Industrial Bank Wins the Evaluation of Withholding Business for Non-taxable Income on Behalf of Central Treasury

Recently, the results of the Ministry of Finance 2016 Annual Comprehensive Evaluation of Banks Acting Withholding Business for Non-taxable Income of Central Treasury have been released, in which the Industrial Bank (IB) ranked first among the same kind of agent banks by virtue of its diversified & universal payment methods, as well as high-level and strict customer service, and other advantages.

The fiscal agent business has always been the unique service of IB, which successfully won the bid for the qualification of central financial non-tax income withholding business agent at the end of 2014. It is one of the national joint-stock commercial banks with the largest number of, the most comprehensive and extensive coverage of financial agent businesses. By the end of 2016, the bank had acquired 442 financial agency qualifications in central, provincial, municipal and district level, including 70 qualifications at provincial level, 189 municipal level and 183 district level.

Up to now, the bank has established agency partnership with fiscal supervision office of some provinces (municipalities directly under the central government) including Beijing, Shanghai, Shandong and Chongqing and so on, as well as central ministries and government agencies such as the Ministry of Human Resources and Social Security, Ministry of Industry & Information Technology, Ministry of Public security, Ministry of Land & Resources, and General Administration of Customs, etc. It successively offers withholding agency service to nearly one hundred of key enterprises and public institutions such as State Grid Corporation of China (SGCC) and China Railway Corporation, forming a central financial non-tax income tax payment system covering financial department, the collection unit, the payment unit and the payer in a comprehensive manner.

According to statistics, the bank has successfully accepted 304 counts of withholding business in 2016, totaling RMB 11.06 billion and is well accepted by most of the payers, including Ministry of Finance and other central departments and government agencies.

The agency of withholding on-taxable income of central treasury refers to the non-taxable income collected by the commercial bank as an agency, including administrative fees, government funds, paid income of state-owned resources, state-owned capital operating income, public welfare funds from lottery, confiscated income, donation income received in the name of the government, the collective income collected by competent authorities and the interest income arising from the government's financial funds, etc. Non-tax revenue is an important source of central financial income, and is also a significant form of national participation in the distribution of national income and the tool of implementing macro-control. According to statistics, China's non-tax revenue reached RMB 2.9198 trillion in 2016, with a year-on-year growth of 5%. During the period of "the 13th Five-Year Plan", the development of China's financial business is aimed at actively building a modern service-oriented financial institution, and putting forward higher demands for the overall service level and service capability of the agent bank focusing on the security, liquidity and profit management of treasury funds.

IB has always been adhering to the customer-centric service concept, relies on years of accumulated experience in financial payment business agent, and constantly upgrades the central non-tax revenue collection business system to ensure the security, accuracy and timeliness of funds remittance & transfer and information transmission. Taking the advantage of a wide range of settlement products, the bank provides diversified and convenient approaches to pay the fees to payers, so as to improve the efficiency of central finance non-tax payment business transaction, and continuously enhance the service level of agent collection business.

In recent years, IB has constantly strengthened the service innovation of financial products, committing to creating an intelligent agent financial services process integrating demand search, product customization, consulting & complaints acceptance and remote control, so as to improve customer transaction chain, achieve exclusive customization according to customers' demands and integrate various payment & settlement products. It aims at forming a comprehensive financial service system covering settlement, money management, financing, capital transactions and so on through the innovative combination of financial derivatives and other financing and liability products.

From this year, the bank has continued to maintain good growth in the collection of central financial non-tax revenue. As of the end of May, the amount of collecting central financial non-tax revenue it has completed came up to RMB 7.408 billion, and the volume of its business has already reached the 11 times of that in 2016. It continues to keep its leading position in the industry.