Regulations of the People’s Republic of China on Company Registration
(Effective Date:1994.07.01–Ineffective Date:)
CHAPTER ONE GENERAL PROVISIONS CHAPTER TWO JURISDICTION OF REGISTRATION CHAPTER THREE ITEMS FOR REGISTRATION CHAPTER FOUR REGISTRATION
OF ESTABLISHMENT CHAPTER FIVE ALTERATION REGISTRATION CHAPTER SIX CANCELLATION REGISTRATION CHAPTER SEVEN REGISTRATION OF BRANCH
COMPANIES CHAPTER EIGHT PROCEDURES OF REGISTRATION CHAPTER NINE ANNUAL CHECKING CHAPTER TEN MANAGEMENT OF LICENSES AND ARCHIVES CHAPTER
ELEVEN LEGAL RESPONSIBILITY CHAPTER TWELVE SUPPLEMENTARY PROVISIONS
Article 1 This set of regulations has been formulated in pursuant to the Company Law of the People’s Republic of China (hereinafter referred
to as “company law”) in order to confirm the capacity of companies as legal enpost_titles and standardize the behaviour of company registration.
Article 2 Limited liability companies and joint stock limited companies (hereinafter referred to as “companies”) shall go through company registration
procedures in their establishment, alteration or termination.
Article 3 Only after the registration is approved by a company registration organ and the acquirement of a “Business License of Legal Entity”,
a company can acquire the capacity as a legal entity.
A company established after this set or regulations becoming effective shall not engage in any business activities in the name of
the company unless its registration has been approved by company registration organ.
Article 4 Administrations for industry and commerce are the company registration organs.
The company registration organs at a lower level shall work under the leadership of company registration organs at a higher level.
Company registration organs shall perform their duties according to law, free from any unlawful interference.
Article 5 The State Administration for Industry and Commerce shall administer the work of company registration in the whole country.
CHAPTER TWO JURISDICTION OF REGISTRATION
Article 6 The State Administration for Industry and Commerce is responsible for the registration of the following companies:
1. Joint stock companies approved by departments authorized by the State Council;
2. Companies set up with investment authorized by the State Council;
3. Limited liability companies established solely or jointly by investment organizations authorized by the State Council;
4. Limited liability companies established by foreign investors;
5. Other companies that should be registered with the State Administration for Industry and Commerce according to the provisions of
relevant laws and regulations or according to the regulations promulgated by the State Council.
Article 7 Administrations for industry and commerce of provinces, autonomous regions or centrally administered municipalities are responsible
for the registration of the following types of companies within their jurisdiction:
1. Joint stock limited companies established with the approval of the people’s governments of provinces, autonomous regions and centrally
administered municipalities;
2. Companies established with investment authorized by the people’s governments of provinces, autonomous regions and centrally administered
municipalities;
3. Limited liability companies established jointly by investment organizations or departments authorized by the State Council in cooperation
with other investors;
4. Limited liability companies established solely or jointly by investment or investment organizations or departments authorized by
the people’s governments of provinces, autonomous regions or centrally administered municipalities; and
5. Companies whose registration is entrusted by the State Administration for Industry and Commerce.
Article 8 Administrations for industry and commerce of cities and counties are responsible for the registration of companies other than those
listed in Article 6 and Article 7 within its jurisdiction. Their jurisdiction of registration shall be determined by administrations
for industry and commerce of various provinces and autonomous regions.
CHAPTER THREE ITEMS FOR REGISTRATION
Article 9 Items for company registration include: name, residence, legal representative, registered capital, type of enterprise, business scope,
term of operation and names of the shareholders of limited liability companies or names of promoters of joint stock limited companies.
Article 10 The items for company registration shall conform to the provisions of laws and administrative decrees. Company registration organs
shall refuse to register companies whose items for registration do not conform to the provisions of laws and administrative decrees.
Article 11 The naming of a company shall conform to the relevant provision of the State. A company shall use one name only. The name of a company
whose registration has been approved by a company registration organ shall be protected by law.
Article 12 The residence of a company is the seat of major office of the company. There must be only one residence registered with the company
registration organ. The company residence should be within the jurisdiction of the company registration organ.
Article 13 The registered capital of a company shall be expressed in Renminbi, except otherwise provided by laws and administrative decrees.
CHAPTER FOUR REGISTRATION OF ESTABLISHMENT
Article 14 In establishing a company, an application shall be filed for the pre-approval of its name.
