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PROVISIONAL REGULATIONS ON VALUE-ADDED

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-12-13 Effective Date  1994-01-01  


Provisional Regulations of the People’s Republic of China on Value-added



Tax

(Adopted at the 12nd Executive Meeting of the State Council on November

26, 1993, promulgated in Decree No.134 by the State Council of the People’s
Republic of China on December 13, 1993 and effective as of January 1, 1994)

    Article 1  All units and individuals engaged in the sales of goods,
provision of processing, repairs and replacement services, and the importation
of goods within the territory of the People’s Republic of China are taxpayers
of Value-Added Tax (hereinafter referred to as ‘taxpayers’), and shall pay VAT
in accordance with these Regulations.

    Article 2  VAT rates:

    (1) For taxpayers selling or importing goods, other than those stipulated
in items (2) and (3) of this Article, the tax rate shall be 17%.

    (2) For taxpayers selling or importing the following goods, the tax rate
shall be 13%:

    i. Food grains, edible vegetable oils;

    ii. Tap water, heating, air conditioning, hot water, coal gas, liquefied
petroleum gas, natural gas, methane gas, coal/charcoal products for household
use;

    iii. Books, newspapers, magazines;

    iv. Feeds, chemical fertilizers, agricultural chemicals, agricultural
machinery and covering plastic film for farming;

    v. Other goods as regulated by the State Council.

    (3) For taxpayers exporting goods, the tax rate shall be 0%, except as
otherwise stipulated by the State Council.

    (4) For taxpayers providing processing, repairs and replacement services
(hereinafter referred to as ‘taxable services’), the tax rate shall be 17%.

    Any adjustments to the tax rates shall be determined by the State Council.

    Article 3  For taxpayers dealing in goods or providing taxable services
with different tax rates, the sales amounts for goods or taxable services with
different tax rates shall be accounted for separately. If the sales amounts
have not been accounted for separately, the higher tax rate shall apply.

    Article 4  Except as stipulated in Article 13 of these Regulations, for
taxpayers engaged in the sales of goods or the provision of taxable services
(hereinafer referred to as ‘selling goods or taxable services’), the tax
payable shall be the balance of output tax for the period after deducting the
input tax for the period. The formula for computing the tax payable is as
follows:

    Tax payable = Output tax payable for the period – Input tax for the period

    If the output tax for the period is less than and insufficient to offset
against the input tax for the period, the excess input tax can be carried
forword for set-off in the following periods.

    Article 5  For taxpayers selling goods or taxable services, the output tax
shall be the VAT payable calculated based on the sales amounts and the tax
rates prescribed in Article 2 of these Regulations and collected from the
purchasers. The formula for computing the output tax is as follows:

    Output tax = Sales amount * Tax rate

    Article 6  The sales amount shall be the total consideration and all other
charges receivable from the purchasers by the taxpayer selling goods or
taxable services, but excluding the output tax collectible.

    The sales amount shall be computed in Renminbi. The sales amount of the
taxpayer settled in foreign currencies shall be converted into Renminbi
according to exchange rate prevailing in the foreign exchange market.

    Article 7  Where the price used by the taxpayer in selling goods or
taxable services is obviously low and without proper justification, the sales
amount shall be determined by the competent tax authourties.

    Article 8  For taxpayers who purchase goods or receive taxable services
(hereinafter referred to as ‘purchasing goods or taxable services’), VAT paid
or borne shall be the input tax.

    The amount of input tax that can be credited against the output tax, other
than the situations specified in Paragraph 3 of this Article, shall be
restricted to the amount of VAT payable as indicated on the following VAT
credit document:

    (1) VAT indicated in the special VAT invoices obtained from the sellers;

    (2) VAT indicated on the tax payment receipts obtained from the customs
office.

    The creditable input tax for the purchasing of tax exempt agricultural
products is calculated based on a deemed deduction rate at 10% on the actual
purchasing price. The formula for calculating the input tax is as follows:

    Input tax = Purchasing price * Deduction rate

    Article 9  Where taxpayers purchasing goods or taxable services have not
obtained and kept the VAT credit document in accordance with the regulations,
or the VAT payable and other relevant items in accordance with the regulations
are not indicated on the VAT credit document, no input tax shall be credited
against the output tax.

    Article 10  Input tax on the following items shall not be credited against
the output tax:

    (1) Fixed assets purchased;

    (2) Goods purchased or taxable services used for non-taxable items;

    (3) Goods purchased or taxable servides used for tax exempt items;

    (4) Goods purchased or taxable services used for group welfare or personal
consumption;

    (5) Abnormal losses of Goods purchased;

    (6) Goods purchased or taxable services consumed in the production of
work-in-progress or finished goods which suffer abnormal losses.

    Article 11  Small-scale taxpayers engaged in selling goods or taxable
services shall use a simplified method for calculating the tax payable.

    The criteria for small-scale taxpayers shall be regulated by the Ministry
of Finance.

    Article 12  The rate leviable on the small-scale taxpayers selling goods
or taxable services shall be 6%.

    Any adjustment to the leviable rate shall be determined by the State
Council.

    Article 13  For small-scale taxpayers selling goods or taxable services,
the tax payable shall be calculated based on the sales amount and the leviable
rate prescribed in Article 12 of these Regulations. No input tax shall be
creditable. The formula for calculating the tax payable is as follows:

    Tax payable = Sales amount * leviable rate

    The sales amount shall be determined in accordance with the stipulations
of Article 6 and Article 7 of these Regulations.

    Article 14  Small-scale taxpayers with sound accounting who can provide
accurate taxation information may, upon the approval of the competent tax
authorities, not be treated as small-scale taxpayers. The tax payable shall be
conmputed pursuant to the relevant stipulations of these Regulations.

    Article 15  For taxpayers importing goods, tax payable shall be computed
based on the composite assessable price and the tax rates prescribed in
Article 2 of these Regulations. No tax will be credited. The formulas for
computing the composite assessable price and the tax payable are as follows:

    Composite assessable price

           = Customs dutiable value + Customs Duty + Consumption Tax

    Tax payable = Composite assessable price * Tax rate

    Article 16  The following items shall be exempt from VAT:

    (1) Self-produced agricultural products sold by agricultural producers;

    (2) Contraceptive medicines and devices;

    (3) Antique books;

    (4) Importation of instruments and equipment directly used in scientific
research, experiment and education;

    (5) Importation of materials and equipment from foreign governments and
international organizations as assistance free of charge;

    (6) Equipment and machinery required to be imported under contract
processing, contract assembly and compensation trade;

    (7) Articles imported directly by organizations for the disabled for
special use by the disabled;

    (8) Sale of goods which have been used by the sellers.

    Except as stipulated in the above paragraph, the VAT exemption and
reduction items shall be regulated by the State Council. Local Governments or
departments shall not regulate any tax exemption or reduction items.

