China's State Administration of Taxation has issued two announcements concerning a grading system with effect from 1 October 2014 to promote tax compliance. The system includes 4 grades, A, B, C and D. The grades are determined using a standard points system where tax compliance infractions will result in points being deducted.
Taxpayers with an A grade are eligible for certain benefits such as relaxed control on VAT invoices and expedited handling of tax issues. Taxpayers with lower grades…