For companies whose establishment is subject to going through examination and approval procedures according to law or administrative
decrees, or there are items within their scopes of business are subject to going through examination and approval procedures as required
by laws or administrative decrees, an application shall be filed for the pre- approval of their names before they submit for examination
and approval in the name of the companies approved by the company registration organs.
Article 15 In establishing a limited liability company, a representative designated by all the shareholders or an agent jointly entrusted shall
file an application for the pre-approval of its name with the company registration organ. In establishing a joint in stock limited
company, a representative designated by all the promoters or an agent jointly entrusted shall file an application for the pre-approval
of its name with the company registration organ.
In applying for the pre-approval of company name, the following documents shall be submitted:
1. An application for the pre-approval of the name of the company signed by all the shareholders of a limited liability company or
by all the promoters of a joint stock limited company;
2. The certificates for the capacities of the shareholders or promoters as legal enpost_titles or their identification certificates as
natural persons.
3. Other documents as required for submission by the company registration organ.
The company registration organ should make the decision of approval or refusal within ten days after the receipt of the above listed
documents. After the company registration organ has decided to approve the registration, it shall give a “Notice of Pre-Approval
of Company Names” to the company concerned.
Article 16 A reservation period of six months is given to the pre- approved company name, within such a period, the pre-approved name shall
not be used for engaging in business operation or transferred.
Article 17 In establishing a limited liability company, a representative designated by all the shareholders or an agent jointly commissioned
shall file an application for registration with the company registration organ. In establishing a company wholly owned by the State,
the investment organization or department authorized by the State Council shall act as an application and file an application for
registration. For limited liability companies which are stipulated by laws or administrative decrees to be subject to examination
and approval procedures, an application shall be filed for establishment registration within 90 days starting from the date of approval.
If the application for establishment registration is filed after the period expires, the applicant shall report to the examination
and approval organ for confirmation of the validity of the document of approval or submit for approval separately.
In applying for the establishment of a limited liability company, the following documents shall be submitted to the company registration
organ:
1. An application form for the establishment of the company signed by the chairman of the board of directors;
2. The certificate of the representative designated by all the shareholders or an agent jointly entrusted;
3. The articles of association; 4. The certificate of verification of investment produced by an investment verification organization
with statutory qualifications;
5. The certificates of the capacities of shareholders as legal persons or certificates of identification of the agent jointly commissioned;
6. The documents specifying the name and residences of the board of directors, supervisors and managers and the certificates for their
commission, election or appointment;
7. The document of appointment and certificate of identification of the legal representative of the company;
8. The notice of pre-approval of its name; and
9. The certificate of the residence of the company.
In cases where the establishment of a limited liability company is subject to examination and approval procedures as required by laws
or administrative decrees, the document of approval shall be submitted.
Article 18 In establishing a limited joint stock company, the board of directors shall apply for registration with the company registration
organ within 30 days after the end of the inauguration of the board of directors.
In establishing a joint stock limited company, the following documents shall be submitted to the company registration organ:
1 An application form for the establishment of the company signed by the chairman of the board of directors;
2. The document of approval issued by the department authorized by the State Council or the people’s governments of provinces, autonomous
regions or centrally administered municipalities and the document of approval issued by the securities management department of the
State Council in the case of a stock limited company established by floating their shares;
3. Minutes of the founding meeting;
4. The articles of association;
5. The financial auditing report on the preparation for the establishment of the company;
6. The certificate of investment verification produced by an investment verification organization with the statutory qualifications;
7. The certificates of the capacities of promoters as legal persons or certificates of identification as natural persons;
8. The documents specifying names and residences of the board of directors, supervisors and managers and the certificates for their
commission, election or appointment;
9. The document of appointment and certificate of identification of the legal representative of the company;
10. The notice of pre-approval of its name; and
11. The certificate of the residence of the company.
Article 19 If there are items within its scope of business for which examination and approval are required by the laws or administrative decrees,
the items shall be submitted for examination and approval to the relevant departments of the State before applying for registration
and the document of approval shall be submitted to the company registration organ.
Article 20 If there are provisions in the article of association that violate the laws or administrative decrees, the company registration organ
has the right to demand correction.
Article 21 The certificate of residence refers to the document that can certify the right of the company to use the residence.
Article 22 A company is declared established after the company registration organ has approved the registration of establishment and issued
the “business license of legal entity”. The company shall have its seal made, open a bank account and apply for the registration
of tax payment by producing the business license of legal entity issued by the company registration organ.
