be implemented from January 1, 2022.
According to the document, there are five circumstances under which a taxpayer with serious dishonest behavior or undergoing bankrupt reorganization may apply with the competent tax authorities for the repair of its tax-pay credit after it corrected the dishonest behavior, performed the tax legal liability, is waived from the release of its major tax violating information, and recorded no dishonest tax-pay behavior for six or 12 months. After completing the repair, the taxpayer would not be subject to the restriction of being rated as D for two years if its rating is no longer D, and it would apply the corresponding tax policies and management services based on the repaired tax credit, with the previous policies and services not subject to retroactive adjustment.