The Implementation Measures Concerning Formulation of Regulations and Rules of Tax Administrations hereby promulgated has been adopted at the first executive meeting of the State Administration of Taxation in 2002 and shall enter into effect as of March 1， 2002.
　　[Signature of the Commissioner]
　　February 2， 2002
　　Implementation Measures Concerning Formulation of Regulations and Rules of Tax Administrations
　　Article 1 In order to regulate the formulation of regulations and rules of tax administrations， these Measures are formulated in accordance with the Legislation Law of the People's Republic of China and the Regulations on Procedures for the Formulation of Regulations and Rules promulgated by the State Council.
　　Article 2 Regulations and rules of tax administrations referred to hereunder （hereinafter referred to as "Tax Regulations and Rules"） shall mean regulatory documents with a general binding force to nation-wide taxation authorities， taxpayers， withholding agents and other parties involved in the tax affairs， which are formulated within the limits of the functions and powers of State Administration of Taxation pursuant to laws or the administrative regulations， decisions， and decrees promulgated by the State Council.
　　Tax Rules are generally called "Provisions"， "Directive Rules"， "Rules"， "Detailed Implementation Rules"， "Decisions" or "Measures".
　　Tax Regulations and Rules shall be promulgated in the form of decrees of State Administration of Taxation.
　　Article 3 Tax Regulations and Rules shall reflect the principles of maintaining the consistencies between rights and obligations as well as between powers and duties.
　　Tax Rules shall have no retroactive binding force unless otherwise stipulated for the better protection of the interests of taxpayers or other parties involved in the tax affairs.
　　Article 4 Tax Regulations and Rules shall expressly provide their bases， purposes， applicability， subjects， rights and obligations， specific rules， procedures， legal liabilities， and effective date.
　　The language of Tax Regulations and Rules shall be simple and concise， and their content shall be specific and applicable.
　　Article 5 Tax Rules shall be arranged into articles.
　　In case that Tax Regulations and Rules are fairly complicated， they may， if necessary， be arranged into chapters， sections， articles， paragraphs， items and sub-items. The serial numbers of chapters， sections and articles shall be indicated by Chinese numerals sequentially. No serial number shall be added before any paragraph. The serial numbers of items shall be indicated by Chinese numerals in parentheses sequentially. The serial numbers of sub-items shall be indicated by Arabic numerals sequentially.
　　Article 6 Where any of the Administration's departments deem it necessary to formulate any Tax Regulations and Rules， such department shall apply for project establishment in respect to the proposed formulation matter in accordance with the Regulations on Procedures for the Formulation of Regulations and Rules within the first quarter of each year.
　　The application for project establishment shall state the necessity of such formulation， the major issues to be addressed thereunder， and the major systems to be established through such formulation.
　　The Department of Policy and Legislation shall collect and study applications for project establishment， prepare an annual plan for formulation of Tax Regulations and Rules based on them， and submit such a plan to the Administration's executive meeting for approval before implementation.
　　The annual plan of formulation of Tax Regulations and Rules may be adjusted based on the specific situation during the implementation process.
　　Article 7 Tax Regulations and Rules shall be drafted by the department in charge. If the content of such Tax Regulations and Rules involves two or more departments， the department designated by the Commissioner or the Department of Policy and Legislation shall be responsible for the drafting.
　　Article 8 In the course of Tax Regulations and Rules， the department responsible for the drafting shall solicit comments and opinions from other departments within the Administration as well as local taxation authorities.
　　If the content of Tax Regulations and Rules is directly related to the significant or crucial interests of citizens， legal entities or other organizations， the drafting department shall make public the draft to solicit the comments and opinions of relevant authorities， organizations， citizens or legal entities. If necessary， a public hearing shall be held and organized.
　　Article 9 Upon completion by the drafting department of the draft of Tax Regulations and Rules for examination， such a draft along with the drafting note， the comments and opinions solicited during the process of drafting and other related materials shall be submitted to the Department of Policy and Legislation for examination.
　　Article 10 The Department of Policy and Legislation shall promptly examine the draft of Tax Regulations and Rules from the following aspects：
　　1. Whether the draft is in compliance with the requirements under Articles 2， 3， 4 and 5hereof；
　　2. Whether the draft is in contradiction to or conflict with the Constitution， any law， or any administrative regulation， decision or decree of the State Council；
　　3. Whether the draft is in harmony or coordinated with other Tax Regulations and Rules；
　　4. Whether the comments and opinions of relevant authorities， organizations or individuals have been solicited and duly addressed in the draft in respect of major issues；
　　5. Whether the draft satisfies the technical requirements of legislation；
　　6. Other matters subject to examination.
　　If the Department of Policy and Legislation finds any major defects in the draft for examination during its examination process， it may return such a draft for examination to the original drafting department for further modification.
　　Upon approval by the Department of Policy and Legislation following its examination， the draft Tax Regulations and Rules and the corresponding examination opinion shall be formulated and submitted to the Administration's executive meeting for consideration.
　　Article 11 The draft Tax Regulations and Rules shall be adopted by the Administration's executive meeting following its consideration.
　　Article 12 Once the draft Tax Regulations and Rules are adopted by the Administration's executive meeting， the Department of Policy and Legislation shall prepare the Decree of State Administration of Taxation， go through necessary document handling procedure， and submit them to the Commissioner of the Administration for signature and promulgation.
　　Article 13 Tax Regulations and Rules that are formulated by State Administration of Taxation taking the lead and jointly with other ministries of the State Council shall be formulated in accordance with the provisions of these Measures.
　　Tax Regulations and Rules jointly formulated pursuant to the preceding paragraph shall be countersigned by such other ministries. Tax Regulations and Rules shall be promulgated through the decree of State Administration of Taxation upon joint authorization by the Commissioner of the Administration and the chiefs of such other ministries.
　　Article 14 Upon the Commissioner of the Administration's signing of such Tax Regulations and Rules， the Tax Regulations and Rules shall be promptly published in State Administration of Taxation Bulletin and China Taxation News.
　　The Tax Regulations and Rules published in State Administration of Taxation Bulletin shall be the official version.
　　The Administration's General Office and the Department of Policy and Legislation shall be responsible for the compilation of State Administration of Taxation Bulletin and the public announcement of relevant Tax Regulations and Rules.
　　Article 15 The Tax Regulations and Rules shall be submitted to the State Council for record within 30 days following the promulgation of the decree of State Administration of Taxation， which shall be handled and implemented by the Department of Policy and Legislation.
　　Article 16 The Department of Policy and Legislation shall be responsible for editing and publishing the compilation of relevant Tax Regulations and Rules in accordance with the Administrative Regulations Concerning the Edition and Publication of the Regulations issued by the State Council.
　　Article 17 The amendment and annulment of Tax Regulations and Rules shall be made with reference to applicable provisions of these Measures.
　　Article 18 The laws， administrative regulations that are drafted by State Administration of Taxation on behalf of or upon delegation by competent authorities shall be handled with reference to the principles stated hereunder.
　　Article 19 These Measures shall enter into effect as of March 1， 2002.