    Article 17  For taxpayers engaged in tax exempt or tax reduced items, the
sales amounts for tax exempt or tax reduced items shall be accounted for
separately. If the sales amounts have not been separately accounted for, no
exemption or reduction is allowed.

    Article 18  For taxpayers whose sales amounts have not reached the VAT
minimum threshold stipulated by the Ministry of Finance, the VAT shall be
exempt.

    Article 19  The time at which a liability to VAT arises is as follows:

    (1) For sales of goods or taxable services, it is the date on which the
sales sum is received or the documented evidence of right to collect the sales
sum is obtained.

    (2) For importation of goods, it is the date of import declaration.

    Article 20  VAT shall be collected by the tax authorities. VAT on the
importation of goods shall be collected by the customs office on behalf of the
tax authorities.

    VAT on self-used articles brought or mailed into China by individuals
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 21  Taxpayers selling goods or taxable services shall issue
special VAT invoices to the purchasers. Sales amounts and output tax shall be
separately indicated in the special VAT invoices.

    Under one of the following situations, the invoice to be issued shall be
an ordinary invoice rather than the special VAT invoice:

    (1) Sale of goods or taxable services to consumers;

    (2) Sale of VAT exempt goods;

    (3) Sale of goods or taxable services by small-scale taxpayers.

    Article 22  The place for the payment of VAT is as follows:

    (1) Businesses with a fixed establishment shall report and pay tax with
the local competent tax authorities where the establishment is located. If the
head office and branch are not situated in the same county (or city), they
shall report and pay tax separately with their respective local competent tax
authorities. The head office may, upon the approval of the State
Administration for Taxation or its authorised tax authorities, report and pay
tax on a consolidated basis with the local competent tax authorities where the
head office is located.

    (2) Businesses with a fixed establishment selling goods in a different
county (or city) shall apply for the issuance of an outbound business
activities tax administration certificate from the local competent tax
authorities where the establishment is located and shall report and pay tax
with the local competent tax authorities where the establishmnent is located.
Businesses selling goods and taxable services in a different county (or city)
without the outbound business activities tax administration certificate issued
by the local competent tax authorities where the establishment is located,
shall report and pay tax with the local competent tax authorities where the
sales activities take place. The local competent tax authorities where the
establishment is located shall collect the overdue tax which has not been
reported and paid to the local competent tax authorities where the sales
activities take place.

    (3) Businesses without a fixed base selling goods or taxable services
shall report and pay tax with the local competent tax authorities where the
sales activities take place.

    (4) For importation of goods, the importer or his agent shall report and
pay tax to the customs office where the imports are declared.

    Article 23  The VAT assessable period shall be one day, three days, five
days, ten days, fifteen days or one month. The actual assessable period of the
taxpayer shall be determined by the competent tax authorities according to the
magnitude of the tax payable of the taxpayer; tax that cannot be assessed in
regular periods may be assessed on a transaction-by-transaction basis.

    Taxpayers that adopt one month as an assessable period shall report and
pay tax within ten days following the end of the period. If an assessable
period 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 24  Taxpayers importing goods shall pay tax within seven days
after the issuance of the tax payment certificates by the customs office.

    Article 25  Taxpayers exporting goods with the appliable 0% tax rate
shall, upon completion of export procedures with the customs office, apply for
the tax refund on those export goods to the tax authorities on a monthly basis
based on such relevant documents as the export declaration document. The
detailed measures shall be formulated by the State Administration for
Taxation.

    Where the return of goods or the withdrawal of the customs declaration
occurs after the completion of the tax refund on the export goods, the
taxpayer shall repay the tax refunded according to the laws.

    Article 26  The collection and administration of VAT shall be conducted in
accordance with the relevant provisions of the Law of the People’s Republic of
China on Tax Collection and Administration and these Regulations.

    Article 27  The collection of VAT from foreign investment enterprises and
foreign enterprises shall be conducted in accordance with the resolutions of
the Standing Committee of the National People’s Congress.

    Article 28  The Ministry of Finance shall be responsible for the
interpretation of these Regulations and for the formulation of the rules for
the implementation of these Regulations.

    Article 29  These Regulations shall come into effect from January 1, 1994.
The Draft Regulations of the People’s Republic of China on Value-Added Tax and
the Draft Regulations of the People’s Republic of China on Product Tax
promulgated by the State Council on September 18, 1984 shall be superseded on
the same date.





CIRCULAR OF THE STATE COUNCIL ON BANNING THE TRADE OF RHINOCEROS HORN AND TIGER BONE

Category  FOREIGN TRADE Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1993-05-29 Effective Date  1993-05-29  


Circular of the State Council on Banning the Trade of Rhinoceros Horn and Tiger Bone



(May 29, 1993)

    Rhinoceros and tiger are the wild animals on the brink of
extinction under the special protection in the world. They are
listed into the species of Annex I of the Convention on
International Trade of Species of Wildlife on the Brink of
Extinction signed by our country. In accordance with the relevant
stipulations of the Law of the People’s Republic of China on
Protection of Wildlife, of the Regulations for the Implementation
of the People’s Republic of China on the Protection of Terrestrial
Wildlife and of the Convention on International Trade of Species
of Wildlife on the Brink of Extinction, this Circular is
issued for the purpose of protecting the rare species in the world
and reiterating the banning of all trade activities of rhinoceros
horn and tiger bone:

    1. It is strictly forbidden to import or export rhinoceros horn
or tiger bone (including those identifiable parts or medicine, crafts
or other such products containing their ingredients, the same below).
No unit or individual may transport, carry or send by post the
rhinoceros horn or tiger bone into or out of the territory. In the
case of using with the indication in characters “rhinoceros horn”
and “tiger bone” on the packing of commodities, the commodities
shall be treated as those containing the rhinoceros horn and tiger
bone without exception.

    2. Selling, purchasing, transporting, carrying and sending by
post the rhinoceros horn and tiger bone shall be prohibited. With
respect to reserve of rhinoceros horn and tiger bone, the unit
concerned must check up promptly, register and seal up for
safekeeping again, and take care of them appropriately. The owner
thereof shall make an accurate declaration to the competent
departments of forestry administration at provincial level or their
designated unit. The competent departments of forestry
administration at provincial level or their designated unit must
compile the information on the reserve of rhinoceros horn and
tiger bone into book form, and submit it to the State Office for the
Administration of the Import and Export of Species on the Brink of
Extinction for the record.

    3. The medicinal standards for rhinoceros horn and tiger bone
shall be abolished. From now on, rhinoceros horn or tiger bone
shall not be used in making medicine anymore. With respect to the
produced medicaments with set prescription of traditional Chinese
medicine containing the ingredient of rhinoceros horn and tiger
bone, they must be sealed within six months as of the date of the
promulgation of this Circular and be prohibited from selling.

