The Ministry of Finance, the State Administration of Taxation and the People's Bank of China recently issued the Circular on Further Strengthening Management on Handling Fees for Commissioned Collection of Taxes.
The circular stipulates the scope of commissioned collection of taxes, and states that tax agencies shall pay handling fees of no more than 2% of the commissioned tax collections, and payment of handling fees to a single tax withholding agent is capped at 700,000 yuan a year.