On December 6, 2019, the Measures for Payment Services for Intermediary Receipt of the State Treasury (Trial) (hereinafter referred to as the Measures) was released, which will take effect on January 6, 2020. Recently, officials from the People’s Bank of China (PBC) answered questions from the press on issues concerning the Measures.
1. What is the purpose for releasing the Measures?
With the rapid development of non-banking payment institutions, payers demand to pay tax and other budgetary revenues via these institutions. Meanwhile, non-banking payment institutions started to take part in intermediary receipt of the State Treasury in an innovative manner. Therefore, it is necessary to formulate regulations to regulate relevant businesses so as to eliminate potential risks. In addition, the deepening of the taxation administration system reform has, in practice, called for the release of relevant regulations, which could safeguard the legitimate rights and interests of payers while making it more convenient to make payment. The release of the Measures helps to regulate businesses of non-banking payment institutions, commercial banks and clearing institutions in providing payment services for intermediary receipt of the State Treasury, ensure the security of treasury funds, and safeguard the legitimate rights and interests of payers. It is significant not only for winning the tough battle of preventing and defusing major financial risks, but also for facilitating the people’s daily life.
2. What are the payment services for intermediary receipt of the State Treasury?
“Payment services for intermediary receipt of the State Treasury” herein refer to online payment services for intermediary receipt of budgetary revenue provided by non-banking payment institutions through the network that directly connects commercial banks or clearing institutions to the State Treasury. As the extension of traditional intermediary receipt of the State Treasury, such online payment services are targeted at personal bank settlement accounts.
3. Which non-banking payment institutions are eligible to provide payment services for intermediary receipt of the State Treasury?
Any non-banking payment institution that satisfies the following requirements is eligible to provide payment services for intermediary receipt of the State Treasury: It shall hold a Payment Business License issued by the PBC, and follow PBC regulations on the State Treasury and non-banking payment institution businesses, as well as the Measures. Besides, it shall be capable of providing necessary technical support and system improvement services relating to payment services for intermediary receipt of the State Treasury, authorized to provide online payment services through the Internet or mobile devices, rated as B grade or above in the past three years, and does not have any major violations of the laws and regulations.
4. What are the business modes for non-banking payment institutions to provide payment services for intermediary receipt of the State Treasury?
Payment services for intermediary receipt of the State Treasury have two business modes: First, payment services for intermediary receipt are provided by non-banking payment institutions that are connected with commercial banks via clearing institutions through the network that directly connects the commercial banks with the State Treasury. Second, such services are provided by non-banking payment institutions through the network that directly connects clearing institutions to the State Treasury.
5. Can payers use the “cash” or “balance” in the Applications of non-banking payment institutions to pay taxes?
To ensure that funds are securely and smoothly paid into the State Treasury, when non-banking payment institutions provide payment services for intermediary receipt of the State Treasury, funds should be directly deducted from the payer’s personal bank settlement account (bank card added to the Application) and directly transferred to the treasury account. No payment can be made with the “cash” or “balance” in the App.
6. Are non-banking payment institutions able to provide refund services?
Non-banking payment institutions can display refund information on the corresponding terminal interface in accordance with laws and regulations, but cannot provide refund services.
7. What if a non-banking payment institution provides payment services for intermediary receipt of the State Treasury in a business model inconsistent with the Measures?
Where a non-banking payment institution provided payment services for intermediary receipt of the State Treasury in a business model inconsistent with the Measures, its practices should be rectified according to the Measures within three months since its implementation.
8. How can payers be aware of the content of payment services when paying taxes via non-banking payment institutions?
When a payment is being made, non-banking payment institutions providing payment services for intermediary receipt of the State Treasury should clearly disclose the content of the payment services it provided to ensure that payers are informed of all the required information.
Attachment: Notice of the People’s Bank of China on Issuing the Measures for Payment Services for Intermediary Receipt of the State Treasury (Trial)