    4. The state encourages the medicinal development and research
for the substitute of rhinoceros horn and tiger bone, and
actively propagate and spread the researching achievement. Where
using rhinoceros horn and tiger bone is necessary for studying of
substitute of rhinoceros horn and tiger bone or other special
purposes, the unit concerned must be approved by the Ministry of
Public Health in advance, submit to the Ministry of Forestry for
file, and be subject to the supervision and inspection by the
competent departments of forestry administration in localities.

    5. Anyone who violates the stipulations of this Circular to sell,
purchase, transport, carry and send by post rhinoceros horn and
tiger bone, shall be investigated and handled by the State
Administrative Department for Industry and Commerce and the
Customs of the People’s Republic of China according to law. If
constituting a crime of speculation or smuggling, the violator
shall be prosecuted for the criminal liability according to law
by the judicial organ. The rhinoceros horn and tiger bone thus
confiscated shall, in accordance with the relevant provisions, be
transmitted to the competent departments of forestry administration
above the county level in localities to be disposed of.

    6. This Circular shall enter into force on the date of
promulgation. In the event of any conflicts between this
Circular and other relevant provisions promulgated before, this
Circular shall prevail.





CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON THE QUESTIONS CONCERNING THE TAXATION OF PROFITS FROM THE TRANSFER OF STOCKS (STOCK RIGHTS) AND DIVIDEND INCOME OF ENTERPRISES WITH FOREIGN INVESTMENT, FOREIGN ENTERPRISES AND INDIVIDUAL FOREIGNERS

The State Administration of Taxation

Circular of the State Administration of Taxation on the Questions Concerning the Taxation of Profits from the Transfer of Stocks (Stock
Rights) and Dividend Income of Enterprises with Foreign Investment, Foreign Enterprises and Individual Foreigners

GuoShuiFa [1993] No.045

July 21,1993

The tax bureaus of various provinces, municipalities directly under the Central Government and autonomous regions, the tax bureaus
of various municipalities separately listed on the State plan and various sub-bureaus of the Offshore Oil Taxation Administration:

In accordance with related stipulations on the experimentation with the shareholding system, the state permits some pilot enterprises
to issue domestic special shares (referred to as B-shares for short) in Renminbi and shares issued and 1isted abroad (referred to
as overseas shares for short), we hereby clarify the question concerning tax on the profits earned by enterprises with foreign investment,
foreign enterprises and individual foreigners from the transfer of the above-mentioned stocks (stock rights) which they hold and
from the incomes gained from dividends (bonuses):

I.

Profits earned from the transfer of stocks (stock rights)

1.

The net income earned by enterprises with foreign investment from the transfer of stocks or stock rights, as well as the net incomes
gained by foreign enterprises through the offices and sites they set up within China from the transfer of China’s domestic enterprise
shares which they hold shall be charged into the amount of the enterprise’s current taxable incomes and income tax shall be paid.
The net loss caused by the transaction of the above-mentioned stocks may eat up the amount of the enterprise’s current taxable income.

2.

The net profit earned by a foreign enterprise from the transfer of B-shares issued by China’s domestic enterprises and overseas stocks
held not by its offices and sites set up within China and the net incomes gained by individual foreigners from the transfer of Be-shares
issued by China’s domestic enterprises and overseas stocks are temporarily exempt from income tax.

3.

A foreign enterprise and individual foreigner, who earns income from the transfer of the stock rights of an enterprise with foreign
investment within China that exceeds the income gained from the transfer of part of the amount of his investment, shall still pay
withholding income tax or individual income tax at a 20 percent rate in accordance with the stipulations of the Documents of the
Ministry of Finance (87) coded Cai Shui Wai Zi No. 033 and the Document of the Ministry of Finance (84) coded Cai Shui Zi No.114.

II.

Income from dividends

1.

In accordance with the stipulations of Article 19 of the Income Tax Law of the People’s Republic of China on Enterprises with Foreign
Investment and Foreign Enterprises and the stipulations of Paragraph 2 of Article 5 of the Rules for the Implementation of the Individual
Income Tax Law of the People’s Republic of China, the profits (dividends) gained by foreign investors from the enterprises with foreign
investment and the dividends and bonuses gained by individual foreigners from the Chinese-foreign equity joint ventures are exempt
from income tax.

2.

The income from dividends (bonuses) gained by foreign enterprises and individual foreigners who hold B-shares or overseas shares from
China’s domestic enterprises which issue B-shares or overseas shares, is temporarily exempt from enterprise income tax and individual
income tax.

III.

This Circular shall enter into force as of the day of receipt of the document.



 
The State Administration of Taxation
1993-07-21

 






AMENDMENT TO THE CONSTITUTION OF THE PEOPLE’S REPUBLIC OF CHINA 1999

Amendment to the Constitution of the People’s Republic of China

(Adopted at the Second Session of the Ninth National People’s Congress and promulgated for implementation by the
Announcement of the National People’s Congress on March 15, 1999) 

Article 12  The seventh paragraph of the Preamble to the Constitution, which reads, “The victory in China’s New-Democratic Revolution
and the successes in its socialist cause have been achieved by the Chinese people of all nationalities, under the leadership of the
Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, by upholding truth, correcting errors and surmounting
numerous difficulties and hardships. China is at the primary stage of socialism. The basic task of the nation is to concentrate its
effort on socialist modernization in line with the theory of building socialism with Chinese characteristics. Under the leadership
of the Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, the Chinese people of all nationalities
will continue to adhere to the people’s democratic dictatorship and the socialist road, persevere in reform and opening to the outside
world, steadily improve socialist institutions, develop socialist democracy, improve the socialist legal system and work hard and
self-reliantly to modernize the country’s industry, agriculture, national defence and science and technology step by step to turn
China into a socialist country that is prosperous, powerful, democratic and culturally advanced”, is revised to read, “The victory
in China’s New-Democratic Revolution and the successes in its socialist cause have been achieved by the Chinese people of all nationalities,
under the leadership of the Communist Party of China and the guidance of Marxism-Leninism and Mao Zedong Thought, by upholding truth,
correcting errors and surmounting numerous difficulties and hardships. China will be in the primary stage of socialism for a long
time to come. The basic task of the nation is to concentrate its effort on socialist modernization along the road of building socialism
with Chinese characteristics. Under the leadership of the Communist Party of China and the guidance of Marxism-Leninism, Mao Zedong
Thought and Deng Xiaoping Theory, the Chinese people of all nationalities will continue to adhere to the people’s democratic dictatorship
and the socialist road, persevere in reform and opening to the outside world, steadily improve socialist institutions, develop the
socialist market economy, develop socialist democracy, improve the socialist legal system and work hard and self-reliantly to modernize
the country’s industry, agriculture, national defence and science and technology step by step to turn China into a socialist country
that is prosperous, powerful, democratic and culturally advanced.” 

