To encourage and lead taxpayers to be strongly aware of the importance of paying tax with loyalty and sincerity by law, and behaving themselves on tax payment, in 2019, the China Tax General Department declared that conditions and standards of credit reparation could be corresponded with 19 credit-damaging behaviours in paying tax, which are at high frequency but without causing severe social consequence and loss. All taxpayers at any credit levels who meet the conditions could apply for tax-paying credit reparation. Since 2021, when the evaluation on tax-paying credit started, tax departments would not give administrative punishment, basing on the regulation of “No Punishment on First Violation”, neither would put into a record of evaluation on tax-paying credit.

In this case, to strengthen support for rebuilt enterprises from bankruptcy on tax-paying credit reparation, to arouse vitality of the main market, the China Tax General Department determined the date of January 1st, 2022, would be the beginning date of narrowing limits for tax-paying credit reparation. For those enterprises who meet the following 5 situations, such as correcting credit-damaging behaviours recorded for 6 months or 12 months in the tax administration system with non-repeat credit-damage violation, could apply for tax-paying credit reparation at the Tax Administrative Office.

1. In the settlement or rebuilding procedure, enterprises or administrators who are providing constructive service, have paid off taxation, overdue fee, penalty, and have corrected credit-damage behaviors.
   
   
2. Taxpayers who have been judged as Level D in tax-paying credit level due to severe crime at tax, losing credit but personal information fails to be published or publication suspended owe to the regulation of the China Tax General Department. Application could be submitted before the 12 months recorded non-added credit-damage behaviors.
   
   
3. If the Level-D-judged taxpayer is the person who is in charge of the enterprise, or the financial personnel who has direct responsibility, evaluated as level D taxpayers, gaining a newly clean record for 6 months continuously without credit-damage violation, could apply for credit reparation after.
   
   
4. Being evaluated as level D in tax-paying credit for other credit-damage behaviors, taxpayers have corrected it, performing responsibility on paying tax by law, and keeping a 12-month record with no newly added credit-damage behaviors.
   
   
5. Taxpayers who have owned a record of level D since last year, keeping the previous record this year, have corrected their behaviors by paying tax regularly by law, or whose personal information has not been published by the China Tax General Department, 12 months with a clean record on behavior in tax paying in a row before application.

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