In a significant upgrade to China’s tax service regulatory framework, the Administrative Tax Service Regulations 2025 on Tax-related Professional Services (for Trial Implementation) are set to come into effect on May 1, 2025. This comprehensive system introduces a credit scoring and intelligent supervision mechanism, providing a closed-loop regulatory model that covers the full cycle of professional tax service activities.
The new regulations are the culmination of a years-long policy evolution, starting with the Measures on Regulation of Professional Tax-related Services (Trial Implementation) in 2017, followed by the optimization of credit scoring rules in 2019, and the publication of the Basic Standards for Tax-related Professional Services and the Code of Professional Ethics for Tax-related Professional Services in 2023.
China’s tax service regulations have gradually evolved from a basic oversight framework to a refined, intelligent, and legally elevated system. The 2025 Tax Service Regulations institutionalize dynamic credit management, establish clear service classifications, and implement real-time monitoring via credit codes, highlighting a clear trajectory toward regulatory precision, transparency, and risk-based supervision.
Key Changes under China’s Tax Service Regulations 2025
- Dynamic credit management: The new system assigns a unique credit QR code to each tax-related institution and practitioner, allowing for real-time credit level (TSC5 to TSC1) viewing, historical scores, and records of misconduct.
- TSC credit code: The system uses color-coded indicators and score levels to clearly distinguish between different tax service providers, offering a transparent and convenient tool for users to make informed choices.
- Scoring dimensions: The TSC score is calculated based on nine key indicators, focusing on areas such as service quality, real-name registration compliance, client credit performance, and tax authority evaluations.
- Strengthened classified supervision: The Tax Service Regulations 2025 classify tax-related professional services into two categories: general tax services and specific tax services.
- Closed-loop risk management: The system establishes clear expectations for regulatory inspections by tax authorities and requires tax-related service providers to retain complete and verifiable work papers for all specific services rendered.
The new regulations introduce multi-level disciplinary mechanisms, including public disclosure of offenses, downgrading of TSC credit levels, and inclusion on key monitoring lists.
How to Check Your Tax Service Provider’s Credit Rating
- Official tax bureau website: Visit the “Tax Services – Publicity of Tax-related Professional Service Institutions” section to access verified information, including credit levels and qualification status of registered institutions.
- Credit code scanning: Enterprises can scan a service provider’s TSC credit QR code to instantly view real-time credit ratings, historical scores, and compliance records.
- Other official platforms: Information is also accessible via the Electronic Tax Bureau and the Individual Income Tax App.
The inquiry results typically include detailed data such as service provider name, TSC credit score, legal representative, registered address, number of employees, number of client entities and individuals served in the current year, and year of establishment.
Best Practices for Managing Tax Service Provider Relationships
- Provider selection and credit monitoring: Enterprises should match the service scope with the provider’s capabilities and monitor the credit ratings of their chosen providers regularly.
- Ongoing management and risk control: Companies should formalize the working relationship by signing written agreements and require service providers to submit complete work papers and tax documentation.
In conclusion, the 2025 Tax Service Regulations represent a significant upgrade to China’s tax service regulatory framework, offering greater transparency and more intelligent tools to support the selection of qualified service providers. By centering on the credit code and dynamic supervision system, the new framework provides a closed-loop regulatory model that covers the full cycle of professional tax service activities.
For foreign enterprises, choosing providers with higher credit ratings can significantly reduce the risk of tax disputes resulting from agency errors and enhance overall compliance. By assessing providers holistically considering their TSC level, specific qualifications, and alignment with business needs, companies can establish a strong compliance foundation and reduce the risk of non-compliance.
About Dezan Shira & Associates: Dezan Shira & Associates assists foreign investors into China and has done so since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Haikou, Zhongshan, Shenzhen, and Hong Kong. We also have offices in Vietnam, Indonesia, Singapore, United States, Germany, Italy, India, and Dubai (UAE) and partner firms assisting foreign investors in The Philippines, Malaysia, Thailand, Bangladesh, and Australia. For assistance in China, please contact the firm at china@dezshira.com or visit our website at www.dezshira.com.
Disclaimer: The content of this article is for informational purposes only and should not be considered as professional advice.