The corporate taxpayer rating, a component of the China Social Credit System, evaluates the taxpaying behavior of corporate entities in China.  On the basis of taxpaying activity over the period, corporations are given a rating each April. Corporations are scored with an A, B, M, C, or D grade.  Grade A, the best score, means a score of 90 points and above, while Type D is the poorest rating, for scores below 40. Type M is reserved for new taxpayers.  In broad terms, corporations are graded on their honesty and transparency in their filings, as well as timeliness. Grade A taxpayers will be subject to streamlined administrative procedures, whereas Grade D taxpayers are subject to increased scrutiny in matters such as returns and refund applications.