Guangdong's enterprises with good tax credit records can enjoy incentive measures while those with bad records may face punishments, according to the ongoing annual evaluation of tax compliance for the 2016 fiscal year.

The evaluation, launched by the provincial tax authorities, will rate enterprises in four grades — A, B, C, D from good to bad.

Enterprises with a good rating can enjoy incentives in financing while directors from enterprises that shirk or fail to pay taxes may be banned from leaving the country.

During this year's evaluation, about 710,000 taxpayers will be rated, including enterprises with independent accounting system, sole proprietorship and partnership registered with the tax authorities before December 31, 2015.

Taxpayers’ information will be collected through a tax credit management system. Based on the information gathered, the system will automatically calculate scores of tax credit, which will be rated by the tax authorities after verification. 

In the follow-up management, the tax authorities will adopt classified services for and management of enterprises with different credit ratings. Those with a good rating will be given incentives in financing and the 3A-rated ones can enjoy green channel services in going through tax formalities. For taxpayers with a D rating, the authorities will strengthen management , evaluation and supervision.

(By Chris Wang, Louis Berney)