On 1 September 2026, the State Taxation Administration (STA) officially released the “Draft Tax Administrative Reconsideration Rules (Consultation Draft)” for public consultation, marking a significant step in modernizing China’s tax dispute resolution framework. The draft rules aim to align tax administrative reconsideration procedures with the newly revised Administrative Reconsideration Law of the People’s Republic of China, which took effect on 1 January 2024. The consultation period runs until 30 September 2026, during which stakeholders including taxpayers, tax practitioners, legal professionals, and industry associations are invited to submit written comments to the STA’s Legal Affairs Department. The draft comprises eight chapters covering general provisions, jurisdiction, acceptance, review, mediation, decisions, supervision, and supplementary provisions, introducing several procedural enhancements designed to strengthen taxpayer rights and improve administrative efficiency.
Key Takeaways
- Expanded Scope and Clearer Jurisdiction: The draft explicitly defines the scope of tax matters subject to administrative reconsideration, including tax collection, refunds, offsets, incentives, and enforcement measures. It clarifies jurisdictional rules for cross-regional tax disputes and establishes the STA as the reconsideration authority for specific national-level tax matters, while provincial tax bureaus handle local cases.
- Enhanced Procedural Protections for Taxpayers: Notable improvements include a mandatory oral hearing mechanism for complex cases, extended evidence submission periods, and the introduction of a “third-party participant” system allowing interested parties to join proceedings. The draft also requires tax authorities to provide written explanations for evidence they rely on, enhancing transparency.
- Digitalization and Efficiency Measures: The rules promote electronic filing, virtual hearings, and digital document exchange through the national tax service platform. They set strict timelines: acceptance within 5 working days, review completion within 60 days (extendable by 30 days), and decision issuance within 10 days of conclusion. These provisions aim to reduce the average case disposal time by approximately 20 percent.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement