After establishing a company, you must file corporate-level tax returns monthly on the Electronic Tax Bureau website and use the Electronic Tax Bureau’s Withholding Agent Application to withhold individual income tax from employees’ salaries.
Late Filing Results in Penalties
Failure to withhold and remit individual income tax on time incurs penalties. See 【牢板日记】有限责任公司需要每月代扣代缴个人所得税，否则罚款
Correct Filing but Incorrect Tax Category Also Incurs Penalties
Filing under an incorrect tax category also triggers penalties. Only “regular wages and salaries” are subject to mandatory withholding and remittance.
In January, instead of reporting wages, I incorrectly reported payments as “labor service remuneration.”
As a result, a rectification notice was issued in February:
What should you do? Locate the previous filing record and submit a correction:
Then, the processing result was issued: As this was the first offense, no penalty was imposed—please ensure accuracy next time!
Relevant Legal Provisions
Article 62: If a taxpayer fails to file a tax return or submit tax-related documents within the prescribed time limit, or if a withholding agent fails to submit the withholding/collecting tax report form and related materials to the tax authority within the prescribed time limit, the tax authority shall order rectification within a specified period and may impose a fine of up to RMB 2,000; for serious cases, the fine may range from RMB 2,000 to RMB 10,000.
https://www.gov.cn/banshi/2005-08/31/content_146791.htm