Tax collection is the collective name for a series of activities carried out by tax authorities in accordance with tax laws and regulations to collect and turn over the tax payable of taxpayers into the treasury of a country (region). It is an important part in tax administration, covering the whole-process management from common tax payments to tax arrears.

Tax payment is an important part for taxpayers to fulfill tax obligations in accordance with the law, involving accurate calculation and full payment. It can be processed through two distinct channels: manual payment and electronic payment.

Manual tax payment includes traditional tax payment methods, such as cash and over-the-counter bank transfer. This method primarily serves taxpayers who are less familiar with digital operations, engage in smaller-value transactions, or prefer cash/bank counter payments. Currently, with the development of electronic payment technology, the proportion of manual tax payment has decreased significantly.

With the help of advanced information technology, electronic tax payment has become the mainstream way of tax payment. Taxpayers can pay taxes through electronic means such as authorized direct debit, Point of Sale terminal and third-party payment. This approach significantly streamlines tax payment procedures, conserving taxpayers' time and effort while substantially enhancing compliance efficiency. By working closely with the treasury of a country (region), banks and third-party payment organizations, tax authorities are able to build secure and stable electronic tax payment channels to ensure the accurate payment of taxes and timely transmission of information. Electronic tax payment, with its inherent convenience and efficiency, has become a driving force in propelling tax administration toward digitalization and intelligent transformation, significantly advancing the modernization of tax services.

In order to protect the rights and interests of taxpayers, tax authorities will refund to taxpayers or credit against the tax payable the portion of tax paid by taxpayers that has been overpaid, erroneously paid or eligible for specific preferential treatments, such as export tax refund, overcharged tax refund, VAT credit refund, VAT credit offsetting against arrears and tax-free shopping refund for overseas tourists. These tax refund and credit policies have assumed the functions of policy guidance, reduced the burden of taxpayers, and promoted social equity. Effective tax refund and credit policies demonstrate the flexibility of tax systems, enabling precise economic regulation through dynamic policy adjustments. This approach optimizes resource allocation, enhances enterprises' domestic and global competitiveness, promotes social equity, and strengthens taxpayers' sense of benefit.

[Tax Administration Product No.7: Efficient Tax Payment and Tax Refund] (to be released in 2026)

The management of tax arrears refers to a series of measures taken by tax authorities in response to the failure of taxpayers to pay their taxes in full in accordance with the prescribed deadlines, so as to ensure that all taxes are collected to the fullest extent possible.

Tax arrears reminder refers to the activities of tax authorities to remind taxpayers of the taxes that have been generated by the tax returns filed by themselves, the assessment made by tax authorities or in other ways but have not paid within the prescribed period, and to urge them to fulfill their tax obligations of paying taxes. Tax authorities employ written notices, phone calls, and digital channels to remind taxpayers of tax arrears, specifying the amount due, payment deadlines, legal consequences, and dispute resolution options. These pre-enforcement notifications-issued prior to credit disclosure or compulsory collection-demonstrate balanced governance by reducing administrative costs, minimizing follow-up collection efforts, mitigating operational disruptions to taxpayers, and safeguarding corporate credit ratings and social reputation.

Taxpayers who are unable to pay the tax arrears in one lump sum due to financial difficulties or other reasonable causes may apply to the tax authorities for payment by installments. Tax authorities shall comprehensively assess the taxpayers' business operations, financial capacities, the amounts of tax in arrears and other factors, and upon approval, engage with taxpayers on the payments of taxes by installments. The agreement specifies the number of installments, the amount of payment per installment, and deadlines. During the implementation stage, tax authorities shall continuously monitor the compliance and remind taxpayers for timely payments. This approach provides financial flexibility to prevent taxpayers' business distress from short-term liquidity issues, and ensures gradual recovery of tax revenue, reconciling statutory rigor with taxpayers' legitimate hardships and safeguarding business continuity and revenue stability.

Deferred payment constitutes a special policy arrangement for eligible taxpayers who meet specific requirements. Where force majeure and other major emergencies have caused serious damage to the normal production or business operations and taxes are unable to be paid on time, taxpayers may apply for an extension (depending on the tax law and regulation of the respective jurisdiction). After receiving the application, tax authorities will verify relevant circumstances in detail and, after confirming the circumstances, approve the taxpayer's application for deferring the tax payment within a prescribed period. This demonstrates the humanistic dimension of tax policy and assists taxpayers through hardships. Meanwhile, tax authorities shall closely monitor the business recovery progress of taxpayers and initiate timely collection of taxes after the expiration of deferred periods, in order to ensure the enforcement of statutory tax rights and interest, and maintain the balance between the rigor and flexibility of tax administration.

By disclosing tax arrears information in accordance with the law (if applicable), tax authorities aim to strengthen public supervision and urge taxpayers to fulfill their tax obligations. Information concerning enterprises and individuals with tax arrears whose assessment is final may be regularly posted on official websites, bulletin boards of taxpayer service halls or through other channels, depending on the tax laws and regulations of the respective jurisdiction. Such information may covers taxpayer's name, tax identification number, types and amounts of tax arrears and other key data. For arrears caused by failures of withholding agents, such as employers, information of the withholding agents could be posted. For major tax delinquency cases, tax authorities may collaborate with media to increase exposure. This initiative subjects delinquent behavior to public oversight, generates public scrutiny pressure on defaulters, and motivates them to voluntarily settle the tax arrears. Meanwhile, taxpayers with a high level of compliance and good faith can be commended, which reminds other taxpayers to draw lessons, strengthen tax compliance awareness, purify the tax environment, maintain tax administration order, and safeguard national (regional) revenue and market fairness.

For taxpayers who refuse to pay tax arrears, tax authorities may take compulsory measures. First, taxpayers may be required to provide tax payment guarantees, such as mortgaged immovable properties (e.g., real estate, land) or obtaining third-party guarantee commitments, to secure tax arrears settlement. If taxpayers fail to provide guarantees, tax authorities may impose liens on movable assets or negotiable securities in accordance to the tax law and regulation of the respective jurisdiction. For taxpayers with unsettled tax arrears seeking to depart from the country (region), tax authorities may legally restrict their departure to prevent them from evading tax obligations. These compulsory measures, which blend coercive and preventive approaches and exert comprehensive pressure from asset controls to mobility restrictions, can compel taxpayers to address tax arrears issues and make full repayment, uphold the authority of tax law, and ensure complete collection of tax revenue.

[Tax Administration Product No.8: Strengthening the Management of Tax Arrears and Guaranteeing the Collection of Taxes] (to be released in 2028)