 

Article 13  A new paragraph is added to Article 5 of the Constitution as the first paragraph, which reads, “The People’s Republic
of China governs the country according to law and makes it a socialist country under rule of law.”      

Article 14  Article 6 of the Constitution, which reads, “The basis of the socialist economic system of the People’s Republic
of China is socialist public ownership of the means of production, namely, ownership by the whole people and collective ownership
by the working people.” “The system of socialist public ownership supersedes the system of exploitation of man by man; it applies
the principle of ‘from each according to his ability, to each according to his work'”, is revised to read, “The basis of the socialist
economic system of the People’s Republic of China is socialist public ownership of the means of production, namely, ownership by
the whole people and collective ownership by the working people. The system of socialist public ownership supersedes the system of
exploitation of man by man; it applies the principle of ‘from each according to his ability, to each according to his work’.” “In
the primary stage of socialism, the State upholds the basic economic system in which the public ownership is dominant and diverse
forms of ownership develop side by side and keeps to the distribution system in which distribution according to work is dominant
and diverse modes of distribution coexist.”  

Article 15  The first paragraph of Article 8 of the Constitution, which reads, “In rural areas the responsibility system, the
main form of which is household contract that links remuneration to output, and other forms of cooperative economy, such as producers’,
supply and marketing, credit and consumers’ cooperatives, belong to the sector of socialist economy under collective ownership by
the working people. Working people who are members of rural economic collectives have the right, within the limits prescribed by
law, to farm plots of cropland and hilly land allotted for their private use, engage in household sideline production and raise privately
owned livestock”, is revised to read, “The rural collective economic organizations apply the dual operation system characterized
by the combination of centralized operation with decentralized operation on the basis of operation by households under a contract.
In rural areas, all forms of cooperative economy, such as producers’, supply and marketing, credit and consumers’ cooperatives, belong
to the sector of socialist economy under collective ownership by the working people. Working people who are members of rural economic
collectives have the right, within the limits prescribed by law, to farm plots of cropland and hilly land allotted for their private
use, engage in household sideline production and raise privately owned livestock.” 

Article 16  Article 11 of the Constitution, which reads, “The individual economy of urban and rural working people, operating
within the limits prescribed by law, is a complement to the socialist public economy. The State protects the lawful rights and interests
of the individual economy.” “The State guides, assists and supervises the individual economy by administrative control.” “The State
permits the private sector of the economy to exist and develop within the limits prescribed by law. The private sector of the economy
is a complement to the socialist public sector of the economy. The State protects the lawful rights and interests of the private
sector of the economy, and exercises guidance, supervision and control over the private sector of the economy”, is revised to read,
“The non-public sectors of the economy such as the individual and private sectors of the economy, operating within the limits prescribed
by law, constitute an important component of the socialist market economy.” ” The State protects the lawful rights and interests
of the individual and private sectors of the economy, and exercises guidance, supervision and control over the individual and the
private sectors of the economy.” 

Article 17  Article 28 of the Constitution, which reads, “The State maintains public order and suppresses treasonable and other
counter-revolutionary activities; it penalizes criminal activities that endanger public security and disrupt the socialist economy
as well as other criminal activities; and it punishes and reforms criminals”, is revised to read, “The State maintains public order
and suppresses treasonable and other criminal activities that endanger State security; it penalizes criminal activities that endanger
public security and disrupt the socialist economy as well as other criminal activities; and it punishes and reforms criminals.”
Notice: All Rights Reserved to the Legislative Affairs Commission of the Standing Committee of the National People’s Congress.






CIRCULAR OF THE GENERAL OFFICE OF THE STATE COUNCIL CONCERNING ISSUES IN RELATION TO COMPETENCE AND PROCEDURES FOR INTERPRETING ADMINISTRATIVE REGULATIONS

Category  JUDICIAL ADMINISTRATION Organ of Promulgation  The General Office of the State Council Status of Effect  In Force
Date of Promulgation  1999-05-10 Effective Date  1999-05-10  


Circular of the General Office of the State Council Concerning Issues in Relation to Competence and Procedures for Interpreting Administrative
Regulations

(Promulgated by the Document No. [1999]43 of the General Office of the State Council on May 10, 1999)

    In recent years, after the promulgation of administrative regulations (including implementation rules and
implementation regulations of laws) and statutory documents of the State Council or the General Office of the State Council concerning
the fulfillment and implementation of laws and administrative regulations, some department or localities have brought forward some
problems for interpretation. In order to guarantee the proper implementation of laws and administrative regulations, further improve
the work in relation to the interpretation of administrative regulations and statutory documents of the State Council or the General
Office of the State Council concerning the fulfillment and implementation of laws and administrative regulations, circulars concerning
some issues are now hereby issued as follows:

    1.If there is a need to further clarify the definition of or to make supplementary provisions to the text
of administrative regulations, the issue should be interpreted by the State Council. For this legislative interpretation, the Legislative
Affairs Office of the State Council should bring forward its opinions in accordance with the review procedures for draft administrative
regulations, and then report to the State Council for approval. According to different circumstances, the interpretation, upon approval
by the State Council, should be promulgated by the State Council or by the competent administrative department authorized by the
State Council.

    2.When the issue evolves from the specific application of administrative regulations during administration
work, if the competent administrative department can make interpretation within its limits of powers, it should be responsible for
making the interpretation. If the competent administrative department has difficulties in interpreting or other relevant departments
have different opinions on the interpretation made by it and request the State Council to interpret, the Legislative Affair Office
of the State Council should undertake the task to make an interpretation; for those in which crucial problems are involved, the Legislative
Affair Office of the State Council shall bring forward its opinions and report to the State Council for approval, and then, upon
approval of the State Council, make an interpretation which should be given as a reply to the competent administrative department
and sent in duplicate to other relevant departments.

    The interpretation of statutory documents of the State Council or the General Office of the State Council
concerning the fulfillment and implementation of laws and administrative regulations should be undertaken and made by the Legislative
Affairs Office of the State Council; for those in which crucial problems are involved, the Legislative Affair Office of the State
Council shall bring forward its opinions and report to the State Council for approval, and then, upon approval of the State Council,
make an interpretation. The interpretation of other documents of the State Council or the General Office of the State Council should
be undertaken by the General Office of the State Council in accordance with the existing practices.





LAW OF THE PEOPLE’S REPUBLIC OF CHINA ON DONATION FOR PUBLIC WELFARE UNDERTAKINGS

The Standing Committee of the National People’s Congress

Order of the President of the People’s Republic of China

No.19

The Law of the People’s Republic of China on Donation for Public Welfare Undertakings which has been adopted at the Tenth Meeting
of the Standing Committee of the Ninth National People’s Congress on June 28,1999 is promulgated now, and shall enter into force
as of September 1, 1999.

