China’s State Taxation Administration (STA) issued updated rules governing the publication of taxpayer arrears (Measures for the Announcement of Tax Arrears (Order No. 61)) on 26 November 2025. This marks the first major revision since 2004. The measures, which come into effect on 1 March 2026, repeal the 2005 trial version and are designed to strengthen enforcement, improve transparency and safeguard taxpayer rights.

Tax arrears for these purposes refers to taxes unpaid by the statutory or other deadline, including taxes due after filing a tax return or extended payment period, taxes assessed following inspections or audits, etc. Historically, the STA has published arrears information covering all types of taxes (but excluding surcharges, such as education surcharges, and late payment penalties) quarterly or semi-annually to encourage compliance. This information is published through various public channels, such as government websites and other media. In the past, this mechanism has proven effective to some extent in recovering arrears; hence, the updated rules are designed to enhance their impact by expanding the scope of publishable items, unifying the publication frequency and strengthening linkage with the tax credit system.

Highlights of Changes

The most important aspects of Announcement No. 61 are as follows:

Enhanced Protection of Taxpayers' Legitimate Rights

  • Pre-announcement Review: Taxpayers will receive draft announcement language for review. The announcement provides for a confirmation and objection period, during which the taxpayer will have three working days to confirm or object to the proposed data.
  • Objections: Authorities must verify objections within three working days and correct valid errors immediately.

Expanded Announcement Content

  • Inclusion of Surcharges: The scope of published announcements will be expanded to include education surcharges and local education surcharges.
  • Inclusion of Late Payment Penalties: Late payment penalties linked to paid-off arrears will be published but administrative fines will remain excluded from public announcements.
  • New Information: Announcements must specify the information including, but not limited to, the tax arrears period, payment due date, amount of the arrears and corresponding late payment surcharges, and type of identification documents (e.g. the company’s business license or a personal ID, etc.).

Centralised Announcement Authority

  • Authority to publish tax arrears details will be centralised at the county level or higher tax bureau (or its branch) where the arrears are registered. This unified approach will replace the current practice of tiered announcements based on the amount owed to ensure consistency and improve efficiency.

More Frequent Announcements

  • Announcements will be made monthly on a designated platform, a significant increase from the current quarterly or semi-annual schedule. This will enhance transparency and create more pressure for noncompliant taxpayers to correct their positions.

Standardized Channels and Query Services

  • Announcement Channel: The main platform for announcements will be the STA’s Administrative Law Enforcement Information Disclosure Platform. Additional channels include the e-tax bureau, local tax service offices and news media.
  • Enhanced Access: Provincial tax authorities will be required to provide online seach functions for all arrears notices, making the information more accessible to the public.

More Defined Scope of Announcements

  • The rules have been optimized to align with the Company Law and the Enterprise Bankruptcy Law by clearly excluding three specific scenarios in bankruptcy or restructuring proceedings from the public announcement practice:
    • Taxes recovered but not yet deposited into the treasury;
    • Arrears of enterprises that have been dissolved or deregistered after completing the liquidation process; and
    • Taxes not settled under court-approved restructuring or settlement plans.
  • In addition, disclosure exemptions have been added for situations involving state secrets or those otherwise not subject to public disclosure.

Improved Updating Mechanism

  • Timely Updates: Paid arrears or registration changes must be reflected in the following month's announcement. The updated rules do not explicitly state that a taxpayer’s identity and data should be removed from the public forum once arrears are settled, but under current practice, this is done.
  • Post-Announcement Corrections: The authorities must review any objections to published details, verify the source of the tax arrears details and report back to the taxpayer within five working days. If the objection is valid, the authorities must correct the information promptly or revoke the announcement.

Strengthened Credit Linkage Mechanism

  • Formal Linkage: The new rules formally establish a link between tax arrears announcements and the tax payment credit evaluation system. The credit evaluation system is a national platform the connects various government platforms and databases and other sources of information. According to the updated rules, the STA will link the publication of tax arrears with the tax payment credit system to enhance compliance. The link means that a taxpayer's record of published tax arrears will be integrated into the comprehensive assessment of their tax compliance credit rating. This information can directly affect the taxpayer's credit rating, which in turn may influence their eligibility for various incentives and/or government projects or their reputation.

BDO Insights

For taxpayers, the revised measures increase compliance pressure to comply also provide but stronger safeguards. Monthly announcements and the direct credit linkages heighten the consequences of nonpayment, while the new objection mechanisms offer formal channels to correct potential errors, reducing the risk of reputational damage from the publication of misleading or inaccurate information.

For the tax authorities, standardized procedures, unified channels, clarified responsibilities and digital workflows will improve efficiency and supervisory effectiveness.

Overall, these revisions aim to create a fairer competitive environment. Transparent timely information will help taxpayers assess counterparty risks, while public scrutiny will encourage voluntary compliance, strengthening trust in China’s tax ecosystem.