Issued by:    State Administration of Taxation, Supreme People's Court
Issue No.:    No. 24, 2025 of the Announcement of the State Administration of Taxation, the Supreme People's Court
Release Date:    November 27, 2025
Effective Date:    November 27, 2025
Links:    https://fgk.chinatax.gov.cn/zcfgk/c100012/c5245432/content.html

This Announcement aims to unify the standards of recognition between tax authorities and People's Courts regarding the same matters in enterprise bankruptcy proceedings. It also seeks to eliminate hidden barriers to the exit of bankrupt enterprises at the institutional level, thereby providing policy support for the smooth functioning of market circulation. Its key points are as follows:

1. Clarify the scope of tax-related claims that should be declared by tax authorities and the corresponding declaration rules: 

1) Tax-related claims declared separately with priority over ordinary bankruptcy claims: the taxes owed by the enterprise (including the education surcharge and local education surcharge), social insurance contributions;

2) Tax-related claims declared as ordinary bankruptcy claims: tax late payment and interest arising from special tax adjustments;

3) Tax-related claims subordinated to ordinary bankruptcy claims: late payment of social insurance contributions and fines. 

2. Clarify that the aforementioned tax-related claims shall be calculated and determined with the date of the People's Court's ruling to accept the bankruptcy application as the cutoff. And tax obligations that have arisen before the People's Court's ruling to accept the bankruptcy application but for which the statutory declaration period has not yet expired are deemed due, and the enterprise shall proceed with tax declaration.

3. Clarify that upon receiving the court ruling on the acceptance of the bankruptcy application and the administrator's appointment decision, the tax authority must, without requiring an application from the administrator, lift the property preservation measures and suspend compulsory enforcement measures.

4. Clarify the tax representation authority of the administrator, that is, where the administrator is responsible for administering the debtor’s property and business affairs, the administrator shall represent it in fulfilling all tax-related obligations during the bankruptcy proceedings.

5. Simplify the process for lifting abnormal status: After a bankrupt enterprise makes up tax filings for overdue non-filing acts and the tax authority issues a penalty decision, the enterprise's abnormal status shall be lifted immediately.

6. Clarify the classification of claims for newly incurred taxes and fees after the acceptance of bankruptcy. Among them, taxes and fees arising from the disposal of debtor’s assets shall constitute bankruptcy expenses, while those arising from continued operation shall constitute common benefit debts, both of which shall be paid at any time out of the debtor's assets.

7. Clarify that after lawful recovery by the tax authority, there remain outstanding tax late payment, fines, and interest pursuant to the reorganization plan or settlement agreement, such circumstances shall not affect the enterprise’s application for restoration of tax-and-fee payment credit and subsequent tax-and-fee payment credit evaluations, nor shall they affect the enterprise’s handling of tax-related matters such as migration and deregistration.

8. Streamline the tax deregistration process: Where an enterprise is adjudicated bankrupt by a ruling of the People's Court, and applies to the tax authority for tax deregistration with the People's Court’s ruling on the conclusion of the bankruptcy proceedings, the tax authority shall immediately issue a tax clearance document.