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The State Council Decree of the State Council of the People’s Republic of China No. 135 Interim Regulations of the People’s Republic of China on Consumption Tax adopted by the 12th Executive Meeting of the State Council Premier of the State Council, Li Peng December 13, 1993 Interim Regulations of the People’s Republic of China on Consumption Tax Article 1 All units and individuals engaged in the production, the subcontracting for processing or the importation of items referred to as Article 2 The taxable items tax rates (tax amounts) of Consumption Tax shall be determined in accordance with the Table of Taxable Items and Any adjustments to the Consumption taxable items, tax rates (tax amounts) shall be determined by the State Council. Article 3 For taxpayers dealing in taxable consumer goods with different tax rates, the sales amounts and sales volumes for the taxable consumer Article 4 Taxable consumer goods produced by the taxpayer shall be subject to tax upon sales. For self-produced taxable consumer goods for the For taxable consumer goods subcontracted for processing, the tax shall be collected and paid by the subcontractor upon delivery to Imported taxable consumer goods shall be subject to tax upon import declaration. Article 5 The computation of tax payable for Consumption Tax shall follow either the rate-on-value or the amount-on-volume method. The formulas The tax payable computed under the rate-on-value method = Sales Amount * Tax Rate The tax payable computed under the amount-on-volume method = Sales Volume * Tax Amount Per Unit For taxable consumer goods sold by taxpayers where the sales amounts are computed in foreign currencies, the taxable amounts shall Article 6 The “sales amount” as stipulated in Article 5 of these Regulations shall be the total consideration and other charges receivable Article 7 Self-produced taxable consumer goods for the taxpayer’s own use that shall be subject to tax in accordance with the stipulations of Composite assessable value = (Cost + Profit)/(1 – Consumption Tax Rate) Article 8 Taxable consumer goods subcontracted for processing shall be assessed according to the selling price of similar consumer goods of Composite assessable value = (Cost of Material + Processing Fee)/(1 – Consumption Tax Rate) Article 9 Imported taxable consumer goods, which adopt the rate-on-value method in computing the tax payable shall be assessed according to Composite assessable value = (Customs Dutiable Value + Customs Duty)/ (1 – Consumption Tax Rate) Article 10 Where the taxable value of the taxable consumer goods of the taxpayer is obviously low and without proper justification, the taxable Article 11 Taxpayers exporting taxable consumer goods shall be exempt from the Consumption Tax, except as otherwise determined by the State Council. Article 12 Consumption Tax shall be collected by the tax authorities. Consumption Tax on the importation of taxable consumer goods shall be collected Consumption Tax on taxable consumer goods brought or mailed into China by individuals shall be levied together with Customs Duty. Article 13 Taxpayers selling taxable consumer goods and self-produced taxable consumer goods for their own use, except as otherwise determined For taxable consumer goods subcontracted for processing, the Consumption Tax due shall be paid to the local competent tax authorities For imported taxable consumer goods, the tax shall be reported and paid by the importers or their agents to the customs offices where Article 14 The Consumption Tax assessable period shall be one day, three days, five days, 10 days, 15 days or one month. The actual assessable Taxpayers that adopt one month as an assessable period shall report and pay tax within 10 days following the end of the period. If Article 15 Taxpayers importing taxable consumer goods shall pay tax within seven days after the completion and issuance of the tax payment certificates Article 16 The collection and administration of Consumption Tax shall be conducted in accordance with the relevant regulations of the Law of Article 17 The collection of Consumption Tax from foreign investment enterprises and foreign enterprises shall be conducted in accordance with Article 18 The Ministry of Finance shall be responsible for the interpretation of these Regulations and for the formulation of the Rules for Article 19 These Regulations shall enter into force as of January 1, 1994. The relevant provisions of the State Council regarding the collection htm/e02811.htm Attachment: Consumption Taxable Items and Tax Rates (Tax Amounts) Table
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