CHAPTER FIVE ALTERATION REGISTRATION
Article 23 In changing the entries of register, a company shall apply for registering the changes with the original company registration organ.
A company shall not alter the entries of register without approval.
Article 24 In applying for registering alterations, a company shall submit the following documents to the company registration organ:
1. An application form for registering changes signed by the legal representative of the company;
2. The resolution or decision on the changes in compliance with its articles of association;
3. Other documents as required by the company registration organ.
If the changes of registration concern the revision of the articles of association, the revised version of the articles of association
or the amendment bill for the revision of the articles of association shall be submitted.
Article 25 In altering the name of a company, an application for registering the change shall be filed within 30 days starting from the date
when the resolution or decision on the change is taken.
Article 26 In altering the company residence, an application for registering the change shall be filed before it moves into the new residence
and submit the certificate for the use of the new residence.
If the change of residence concerns the jurisdiction of the company registration organs, the company shall file an application of
registering the change in residence with the company registration organ at its new place of residence. If the company registration
organ of the new place of residence accept the application, the original company registration organ shall transfer the files of company
registration to the company registration organ of the new place of residence.
Article 27 If the legal representative of a company is changed, an application for registering the change shall be filed within 30 days starting
from the date when the resolution or decision on the change is made.
Article 28 If a company changes its registered capital, it shall present the certification of capital verification produced by a capital verification
organization with the statutory qualifications.
If a company increases its registered capital, it shall apply for registering the change within 30 days starting from the date when
the additional capital is paid in full. If a joint stock limited company increases its registered capital, it shall present the document
of the people’s governments of provinces, autonomous regions or centrally administered municipalities. If the registered capital
is increased by way of floating shares, it should submit the document of approval issued by the securities management department
under the State Council.
In reducing registered capital, a company shall apply for registering the change within 90 days when the resolution or decision on
the change is taken, together with the certificate to certify that the company has published for at least three times the announcement
of the company on the reduction of its registered capital and an explanation on debt clearance or debt guarantee of the company.
Article 29 In altering the scope of business, a company shall file an application for registering the change within 30 days starting from the
date when the resolution or decision on the change is taken. If the change in business scope concerns items that are required by
laws or administrative decrees for examination and approval, the application for registering the change shall be filed within 30
days starting from the date of approval by relevant State departments.
Article 30 In altering the type of company, an application for registering the change shall be filed with the company registration organ within
the prescribed time limit according to the requirements of the type of company to be changed into and by presenting the documents
required.
Article 31 If a limited liability company changes its shareholders, it shall file an application for registering the change within 30 days starting
from the date when the change took place and present the certifications for the capacities of the new shareholder as legal persons
or certificates of their capacities as natural persons.
If a limited liability company changes the personal names of shareholders or a joint stock limited company changes the names of its
promoters, it shall file an application for registering the change within 30 days starting from the date when the name or names are
changed.
Article 32 If the articles of association of a company have been revised but the revision or revisions do not concern the entries of register,
the company shall submit the revised articles of association or the amendment bill for revising the articles of association to the
original company registration organ for the record.
Article 33 If there are changes in directors, supervisors or managers of a company, the company shall submit the changes to the original company
registration organ for the record.
Article 34 If the entries of register have been changed after a company continues to exist despite merger or separation, the company shall file
an application for registering the changes; for a company which is dissolved after merger or separation, it shall file an application
for cancellation. For a company established anew after merger or separation, it shall file an application for registration.
In the case of merger or separation concerning a company, the company shall file an application for registration within 90 days starting
from the date when the resolution or decision concerning the merger or separation is taken, submitting the merger agreement or the
resolution or decision concerning the merger or separation and the certificate to certify that the company has published in the press
for at least three times its announcement on merger or separation and an explanation of its debt clearance or debt guarantee. In
the case of a joint stock limited company, which is involved in the merger or separation, the document of approval issued by the
department authorized by the State Council or by the people’s government of a province, an autonomous region or a centrally administered
municipality shall be submitted.
Article 35 If the changes in the entries of register concern the items specified in the business license, the company registration organ shall
replace the original business license.