President of the People’s Republic of China: Jiang Zemin

June 28, 1999

Law of the People’s Republic of China on Donation for Public Welfare Undertakings ContentsChapter I General Provisions

Chapter II Donation and Acceptance of Donation

Chapter III Usage and Management of Property Donated

Chapter IV Preferential Measures

Chapter V Legal Liability

Chapter VI Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is enacted with a view to encouraging donation, standardizing the act of donation and acceptance of donation, protecting
the lawful rights and interests of donors, donees and beneficiaries, and promoting the development of public welfare undertakings.

Article 2

On the condition that natural persons, legal persons, and other organizations voluntarily donate property to legally established public
welfare associations and not-for-profit public welfare institutions without any compensation, and the donated property is used for
public welfare undertakings, this Law shall be applied.

Article 3

Public welfare undertakings mentioned in this Law refer to following matters:

(1)

activities of relieving disasters, helping the poor, assisting the disabled as well as other social groups and individuals in trouble;

(2)

education, science, culture, public health, and sports;

(3)

environmental protection, construction of public facilities;

(4)

other social and public welfare undertakings promoting the development and progress of society.

Article 4

Donation shall be made on a voluntary basis and without compensation, compulsory apportions or apportions in disguised form are prohibited,
the engagement of for-profit activities in the name of donation shall not be permitted.

Article 5

The use of donated property shall be subject to the willingness of a donor, and conforms to the purpose of public welfare, the donated
property shall not be misappropriated for other purposes.

Article 6

The making of donation shall be in conformity with laws and regulations; it shall not go against social morality, nor impair public
interests and other citizens’ legal rights and interests.

Article 7

Property and its increment accepted as donation by public welfare associations is social and public property, which is protected by
laws of the State; no unit or individual may appropriate, seize, or damage it.

Article 8

The State supports the development of public welfare undertakings, and gives supports and preferential treatments to public welfare
associations and not-for-profit public welfare institutions with a nature of.

The State encourages natural persons, legal persons and other organizations to make donations to public welfare undertakings.

Natural persons, legal persons and other organizations making outstanding contributions to donation for public welfare undertakings
are to be given commendation by the people’s governments or the relevant departments. Before giving public commendation to a donor,
comment for the donor shall be obtained in advance.

Chapter II Donation and Acceptance of Donation

Article 9

Natural persons, legal persons and other organizations may make donations to public welfare associations and not-for-profit public
welfare institutions comforting to their wishes of making donation. The property they donate shall be legal property on which they
have the right of disposition.

Article 10

Public welfare associations and not-for-profit public welfare institutions may accept donation in accordance with this Law.

Public welfare associations mentioned in this Law refer to legally established foundations, charity organizations and other associations
that hold the principle of developing public interests.

Not-for-profit public welfare institutions mentioned in this Law refer to legally established educational institutions, institutions
for scientific research, medical and public health institutions, social and public cultural institutions, social and public physical
institutions and social welfare institutions, etc, which are engaged in public welfare undertakings and do not aim at making profit.

Article 11

When natural disaster happens or the donors out of the territory require the people’s governments at or above the county level or
their departments to be the donees, the people’s governments at or above the county level or their departments may accept the donation,
and manage the donated property according to the relevant provisions of this Law.

The people’s governments at or above the county level or their departments may transfer the property they accept as donation to public
welfare associations or not-for-profit public welfare institutions; may also distribute the property in light of the donors’ wishes
or use it to initiate public welfare work, however, the people’s governments at or above the county level and their departments themselves
shall not a beneficiary.

Article 12

Donors may make a donation agreement with donees in terms of the sorts, quality, quantity and use of donated property. Donors have
the right to decide quantity, use and forms of donation.

Donors shall perform the donation agreement according to law, and transfer the donated property to donees in accordance with the time
limit and forms agreed upon in the agreement.

Article 13

When donating property to initiate a public welfare project, the donor shall make a donation agreement with the donor, agreeing on
the capital, construction, management and use of the projects.

For a donated public welfare project, the unit accepting the donation shall undergo examination and approval procedures according
to the provisions of the State, and shall alone, or together with the donor, organize the construction. The quality of the project
shall conform to the standards of the State.

After the completion of a donated public welfare project, the unit accepting the donation shall report particulars to the donors about
the construction, use of construction capital, and check-and-acceptance of quality of the project.

Article 14

A donor may head the donated project with his name for commemoration; for a project wholly donated by a donor or a project constructed
with the capital mainly donated by the donor, the donor may propose the post_title of the project, and then submit to the people’s government
at or above the county level for approval.

Article 15

As to property donated by donors outside the territory, the donee shall undergo entry procedures according to the relevant provisions
of the State; where the donated property is under the management of license, the donee shall undergo the procedures for applying
and obtaining a license according to the relevant provisions of the State, the Customs shall check, clear and supervise the property
on the basis of the license.

If overseas Chinese make donations, the department of the people’s governments at or above the county level in charge of overseas
Chinese affairs may assist to undergo entry procedures, and provide help to the donors in implementing the projects.

Chapter III Usage and Management of Donated Property

Article 16

After accepting a donation, the donee shall issue a legal and valid receipt to the donor, register the donated property on a record,
and management the property in a proper way.

Article 17

Public welfare associations shall use the donated property to imburse activities and undertakings conforming to their principles.
Property donated for salvation shall be promptly used for salvation. The amount of capital used for imbursing public welfare undertakings
by a foundation every year shall not be less than the proportion prescribed by the State.

A public welfare association shall strictly abide by the relevant provisions of the State, and actively keep and increase the value
of the donated property according to principle of legality, safety and effect.

A not-for-profit public welfare institution shall use the donated property to develop public welfare undertakings of its own, and
shall not misappropriate the property for other purposes.

As to property not easy for storage or transportation, or exceeding actual necessity, the donee may sell it, the income therefrom
shall be used for the purpose of the donation.

Article 18

Where a donation agreement has been made between the donee and the donor, the donee shall use the property according to the purpose
agreed upon, and shall not change the uses of the donated property without authorization. If it is really necessary to change the
uses of the property, consent form the donor shall be obtained.

Article 19

The donees shall, according to the relevant provisions of the State, establish and perfect financial and accounting systems and systems
for using donated property, strengthen the management of donated property.

Article 20

The donees shall report to the relevant governmental departments the use and management of the donated property every year, and accept
supervision. When necessary, the relevant governmental departments may audit their finance.

The Customs shall conduct supervision and management on donated articles import duties of which are reduced or exempted,

The overseas Chinese affairs department under the people’s government at or above the county level may take part in supervising the
use and management of the property donated by oversea Chinese.

