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GUO WU YUAN LING [135] 1993.12.13
Article 1 All units and individuals engaged in the production,
subcontracting for processing or the importation of consumer goods
prescribed by these Regulations (hereinafter referred to as 'taxable
consumer goods') within the borders of the People's Republic of
China are taxpayers of Consumption Tax (hereinafter referred to
as 'taxpayers') and shall pay Consumption Tax in accordance with
these Regulations.
Article 2 The taxable items, tax rates (tax amounts) of
Consumption Tax shall be implemented in accordance with the "Consumption
Tax Taxable Items and Tax Rates (Tax Amounts) Table" attached
to these Regulations.
Any adjustments to the Consumption Tax taxable items, tax rates
(tax amounts) shall be determined by the State Council.
Article 3 Where taxpayers deal in taxable consumer goods
with different tax rates, the sales amounts and sales volumes for
the taxable consumer goods shall be accounted for separately. If
the sales amounts and volumes are not accounted for separately,
or if the taxable consumer goods subject to different tax rates
are combined into a whole set of consumer goods for sales, the higher
tax rate shall apply.
Article 4 Taxable consumer goods produced by the taxpayer
shall be subject to tax upon sales. For self-produced taxable consumer
goods for the taxpayer's own use in the continuous production of
taxable consumer goods, no tax shall be levied; tax shall be assessed
when the goods are transferred for other use.
Where taxable consumer goods are contracted processed, the tax
shall be collected and paid by the contractor upon delivery to the
taxpayer. Where contract processed taxable consumer goods are used
by the taxpayer for the continuous production of taxable consumer
goods, the tax paid can be credited in accordance with the regulations.
Imported taxable consumer goods shall be subject to tax upon import
declaration.
Article 5 Consumption Tax payable shall be calculated using
the ad valorem method or the specific value method. The formulas
for calculating the tax payable are as follows:
Using the ad valorem method to calculate tax payable amount of
tax = Sales amount x Tax rate.
Tax payable calculate using the specific value method amount of
tax = Sales volume x Tax amount per unit.
Where the sales amount of taxable consumer goods are calculated
in foreign currency, the taxable amounts shall be converted into
Renminbi according to the exchange rates prevailing in the foreign
exchange market.
Article 6 The "sales amount" as stipulated in Article
5 of these Regulations shall be the total price plus other costs
received by the taxpayer, from the purchasing party, for the taxable
consumer goods sold.
Article 7 Self-produced taxable consumer goods for the taxpayer's
own use and subject to tax in accordance with the stipulations of
Paragraph 1 in Article 4 of these Regulations, shall be assessed
according to the sales price of similar consumer goods produced
by the taxpayer. If the sales price of similar consumer goods is
not available, the tax shall be assessed according to the composite
assessable value. The formula for calculating the composite assessable
value is as follows:
Composite assessable value = (Cost + profit) % (1-Consumption Tax
rate)
Article 8 Contract processed Taxable consumer goods shall
be assessed according to the sales price of similar consumer goods
of the contractor. If the sales price of similar consumer goods
is not available, the tax shall be assessed according to the composite
assessable value. The formula for calculating the composite assessable
value is as follows:
Composite assessable value = (Cost of material + Processing fee)
% (1 - Consumption Tax rate)
Article 9 Where taxable consumer goods adopt the ad valorem
method for calculating tax payable, they shall be assessed according
to the composite assessable value. The formula for calculating the
composite assessable value is as follows:
Composite assessable value = (Customs dutiable value + Customs Duty)
% (1 - Consumption Tax rate)
Article 10 Where the taxpayer uses a price, in calculating
tax on taxable consumer goods, which is clearly too low and without
proper justification, the responsible tax authorities will determine
which price he will use in calculating tax.
Article 11 Where taxpayers export taxable consumer goods,
the Consumption Tax will not be levied, unless otherwise determined
by the State Council. The procedures for exemption of exported taxable
consumer goods shall be regulated by the State Administration for
Taxation.
Article 12 Consumption Tax shall be collected by the tax
authorities. Consumption Tax on the imported taxable consumer goods
shall be collected by the Customs Bureau on behalf of the tax authorities.
Where taxable consumer goods are brought or mailed into China by
individuals, the Consumption Tax shall be levied together with Customs
Duty. The detailed measures shall be formulated by the Tariff Policy
Committee of the State Council together with the relevant departments.
Article 13 Where taxpayers sell taxable consumer goods and
self-producing taxable consumer goods for their own use, unless
otherwise as determined by the State, they shall report and pay
tax to the local responsible tax authorities with jurisdiction over
the taxpayers.
Where taxable consumer goods are contract processed, the Consumption
Tax due shall be paid to the local responsible tax authorities where
the contractors are located.
Where taxable consumer goods are imported, the tax shall be reported
and paid by the importers or their agents to the customs offices
where the imports are declared.
Article 14 Time limits on payment of Consumption shall be
one day, three days, five days, ten days, fifteen days or one month.
The actual time limits of the taxpayers shall be separately determined
by the responsible tax authorities according to the amount of the
tax payable of the taxpayers; tax that cannot be assessed in fixed
time limits can be assessed on a transaction-by-transaction basis.
Taxpayers that adopt one month as their time limit shall report
and pay tax within ten days following the end of the period. If
a time limit of one day, three days, five days, ten days or fifteen
days is adopted, the tax shall be prepaid within five days following
the end of the period, and a monthly return shall be filed with
any balance of tax due settled within ten days from the first day
of the following month.
Article 15 Where taxpayers import taxable consumer goods,
they shall pay tax within seven days after the completion and issuance
of the tax payment certificates by the Customs Bureau.
Article 16 The collection and administration of Consumption
Tax shall be implemented in accordance with the relevant regulations
of the (Law of the People's Republic of China on Tax Collection
and Administration) and these Regulations.
Article 17 The collection of Consumption Tax from enterprises
with foreign investment and foreign enterprises shall be implemented
in accordance with the resolutions of the Standing Committee of
the National People's Congress.
Article 18 The present Regulations are interpreted by the
Ministry of Finance and the Detailed Rules are formulated by the
Ministry of Finance.
Article 19 These Regulations are effective as of January
1, 1994. The relevant regulations of the "State Council Concerning
Collection of Consumption Tax" in effect before the present
Regulations, are annulled at the same time.
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