As a standard form for the government to raise fiscal revenue, taxation has characteristics that distinguish it from other forms of fiscal revenue. The characteristics of taxation can be summarized as compulsion, non-compensation and fixity.
The compulsoriness of taxation refers to that the state restricts the rights (power) and obligations of both tax collection and payment in accordance with laws and regulations based on its public power. Taxation is not voluntarily paid by the taxpayer according to personal will or taxed at the discretion of the tax authorities but taxed according to law. Article 56 of the Constitution of the PRC clearly stipulates that it is the obligation of citizens of the PRC to pay taxes in accordance with the law. Taxpayers must pay taxes in accordance with the law; otherwise, they will be sanctioned by law. The compulsoriness of taxation is mainly reflected in the process of tax collection.