Abstract

China’s tax administration has improved substantially over the past two decades in the face of major changes in the economy and the tax system (see Chapter 2). This has contributed importantly to a doubling of the tax-to-GDP ratio and the significant reduction in taxpayers’ compliance costs since the mid-1990s. As the State Administration of Taxation (SAT) formulates its modernization plan for 2016–20, this chapter examines the results and impacts of previous tax administration reforms, and identifies areas where further reforms are needed to sustain revenue collection and reduce compliance costs over the next five years.

Investing in Soft Infrastructure