The Ministry of Finance Circular of the Ministry of Finance on Printing and Distributing Rules for the Implementation of the Interim Regulations of the People’s CaiFaZi [1993] No.39 December 25, 1993 The ministries and directly subordinate institutions of the State Council, the people’s governments of various provinces, autonomous “Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Consumption Tax” is now issued to you, Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Consumption Tax Article 1 These Rules are formulated according to Article 18 of the Interim Regulations of the People’s Republic of China on Consumption Tax Article 2 Any “unit” mentioned in Article 1 of the Regulations means State-owned enterprises, collective-owned enterprises, private enterprises, Any “individual” mentioned in Article 1 of the Regulations means self- employers and other individuals. “Within the territory of the People’s Republic of China” in Article 1 of the Regulations is referred to the fact that all consumer Article 3 The taxable consumer goods listed in the “Table of Consumption Tax Items and Rates (Amount)” attached to the Regulations shall be For cigarettes, those sold at the prices of RMB780 or over for a box (50,000 cigarettes; the same below), the value-added tax should Article 4 “A taxpayer is engaged in more than one kind of taxable consumer goods” in Article 3 of the Regulations means that the taxpayer produces Article 5 “Selling the goods” as addressed in Article 4 of the Regulations means the paid transferred of the ownership of taxable consumer Article 6 “Goods for self-use to continuously produce other taxable consumer goods” in Article 4 of the Regulations mean direct materials that “Goods used for other purposes” mean taxable consumer goods used for producing non-taxable consumer goods, in construction projects, Article 7 “Taxable consumer goods consigned for processing” mentioned in Article 4 of the Regulations mean those taxable consumer goods that For taxable consumer goods sold directly after consigned processing, no collection of consumption tax shall be made. Article 8 According to Article 4 of the Regulations, times for paying consumption tax are as follows: 1. In selling taxable consumer goods, consumption tax shall be paid by the taxpayers in the following time limits: (1) A taxpayer who makes credit sales or installment sales shall pay tax on the day of payment collection as fixed in the sales contract. (2) A taxpayer who collects advances on sales shall pay tax on the day he delivers the taxable consumer goods. (3) A taxpayer who makes settlement through collection with the debtor’s acceptance and entrusts the bank for the collection shall pay (4) A taxpayer who adopts other ways of settlement shall pay tax on the day he receives the sales income or a voucher for the sales income. 2. When a taxpayer produces taxable consumer goods for self-use, he shall pay tax on the day he delivers them for use. 3. A taxpayer who commissions processing of taxable consumer goods shall pay tax on the day he takes the delivery of goods. 4. A taxpayer importing taxable consumer goods shall pay tax on the day of customs entry. Article 9 “Sales volume” mentioned in Article 5 of the Regulations means the amount of taxable consumer goods, specified as follows: 1. For taxable consumer goods for sales, it means the sales amount of the goods. 2. For taxable consumer goods produced for self-use, it means the amount of the goods delivered for use. 3. For taxable consumer goods commissioned for processing, it means the amount of goods the taxpayer recovers. 4. For importing taxable consumer goods, it means the amount of goods on which the Customs imposes import duty. Article 10 Measuring units for special taxable consumer goods are computed as: 1. beer: 1 tonne = 988 liters 2. yellow rice or millet wine: 1 tonne = 962 liters 3. petrol: 1 tonne = 1,388 liters 4. diesel oil: 1 tonne = 1,176 liters Article 11 According to Article 5 of the Regulations, if the taxpayer settles the accounts of the sales of taxable consumer goods in foreign Article 12 The “sales value” mentioned in Article 6 of the Regulations does not include the value-added tax imposed on the buyers. If the taxpayer Sales value of taxable consumer goods = Sales value including value- added tax !B (1 + value-added tax rate or collection rate) Article 13 When the tax on taxable consumer goods sold with package is calculated by the advalorem method, no matter whether the package is priced If the package is priced and sold with the taxable consumer goods while a guarantee deposit is collected at the same time and the Article 14 “Non-price charges” mentioned in Article 6 of the Regulations mean funds, raising-fund fees, returned profit, subsidies, penalty 1. Invoice of transportation fee issued by transportation department to the buyer. 2. Such invoices transferred to the buyer by the taxpayer. Other non-price charges, whether they make up part of the taxpayer’s income or not, shall be included in the sales value for computing Article 15 “Selling prices of similar consumer goods” mentioned in Articles 7 and 8 mean the selling prices of similar consumer goods sold in 1. The selling price is obviously too low without a proper reason. 2. There is no selling price. If there are no sales or sales are not completed in the month, the tax amount should be computed according to the selling prices of Article 16 The “cost” mentioned in Article 7 of the Regulations means the production cost of the taxable consumer goods. Article 17 The “profit” mentioned in Article 7 of the Regulations is computed according to the national averaged cost/profit rate, which shall Article 18 The “cost of materials” mentioned in Article 8 of the Regulations means the actual cost of the materials that the consignor provides The taxpayer who consigns for processing of taxable consumer goods must indicate the cost of materials in the processing contract Article 19 The “processing charges” mentioned in Article 8 of the Regulations mean all the charges the consignee receives from the consignor Article 20 The “dutiable price” mentioned in Article 9 of the Regulations means the taxable value fixed by the Customs. Article 21 According to Article 10 of the Regulations, the following organs are authorized to determine the taxable value of taxable consumer 1. The State Administration of Taxation shall fixed the taxable value of category (1) cigarettes and spirits distilled from grain. 2. Tax bureaus under the State Administration of Taxation shall fix the taxable value of other taxable consumer goods. 3. The Customs shall fix the taxable value of imported taxable consumer goods. Article 22 Taxable consumer goods “governed by regulations of the State Council” as mentioned in Article 11 of the Regulations indicate those Article 23 Whenever taxable consumer goods exported with a refund of consumption tax meet a shutdown by the customs or are reimported duty free But if such goods are directly exported by the taxpayer, the repayment of tax may be delayed upon an approval by the local taxation Article 24 If taxable consumer goods sold by the taxpayer are rejected by the buyer because of poor quality or other reasons, the taxpayer can Article 25 According to Article 13 of the Regulations, if a taxpayer sells or entrusts others to sell self-produced consumer taxable goods in If the headquarters and branches of the taxpayer are not located in the same county (city), the consumption tax should be paid at Article 26 These Rules shall be interpreted by the Ministry of Finance or by the State Administration of Taxation. Article 27 These Rules shall enter into force as of the date of promulgation. |
The Ministry of Finance
1993-12-25