Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.
Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers. Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.
Article 31 Taxpayers and withholding agents shall pay or remit taxes within the time limit prescribed by laws and administrative regulations or determined by tax authorities in accordance with the provisions of laws and administrative regulations. Taxpayers who are unable to pay taxes on time due to special difficulties may, with the approval of the State Taxation Bureau and the Local Taxation Bureau of provinces, autonomous regions and municipalities directly under the Central Government, postpone paying taxes for a maximum of three months.
Article 32 If a taxpayer fails to pay the tax within the prescribed time limit and a withholding agent fails to pay the tax within the prescribed time limit, the tax authorities shall order him to pay the tax within the prescribed time limit, and impose a late fee of 0.5% of the overdue tax on a daily basis from the date of overdue payment.