A general taxpayer represents a business whose transactions can be clearly recorded, and sales of goods are not more than RMB 1million for a production company or RMB 1.8 million for a trading company. Those other than a general taxpayer are treated as a small-scale taxpayer.
For taxpayers who submit application when they meet the following conditions, the competent tax authorities should conduct qualification certification of general taxpayer for them.
- There is a fixed location for production and operations.
- Set up accounting ledgers, carry out accounting based on legal and valid vouchers and provide accurate tax information in accordance with regulations of the regulated accounting system of the State.
The following taxpayers can not be approved as general taxpayers.
- Individuals except sole proprietorship;
- Non-enterprise organization who choose to pay tax as a small-scale taxpayer;
- Enterprises who do not often incur taxable behavior and chooseto pay tax as a small-scale taxpayer.