Article 21

Donors have rights to donees with respect to the use and management of donated property, and put forward suggestion and opinion. As
to the inquiries of the donors, the donees shall make truthful replies.

Article 22

Donees shall publicize the donation and use as well as management of the donated property, and accept supervision of the society.

Article 23

Public welfare associations shall practise strict economy, and decrease managerial cost; salary of staff members and administrative
expenses shall be paid from interest and other income according to the standards prescribed by the State.

Chapter IV Preferential Measures

Article 24

When donating property for public welfare undertakings according to the provisions of this Law, corporations and other enterprises
may be given preferential treatment in enterprise income tax according to the provisions of laws and administrative regulations.

Article 25

When donating property for public welfare undertakings according to the provisions of this Law, Natural persons, individual businesses
of industry and commerce may be given preferential treatment in individual income tax according to the provisions of laws and administrative
regulations.

Article 26

As to materials donated from abroad to public welfare associations and not-for-profit public welfare institutions for public welfare
undertakings, import duties and value-added tax in import may be reduced or exempted according to the provisions of laws and administrative
regulations.

Article 27

As to donated projects, the local people’s governments shall give support and preference.

Chapter V Legal Liability

Article 28

Without permission of a donor, if a donee presumes to change the nature and uses of the donated property, the relevant department
of the people’s government at or above the county level shall order to make corrections, and give a warning. Where the making of
corrections is refused, upon approval of the donor, the people’s government at or above the county level may hand over for management
the property to public welfare associations or not-for-profit public welfare institutions that have identical or similar principles.

Article 29

Whoever misappropriates, seizes or embezzles donated property shall be ordered by the relevant departments of the people’s government
at or above the county level to return the misused money or articles, and shall also impose a fine; the direct responsible persons
shall be punished by units to which they belong according to the relevant provisions; where a crime is constituted, criminal liability
shall be investigated according to law.

The money and articles returned or recovered according to the provisions of the preceding paragraph shall be used for their original
purposes and uses.

Article 30

In the course of donation, whoever commits any one of the following acts shall be punished according to the relevant provisions of
laws and regulations; where a crime is constituted, criminal liability shall be investigated according to law.

(1)

to evade foreign exchange, to wangle foreign exchange;

(2)

to evade or dodge tax;

(3)

to engage in smuggling activities;

(4)

with no permission of the Customs and not paying due tax, to sell, transfer or use for other purposes within the territory the donated
property that is imported with a reduced or exempted tax.

Article 31

The staff members in the unit accepting the donation who abuse their powers, neglect their duties or practise favoritism for personal
interests, thereby causing heavy losses to donated property, shall be punished by the unit to which they belong according to the
relevant provisions; where crimes are constituted, criminal liabilities shall be investigated.

Chapter VI Supplementary provisions

Article 32

This Law shall enter into force as of September 1,1999.



 
The Standing Committee of the National People’s Congress
1999-06-28

 






DECISION OF THE PREPARATORY COMMITTEE FOR THE MACAO SPECIAL ADMINISTRATIVE REGION OF THE NATIONAL PEOPLE’S CONGRESS ON DETERMINATION OF QUALIFICATION FOR TRANSITING THE LEGISLATORS OF THE ORIGINAL LAST LEGISLATIVE COUNCIL OF MACAO WHO WERE TO BE ELECTED, TO THE MEMBERS OF THE FIRST LEGISLATIVE COUNCIL OF THE MACAO SPECIAL ADMINISTRATIVE REGION AND COMPLEMENT OF SHORT OF QUOTA.

Category  SPECIAL ADMINISTRATIVE REGION Organ of Promulgation  The Preparatory Committee for the Macao Special Administrative Region of Status of Effect  In Force
Date of Promulgation  1999-08-29 Effective Date  1999-08-29  


Decision of the Preparatory Committee for the Macao Special Administrative Region of the National people’s Congress on determination
of qualification for transiting the legislators of the original Last Legislative Council of Macao who were to be elected, to the
members of the First Legislative Council of the Macao Special Administrative Region and complement of short of quota.



the National People’s Congress

(Adopted at the 10th Plenary Session of the Preparatory Committee for the

Macao Special Administrative Region of the National people’s Congress on
August 29, 1999)

    In accordance with the provisions of the People’s Congress on the Method for the Formation of the First Government,
the First Legislative Council and Judicial Organ of the Macao Special
Administrative Region > and the First Legislative Council of the Macao Special Administrative Region of the
People’s Republic of China > adopted by the Preparatory Committee for the
Macao Special Administrative Region, through examination of qualification for
the legislators of the original last Legislative Council of Macao who ask for
transiting to members of the First Legislative Council of the Macao Special
Administrative Region, the Preparatory Committee for the Macao Special
Administrative Region of the National people’s Congress decide :

    1. The legislators of the original Last Legislative Council of Macao who
were to be elected directly (in order of the stroke of simplified Chinese
character of family name, same below ) Feng Zhi Qiang, Wu Guo Chang, Zhou Jin
Hui, Gao Kai Xian, Tang Zhi Jian, Liang Qing Ting, Liao Yu Lin; and who were
to be elected indirectly Xu Shi Yuan, Liu Zhuo Hua, Guan Cui Xing, Wu Rong
Ke, Ou An Li, Lin Qi Tao, Cui Shi Chang, Cao Qi Zhen  comform with the
qualification requirement for the members of the First Legislative Council
of the Macao Special Administrative Region of the People’s Republic of China,
and they are to be confirmed as the members of the First Legislative Council
of the Macao Special Administrative Region.

    2. The legislator of the original Last Legislative Council of Macao Zhao
He Chang (i.e. Chen Ji Jie ) who was to be elected directly, hasn’t according
to demand ask for transiting to the member of the First Legislative Council
of the Macao Special Administrative Region. One member of vacancy arising
therefrom shall be by-elected by the Selection Committee of the First
Government of the Macao Special Administrative Region in accordance with the
relevant provision of the Legislative Council of the Macao Special Administrative Region of the
People’s Republic of China > and under controlling by the Meeting of Director
Members of the Preparatory Committee.





CIRCULAR OF THE STATE ADMINISTRATION OF TAXATION ON SOME TAX ISSUES CONCERNING EXPORT GOODS OF ENTERPRISES WITH FOREIGN INVESTMENT

The State Administration of Taxation

Circular of the State Administration of Taxation on Some Tax Issues Concerning Export Goods of Enterprises with Foreign Investment

GuoShuiFa [1999] No.189

October 8, 1999

All the State taxation bureaus of provinces, autonomous regions, municipalitie directly under the Central Government and cities separately
listed on the State plan:

In order to further strengthen administration of tax refund (exemption) for export goods of the enterprises with foreign investment
and support the expansion of export of the enterprises with foreign investment and in accordance with the spirit of relevant decisions
of the State Council, some tax issues concerning export goods of the enterprises with foreign investment which were established upon
approval before December 31, 1993 (hereinafter referred to as the old enterprises with foreign investment) are hereby notified as
follows:

I.

