In 2016, the implementation of the Third Phase of the Golden Tax Project (Golden Tax III) in Beijing, Shanghai, Shenzhen and Guangdong, etc. has been completed and it is entering into an accelerated stage to cover the other locations in China. Under the plan of the State Administration of Taxation (SAT), the Golden Tax III will be rolled out nationwide within 2016.
The Golden Tax III aims to achieve consistent tax administration backed by information technology and processing of tax data in a highly efficient manner nationwide. As such, it will not only transform the tax authority's operating system, but will consequently alter taxpayer's tax compliance procedures as well. Upon the implementation, an improved system and optimised procedure will help the tax authorities to tighten their administration of taxpayers. The Golden Tax III can automatically detect tax risks which were being ignored before and will result in penalty and impact the taxpayer's credit on tax collection.
It is recommended that taxpayers should start by sorting out weaknesses in their internal control system, improving invoice administration and enhancing tax compliance in order to be well prepared for the upcoming new challenges brought by the Golden Tax III.