What Is a Taxpayer Identification Number?

The taxpayer identification number is the number on the tax registration certificate, usually referred to as "tax number", and the taxpayer identification number of each enterprise is unique. This personal and permanent number code is likely to become our second "identity card."

Taxpayer Identification Number

Claimed

The taxpayer identification number is generally derived from the code of the Technical Supervision Bureau, and the code of the Technical Supervision Bureau is generally 9 digits, so the area code is added in front. If the area code is added with the code of the Technical Supervision Bureau, then a check code is added. If the number of digits is insufficient, add L in the middle. If X cannot be separated from the check code, it means 1-9.

In June 2013, the Legislative Affairs Office of the State Council publicly solicited opinions from the People's Republic of China on the Amendment to the Tax Collection and Management Law of the People's Republic of China (Consultation Draft), and then revised and improved the opinion draft after studying and absorbing opinions from all walks of life. This time it was again asking for opinions from the society. ^[1]

According to the "Revised Draft Tax Collection Management Law of the People's Republic of China (Draft for Solicitation of Comments)" announced by the State Administration of Taxation this week, in the future, each of us citizens may have a unique and life-long compilation prepared by the tax department to confirm their Digital code identification for identity. This personal and permanent number code is likely to become our second "identity card." In addition, a person in the taxation system told a reporter from Beijing Youth Daily that the introduction of relevant regulations on the "Tax Identification Number" would enable more existing "gray income" problems to be more effectively monitored. ^[2]

The country will prepare a unique tax ID for each person, and this tax ID is only one for life. The personal tax number is likely to be an ID card number or compiled on the basis of the ID card number. According to China's social insurance law, the ID card number is the same as the social security number.

On February 3, 2015, the "Draft Amended Tax Collection Management Law (Draft for Solicitation of Comments)" was closed at the Legislative Affairs Office of the State Council for comments. A prominent feature of this informative opinion draft is the clear legal status of the taxpayer identification number system.

"The state implements a uniform taxpayer identification number system." The opinion draft clearly states that in the future, the taxation department will compile a unique and permanent digital code identification for businesses, citizens and other taxpayers to confirm their identity in accordance with national standards.

In 2013, China's enterprises, institutions and social organizations all have tax registration codes, which are mainly composed of area codes and organizational codes. The tax registration code of individual industrial and commercial households is their resident ID number. For natural persons, the tax code system has not achieved full coverage.

Regarding the identification number of a natural person's taxpayer, this opinion draft clearly states: "Natural person's taxpayer or its withholding agent should declare to the tax authority before the expiration of the tax declaration period stipulated by laws and administrative regulations from the date of the first tax obligation. , The tax authority registers its taxpayer identification number. "

In fact, in 2005, the State Administration of Taxation, when talking about the reform of personal income tax, has proposed to rely on personal identification numbers to compile taxpayer identification numbers, based on which, in accordance with the requirements of "one-family" storage, a complete, Accurate taxpayer files, collect and organize taxpayer income and various information related to their tax matters, and implement dynamic management.

Liu Jianwen, a professor at the Peking University School of Law who participated in the revision and discussion of the "Draft Tax Collection Management Law Amendment (Draft for Comment)" throughout the process said that the establishment of a taxpayer identification number system will help consolidate the taxpayer's integrity system and use taxpayer identification numbers in series It can also provide information on various aspects so as to realize "information management tax", which can also lay a solid foundation for the future formulation of the real estate tax law and the improvement of the personal income tax law.

The Revised Draft Tax Collection Management Law (Draft for Solicitation of Comments) was promulgated in 1992, after a minor repair in 1995 and an overhaul in 2001. This revision was started in 2008 and is also a major overhaul. The revised clauses are more than the original clauses. The draft of comments will also be submitted to the National People's Congress to complete the law revision process based on the status of comments.

Interpretation of taxpayer identification number

Personal tax ID may be ID number

Payment of social security, buying a house, stock speculation ... please provide your tax ID first, family taxation, real estate tax, unsolved inheritance tax ... Everyone must have a tax ID. The "Revised Draft of Tax Collection Management Law (Draft for Solicitation of Comments)", which was concluded at the Legislative Affairs Office of the State Council on the 3rd, tells us that the era of personal tax numbers is approaching.

1. Each person has a "three-in-one" number

The country will prepare a unique tax ID for each person, and this tax ID is only one for life. The personal tax number is most likely to be an ID number or is based on the ID number. According to China's social insurance law, the ID number and social security number are the same. This year, after the social security system was merged, every Individuals will have a social security number, which means that everyone will have a "three-in-one" number.

The integration of tax ID and social security number is a universal practice in the world. Maybe many people think that this is for memorable reasons, but there is a deep meaning, which means that because you pay taxes to the government, the government You provide a logical relationship for social security.

2. "Please provide your tax ID"

"Please provide your tax ID", we will often hear the phrase, for example, when paying social security premiums each month, and receiving social security premiums after retirement, if the unit withholds and pays, the unit will provide it on behalf; For example, when registering real estate such as land and houses with government departments.

In the daily life in the future, as long as it involves contracts and agreements, personal tax IDs will be required, which will be required for buying and selling and leasing houses; it will be required for stock speculation and insurance purchases; and the bank will provide it to the tax department for each large transfer The personal tax number of the account holder.

3. Realize a family tax

China has proposed the establishment of personal tax numbers dating back at least 10 years. In 2005, when talking about individual tax reform, the State Administration of Taxation proposed that the taxpayer identification number should be compiled based on the personal identification number, and a complete and accurate taxpayer file should be established in accordance with the "one-family" storage requirements.

Personal tax numbers and individual tax reforms are often mentioned at the same time. In 2015, while proposing the establishment of a personal tax number system, the Ministry of Finance and the State Administration of Taxation listed in the 2015 reform list that they must step up their personal tax reform and propose reform plans.

The goal of the individual tax reform is "comprehensive tax collection", that is, putting all income in a "basket" and levying a single tax at a uniform tax rate. Low-income earners pay less and high-income earners pay more. The personal tax number is actually that big basket. With today's diversified income, with this tax number, everyone's tax information can be grouped together, and eventually the family can calculate a tax.

4. Tax reforms are in action this year

It is foreseen from various signs that in 2015, the tax reform that has been silent for many years will have action, and the personal tax number is a necessary technical condition to achieve this reform, and the two must be advanced simultaneously.

In fact, not only individual tax reforms, including real estate tax reforms, including the levy of inheritance taxes. These direct tax reforms, which are closely related to our vital interests, require the establishment of a personal tax number system as the basis. Only personal transactions in the personal tax number can be mastered. , Income, property information, etc., can eliminate taxation loopholes and achieve fair taxation.

Personal tax ID is actually to establish a file for each person's life-long tax payment behavior, and to aggregate individual tax payment behaviors under the tax ID.

From the perspective of Liu Jianwen, a professor at the Peking University School of Law who participated in the revision and discussion of the Draft Tax Collection Management Law Amendment (Draft for Comment), it appears that the personal tax number is only a small number on the surface, and behind it is the tax information bundled on it. Behind it is the social credit system.

Whether the ID number, personal tax number, and social security number are three-in-one is not the core issue. What really matters is whether the systems and information behind them are in common.

Whether the tax information can be shared with everyone's identity information, bank information, real estate information, etc., whether it can open the barriers of the departments, realize the interconnection of the information of each department, and eliminate the "islands" of information. This is the core of establishing a personal tax number system. It is also the core of building a society-wide credit reporting system. ^[3]