On the issue concerning the measures for tax refund (exemption) for export goods

Starting from November 1, 1999, the original tax exemption measures for export goods of the old enterprises with foreign investment
by themselves or through their authorized agents shall be replaced by the export tax refund measures. The specific calculation method
of tax refund (exemption) shall be governed by the current method of “collection first and refund later” or tax “exemption, credit
and refund” for the self-operating production enterprises.

If an old enterprise with foreign investment requires to continue the tax exemption for its export goods, it may, before the end of
November 1999, submit its application to the competent tax authority, and after approval, it may, before the end of the year 2000,
continue to implement the provisions of the Circular on Relevant Issues Concerning the Tax Policy for Enterprises with Foreign Investment
Established upon Approval before December 31, 1993 (CaiShuiZi [1998] No.184) promulgated by the Ministry of Finance, the Ministry
of Foreign Trade and Economic Cooperation and the State Administration of Taxation for its export goods. Starting from January 1,2001,
its export goods shall be governed by the tax refund measures.

II.

On some issues concerning the specific policy after the implementation of tax refund (exemption) for export goods

(1)

The issue concerning tax refund (exemption) for the processing withsupplied materials or with imported materials.

The re-export of the old enterprises with foreign investment may, if their processing with supplied materials is completed directly
by themselves, be exempt from the value-added tax and consumption tax at the link of processing; and if their processing with supplied
materials is completed by other enterprises with foreign investment or domestic enterprises they authorized, be exempt from the consumption
tax and value-added tax for authorized processing fees according to the Tax Exempt Certificate for Processing with Supplied Materials
issued by the tax authorities in charge of tax refund.

If export goods are produced with imported materials and parts by the old enterprises with foreign investment in the form of processing
with imported materials, the amount of tax refund may be adjusted and calculated according to the following formulas respectively:

l.

The calculation formula for the method of “collection first and refund later “shall be:

Tax payable in the period=Tax on domestic sales of goods in the period + FOB price of export goods in the period * Quoted exchange
rate of Renminbi * Tax rate-(Tax on all purchases in the period +Price for tax calculation in the period approved by the Customs
as duty free for import materials and parts * Tax rate).

Amount of tax refund in the period=FOB price of export goods in the period * Quoted exchange rate of Renminbi * Tax refund rate-Price
for tax calculation in the period approved by the Customs as duty free for import materials and parts * Tax refund rate.

2.

The calculation formula for the method of tax “exemption, credit and refund” shall be:

Tax not be credited or refunded in the period=FOB price of export goods in the period * Quoted exchange rate of Renminbi * (Tax rate-Tax
refund rate)-Price for tax calculation in the period approved by the Customs as duty free for import materials and parts * (Tax rate-Tax
refund rate).

The specific calculation procedures and formulas thereof shall continue to be governed by the relevant provisions of the Supplementary
Circular of the Ministry of Finance and the State Administration of Taxation on Some Tax Issues Concerning Export Goods (CaiShuiZi
[1997] No.014).

The above-mentioned tax rate and tax refund rate mean the tax rate and tax refund rate applicable to re-export goods.

(2)

The issue concerning tax refund (exemption) for bid-winning mechanical and electronic products.

The bid-winning mechanical and electronic products of the old enterprises with foreign investment through international bidding for
projects using the loans of foreign governments or international financial organizations shall be governed by the method of collection
first and refund later”. Specific measures for administration of documents needed for applying for tax refund and examination and
approval procedures shall be governed by the relevant provisions of the Circular of the State Administration of Taxation on the Promulgation
ofthe Measures for Administration of Tax Refund (Exemption) for Export Goods (GuoShuiFa [1994] No.031 and the Circular of the State
Administration of Taxation on the Promulgation of the Specific Provisions on Some Issues Concerning Tax Refund (Exemption)for Export
Goods (GuoShuiFa [1999] No. 101).

(3)

The issue concerning tax refund (exemption) for export goods within bonded areas.

Tax may not be refunded (exempted) for the goods of the old enterprises with foreign investment moved to the bonded areas. When the
enterprises within the bonded areas purchase goods from the old enterprises with foreign investment outside the areas, they must
report relevant contents of special invoices for value-added tax to the competent tax authorities for the record, and after the said
goods are exported or re-exported after processing, they may apply for tax refund (exemption) according to the provisions.

(4)

The issue concerning tax refund (exemption) for steel “produced to substitute import”.

Tax collection and refund for export goods processed and produced by the old enterprise with foreign investment using duty-free steel
“produced to substitute import” shall be administered by applying mutatis mutandis the current measures for administration of tax
collection for processing trade, and shall be governed specifically by the relevant provisions of paragraph 1 of Article 18 of the
Circular on the Promulgation of the Rules for the Implementation of the Measures for Improvement of Steel “Produced to Substitute
Import” (GuoShuiFa [1999] No.68), promulgated by five ministries and commissions such as the State Administration of Taxation.

(5)

The issue concerning tax refund for repair and replacement operations.

When the old enterprises with foreign investment carry out foreign repair and replacement operations, their labor service incomes
from repair and replacement shall be exempt from the value-added tax, but the tax shall not be refunded. The tax shall be refunded
for the spare parts and raw materials used for their repair and replacement operations according to the special invoices for value-added
tax for their purchases and the applicable tax refund rate.

(6)

The issue concerning treasury adjustment for tax “exemption or credit”.

After the old enterprises with foreign investment implement the tax “exemption, credit and refund” measures, the treasury adjustment
for their “exempted or credited” taxes shall be governed by the Circular on the Issue Concerning Budget Management in the Implementation
of the Tax “Exemption, Credit and Refund” Measures of the Ministry of Finance, the State Administration of Taxation and the People’s
Bank of China (CaiYuZi [1998] No.242).

III.

On the issue concerning administration of tax refund (exemption) for export goods

(1)

The old enterprises with foreign investment shall, in accordance with the provisions of the GuoShuiFa [1994] Document No.031 of the
State Administration of Taxation and by presenting their industrial and commercial business license and other relevant materials,
go through the tax refund registration procedures with the tax authorities in charge of tax refund before the end of the year 1999.
If an enterprise fails to go through the tax refund registration procedures, the tax may not be refunded (exempted) for its export
goods.

If an old enterprise with foreign investment enters into dissolution, merger or change, it shall, within 30 days from the date of
approving its dissolution, merger or change, go through the tax refund registration procedures for cancellation or change with the
tax authority in charge of tax refund.

