Update On Penalties For First Violations Of Chinese Tax Rules

The Chinese State Council Standing Committee, the State Administration of Taxation (SAT) issued Announcement [2021] No. 6 (Announcement 6), which took effect on April 1, 2021 and modifies regulations related to penalties for first-time violations of tax compliance rules.

In order to support the tax system reform goals of the Chinese State Council Standing Committee, the State Administration of Taxation (SAT) issued Announcement [2021] No. 6 (Announcement 6), which took effect on April 1, 2021 and modifies regulations related to penalties for first-time violations of tax compliance rules. In accordance with the most current relevant laws and regulations, the announcement provides that no administrative penalties will be imposed for first-time tax violations, as long as the violations arise from matters listed in the announcement and the resulting harmful consequences are minor. Violations must also be self-corrected before the matter comes to the attention of