Golden Tax Phase IV: Key Terms for Tax and Asset Planning (Part 2)

With Golden Tax Phase IV in operation, the tax authorities will hold far more of a company’s data, and monitoring becomes comprehensive and multi-dimensional.

What Golden Tax Phase IV does

1. Smart tax administration

Golden Tax Phase IV uses the electronic invoicing reform as its starting point and is driven by tax big data. It builds a complete system for collecting, connecting and aggregating tax and fee data, moving tax administration to a “smart” model.

Through intelligent data collection and efficient management, tax authorities can administer taxes more precisely and efficiently. Enforcement becomes controllable, results can be evaluated, misconduct can be investigated and responsibility can be traced.

2. Fully digital collection, administration and services

Issuing, transferring and verifying invoices are now fully digital. This significantly improves the efficiency and accuracy of invoice management and reduces the use of paper invoices.

The system offers a range of online services, such as online filing, tax assessment, tax enquiries and tax consultation. These make it much easier for taxpayers to handle all kinds of tax matters and lower their costs.

3. Risk management and precise oversight

Using big data, artificial intelligence and other advanced technology, the system scans and analyzes companies’ tax filing data, financial data and other information for risk in real time, identifying and flagging potential tax risks early.

A differentiated supervision strategy targets companies according to their risk level: high-risk companies receive close attention, while low-risk companies are managed with a lighter touch. This promotes fair competition in the market.

4. Wider scope and information sharing

Golden Tax Phase IV is not limited to tax. It also covers non-tax items such as social insurance and medical insurance contributions, giving more comprehensive oversight.

It has also set up close information-exchange arrangements with banks, market regulators, public security and customs. Data is compared in real time, making tax administration more efficient and accurate.

(To be continued)