As a new tax collection and management method, tax credit rating aims to guide enterprises to consciously pay taxes honestly through the trustworthy incentive mechanism, and it is worth exploring whether it can play an effective governance role in tax avoidance. Taking the establishment of low-tax-rate nonlocal subsidiaries as the starting point, the study finds that tax credit rating can effectively exert the tax avoidance governance effect, which is manifested in that when the tax credit rating of the parent company of the group is rated as A, the proportion of establishing low-tax-rate nonlocal subsidiaries is significantly reduced. Mechanism testing shows that tax credit rating exerts the tax avoidance governance effect mainly by providing preferential convenience for enterprises and enhancing corporate reputation risk. Heterogeneity analysis shows that in the sample group with low regional social trust, low industrial economic status, and high product uniqueness, tax credit rating has a more significant effect on tax avoidance governance. This paper deepens the relevant research on tax credit rating to improve corporate tax compliance, and provides useful reference for tax authorities to carry out targeted anti-tax avoidance prevention and control work for group companies.