(2)

The old enterprises with foreign investment shall have full-time or part-time persons for managing their export tax refund (hereinafter
referred to as the tax operator), to whom the tax authorities in charge of tax refund shall issue the Tax Operator Certificate after
they pass training and qualification examination. Any person without the Tax Operator Certificate may not engage in export tax refund
operations. When an enterprise changes its tax operator, it shall timely make report to the competent tax authority to cancel the
Tax Operator Certificate. If the enterprise fails to make such report timely, the enterprise shall be liable for all tax refund activities
and responsibilities occurred between the former tax operator and the tax authority after the change.

(3)

The foreign-related tax authorities of State tax bureaus in all places shall be specifically responsible for routine administration
of export tax refund (exemption) for the old enterprises with foreign investment such as certificate issuance, inspection, settlement
and materials examination and safekeeping. The foreign-related tax authorities shall be responsible for accepting, on a monthly basis,
the advance applications of the enterprises under tax “exemption, credit and refund” for tax refund (exemption) and the applications
of the enterprises under “collection first and refund later” for tax payment or refund and for examining and approving tax exemption,
credit and refund and the tax amount payable and for handling the procedures of carrying the tax amount on income payable not yet
credited onto the following period to be credited. The import and export tax authorities shall be responsible for accepting, on a
quarterly basis, the consolidated applications of the enterprises under tax “exemption, credit and refund” for tax refund (exemption),
for accepting, on a monthly basis, the applications of the enterprises under the “collection first and refund later” for tax refund,
for examining and approving the amount of tax exemption, credit and refund, for informing the tax collection authorities to adjust
the amount of tax exemption and credit and for handling the tax refund procedures.

(4)

Export tax refund (exemption) for the old enterprises with foreign investment shall be managed by computer, and the specific procedures
thereof shall be governed by the Circular of the State Administration of Taxation on the Promulgation of the Measures for Electronic
Administration of Export Tax Refund (GuoShuiFa [1996] No.79).

IV.

On the issue concerning the checking up of export goods

(1)

All localities are required to check up the goods exported before November 1, 1999 by the old enterprises with foreign investment
which implement the tax refund (exemption) measures. The enterprises’ export goods which are declared to the Customs and leave the
territory before November 1, 1999 but are treated as sales in the accounting books after November 1,1999 shall continue to be governed
by the export tax exemption measures.

(2)

If imported materials and parts are purchased before November 1,1999 but are not yet written off at the moment, the old enterprises
with foreign investment shall, by presenting the Registration Manual of Processing with Imported Materials issued by the Customs
and other relevant certificates, apply to the tax authorities in charge of tax refund for supplemental issuance of the Application
Form for Processing Trade with Imported Materials.



 
The State Administration of Taxation
1999-10-08

 






MEASURES FOR THE IMPLEMENTATION OF COLLECTION OF INDIVIDUAL INCOME TAX TO THE INCOME OF SAVINGS DEPOSIT INTEREST

Category  TAXATION Organ of Promulgation  The State Council Status of Effect  In Force
Date of Promulgation  1999-09-30 Effective Date  1999-11-01  


Measures for the Implementation of Collection of Individual Income Tax to the Income of Savings Deposit Interest



(Promulgated by Decree No.272 of the State Council of the People’s

Republic of China on September 30, 1999 and effective as of the date of November 1, 1999)

    Article 1 These Measures are formulated in accordance with the
provision of Article 12 of the Individual Income Tax Law of the People’s
Republic of China.Article 2 The individuals gaining income from savings deposit interest
of renminbi and foreign currency from savings institutions in the People’s
Republic of China shall pay individual income tax according to these
Measures.Article 3 The criterion of collection to individual income tax to the
income  of savings deposit interest is the savings deposit interest of
renminbi and foreign currency gained by taxpayers.Article 4 The collection to individual income to savings deposit
interest shall apply proportional tax rate of 20 percent.Article 5 The income of savings deposit interest of education gained by
individuals and other specific savings deposit defined by financial
department under the State Council or the income from specific foundation
deposit interest with the savings quality shall exempt from collection of
individual income tax.  The education savings related by the preceding clause mean individuals
open accounts in authorized banks in accordance with the relevant
provisions of the state and deposit standard amount of fund, and use them
only for the aim of education.Article 6 The collection of individual income tax to the income of
savings deposit interest shall be computed and collected based on the
income from interest every time.Article 7 The collection of individual income tax to the income of
savings deposit interest shall take the savings institutions paying
interest as withholding agents and execute withholding and remitting.Article 8 Where a withholding agents pay interest to depositors
or
handle the business of automatic transfer deposit of savings deposit,
withholding agents withhold and remit tax payments according to law.  Where withholding agents withhold tax payments, they
shall make a mark
on the interest documents given to depositors.Article 9 Withholding agents shall bring the tax payments deducted
every month into the central exchequer within 7 days next month and file
report list of withholding and remitting tax payments to local competent
tax authorities; where the deducted tax payments are foreign currency,
withholding agents shall convert them into renminbi in accordance with
the base renminbi exchange rate of the last day of the previous month
ahead of payments quoted by People’s Bank of China and bring them into the
central exchequer in renminbi.Article 10 2 percent commission is given to withholding agents based on
deducted tax payments.Articled 11 Tax authorities shall strengthen control and check to the
situation of withholding and remitting tax payments of withholding agents.  
Withholding agents shall cooperate actively with tax authorities, and
report the situation accurately, and provide all relevant information.  
They may not refuse to cooperate and may not conceal the facts.Article 12 The collection of individual income tax to the income of

savings deposit interest shall be collected and managed by State Tax Bureau
in accordance with the Law of the People’s Republic of China on the
Administration of Tax Collection and Individual Income Tax Law of the
People’s Republic of China.Article 13 The savings institutions called by these Measures mean the
institutions, such as commercial banks, urban credit cooperatives, credit
cooperatives in rural areas handling savings business approved by People’s
Bank of China and it’s branches and the institution such as postal
enterprises handling savings business in accordance with law.Article 14 The income from interest fruited by savings deposit before

October 31, 1999 shall be exempted from individual income tax; where the
income of interest is fruited by the savings deposit after December 1,
1999, individual income tax shall be collected according to these Measures.

    Article 15 these Measures shall enter into effect as of the date of
December 1, 1999.





PROVISIONAL PROCEDURES OF THE CUSTOMS OF THE PEOPLE’S REPUBLIC OF CHINA GOVERNING THE LEVYING OF VESSEL TONNAGE DUES IMPORT GOODS

CONSTITUTION ACT, 1982 – page 21

CONSTITUTION ACT, 1982 – page 20

CONSTITUTION ACT, 1982 – page 19

CONSTITUTION ACT, 1982 – page 18

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