BEIJING - A series of government regulations took effect on Oct 1 amid China’s efforts to promote integrity and credibility among corporations.
According to an interim regulation on the disclosure of corporate information, endorsed by Premier Li Keqiang, companies are obliged to deliver annual reports to industrial and commercial authorities between Jan 1 and June 30 each year.
Reports will contain information such as contacts, profits, tax payments and other business activities including details of new subsidiaries and stake purchases.
Corporations violating the rules for consecutive three years will be blacklisted which will affect their bidding and application for loans.
Starting from Oct 1, enterprises will also have to abide by the Tax Credit Management Measures and Measures on Disclosing Information on Major Illegal Tax Cases issued by the State Administration of Taxation.
The two regulations are aimed at establishing tax-related mechanism of punishing dishonesty and enhancing tax credit system.
Tax credit will be divided into A, B, C and D levels, with D the lowest.
Taxpayers at D level will face high penalties and restrictions in their operation, financing and production license.
For manufacturers and sellers of medical devices, they will have to follow five regulations revised by the State Food and Drug Administration.
The regulations have clarified on registration, license of production and sales, standards of specifications as well as authorities’ supervision measures which are expected to rectify market disorder.