Tax knowledge | Which behaviors affect tax credit rating?

Tax credit is not far from us; in fact, it is truly related to the taxpayer's own interests. Below we will introduce which behaviors affect the tax credit rating?

Some taxpayers may wonder why the starting score for the tax credit rating is 100 points in some years and 90 points in others.？This is because taxpayers with non-recurring indicator information in the most recent three evaluation years start at 100 points, while taxpayers without abnormal indicator information in the most recent three evaluation years start at 90 points. What mainly affects tax credit evaluation is internal tax information and external evaluation information, determined by annual evaluation indicator scores and direct rating methods.。

I. Through the annual evaluation index scoring method

Annual evaluation indicator scores are calculated by deductions. In accordance with relevant laws and regulations, targeting whether taxpayers' tax-related behavior is in good faith and their attitude and degree regarding dishonest behavior, different deduction standards are set, with some deducting 1 point, and others deducting 3, 5, and 11 points. Where penalty amounts are involved, deduction values are also calculated using a progressive percentage-based method. The following deduction indicators appear frequently but are easily overlooked and require key attention：

1. Tax-related filing information

Failure to file tax returns within the prescribed time limit; failure to withhold and remit within the prescribed time limit; failure to submit financial statements within the prescribed time limit; failure to submit the financial accounting system or financial handling methods within the prescribed time limit; failure to report the opening (change) of accounts to the competent tax authority within the prescribed time limit, etc.

2. Tax (fee) payment information

Failure to pay taxes (fees) due that have been declared or for which deferred declaration has been approved within the prescribed time limit; by the end of the assessment period, after tax filing, the taxpayer fails to pay taxes within the tax payment deadline, or the approved deferred payment deadline has expired and the taxpayer still fails to pay within the tax payment deadline; taxes withheld and collected but not remitted as required, etc.

3. Invoice and tax-control device information

Failure to issue invoices as required; failure to keep paper invoices as required and causing invoice damage or loss, etc.

4. Registration and Ledger Information

Taxpayers with abnormal taxpayer records: failure to keep account books, accounting vouchers, and other tax materials in accordance with regulations, etc.

II. Through the direct grading method

The direct rating method, i.e., behavior directly rated as D-level, applies to taxpayers with serious dishonest behavior. If you have any of the following circumstances, you will be directly rated as D-level:

1.Acts such as evading tax payment, evading recovery of tax arrears, fraudulently obtaining export tax refunds, or falsely issuing special VAT invoices, which are adjudged to constitute tax-related crimes.

2.Where the acts listed in the preceding paragraph exist and do not constitute a crime, but the amount of tax evasion (evasion of tax payment) is 100,000 yuan or more and accounts for 10% or more of the total tax payable for each tax type, or where there are tax violations such as evading recovery of tax arrears, fraudulently obtaining export tax refunds, or falsely issuing special VAT invoices, and the tax payment, late fees, and fines have been paid.

3.Failure to pay or fully pay taxes, late fees, and fines in accordance with the tax authority's handling conclusions within the prescribed time limit.

4.Refusing to pay taxes or refusing or obstructing tax authorities from lawfully conducting tax audit enforcement by violent or threatening means.

5.Acts that violate VAT invoice management regulations or other invoice management regulations, causing other units or individuals to fail to pay, underpay, or fraudulently obtain tax refunds.

6.Those who provide false filing materials to enjoy tax preferential policies.

7.Those who fraudulently obtain national export tax refunds and whose export tax refund (exemption) qualification has been suspended and has not yet expired.

8.Those with abnormal taxpayer records, or registered or operated by persons directly responsible for abnormal taxpayer status.

9.Registered or operated by a directly responsible person of a Grade D taxpayer.

10.Other serious dishonesty circumstances determined by the tax authorities in accordance with the law.

Source: State Taxation Administration

Kailing Technology provides enterprise business-finance-tax digital product lines according to enterprise needs:

Solutions for businesses including sales contract management system, procurement contract management system, fully digitalized Leqi interface project, output automatic invoicing system, employee expense control and reimbursement system, input VAT invoice management system, supply chain collaborative reconciliation system, image OCR recognition system, automatic financial bookkeeping system, and electronic accounting archives system, professionally and efficiently supporting the transformation and upgrading of enterprise business-finance-tax digital management.

If you have any business-finance-tax digital transformation needs, welcome to contact us. Beijing Kailing Technology will serve you wholeheartedly.