CHAPTER SIX CANCELLATION REGISTRATION
Article 36 The liquidation organization of a company shall apply for the cancellation of registration with the original company registration
organ within 30 days starting from the date when the liquidation ends if it belongs to one of the following cases:
1. The company is declared bankrupt according to law;
2. The term of operation prescribed in the articles of association has expired or other causes for the dissolution of the company
as prescribed in the articles of association have emerged;
3. The company is dissolved by the resolution of the meeting of shareholders;
4. The company is dissolved due to merger or separation;
5. The company is ordered to close according to law.
Article 37 In registering cancellation of a company, the following documents shall be submitted:
1. An application form for cancellation signed by the leading member of the company’s liquidation organization;
2. The ruling of the court on the bankruptcy, the resolution or decision taken by the company according to the articles of association
or the document of the administration organ on ordering the closure of the company;
3. The liquidation report acknowledged by the meeting of the shareholders or by relevant organs;
4. The business license of legal entity of the company;
5. Other documents as required by laws or administrative decrees.
Article 38 A company shall terminate its operation after the company registration organ approves the registration of cancellation.
CHAPTER SEVEN REGISTRATION OF BRANCH COMPANIES
Article 39 A branch company refers to an organization established by a company to engage in business operations outside its place of residence.
A branch company shall not enjoy the status as a legal entity.
Article 40 In establishing a branch or branches, a company shall apply for registration with the company registration organ(s) of the city (cities)
or county (counties) of the place of residence of the branch or branches. If the registration is approved, business license shall
be issued.
Article 41 The items for registration of a branch or branches of a company shall include the name, business site, leading member and business
scope.
The naming of a branch company shall conform to the relevant provisions of the State.
The business scope of a branch company shall not exceed that of the mother company.
Article 42 In establishing a branch, a company shall apply for registration with the company registration organ within 30 days starting from
the date when the decision is taken. If the examination and approval of relevant departments are required by laws or administrative
decrees, the application for registration shall be filed with the company registration organ within 30 days starting from the date
with the document of approval is received.
In applying for the establishment of a branch company, the following documents shall be presented:
1. An application form for the registration of a branch signed by the legal representative of the company;
2. The articles of association and a copy of the business license of legal entity affixed with the seal of the company registration
organ;
3. The certificate for the use of the business site; and
4. Other documents as required by the company registration organ.
Article 43 If a branch of a company changes the entries of register, it shall apply for registering the changes with the company registration
organ.
In applying for registering changes, a branch company shall submit an application form for registering the changes signed by the legal
representative of the company. If the company has become a branch due to the change in its name, it shall submit copy of the business
license of legal entity. If the changes concern items that required by laws or administrative decrees for examination and approval,
the document of approval by the relevant department is required. If the business site is changed, a certificate for the use of the
new site is required.
If the company registration organ approves the application for registering changes, the business license shall be replaced.
Article 44 If a company cancels its branch or branches, it shall apply for the registration of cancellation with the company registration organ
within 30 days starting from the date when the decision on the cancellation is taken. In applying for the registration of cancellation,
the company shall present the application for registering cancellation signed by the legal representative of the company and the
business license of the branch of breaches. If the company registration organ has approved the application for cancellation, it shall
recover the business license or licenses of the branch or branches.
CHAPTER EIGHT PROCEDURES OF REGISTRATION
Article 45 After receiving all the documents required by the provisions of this set of regulations from an applicant, the company registration
organ shall issue a “notice of acceptance of the company registration”.
The company registration organ shall make the decision on approval or refusal within 30 days starting from the date when the “notice
of acceptance of the company registration” is issued.
If the company registration organ has approved the registration, it shall, within 15 days starting from the date when the approval
is given, notify the applicant of the decision, issue, replace or revoke the business license of an enterprise entity or business
license.
If a company registration organ refuses registration, it shall notify the application of the decision and issue the “notice of refusal
on company registration” within 15 days starting from the date when the decision is taken.
Article 46 In going through the procedures of registering the establishment of a company or registering changes, a company shall pay a registration
fee to the company registration organ.
In obtaining the “business license of legal entity”, the registration fee shall be one per thousand of the total registered capital.
If the registered capital has exceeded RMB 10 million, a payment of 0.5 per thousand of the part in excess of RMB 10 million shall
be paid; if the registered capital has exceeded RMB 100 million, no more fees shall be collected on the part in excess of the RMB
100 million.
In obtaining a business license, the fees for registering the establishment shall be RMB 300.
In applying for registering changes, the registration fee is RMB 100.
Article 47 The company registration organ shall record the registered items approved on the company registration book for the public to check
and copy. In checking or copying the registered items, a fee shall be paid.
Article 48 A joint stock limited company shall announce its establishment, alteration or cancellation within 30 days starting from the date
when the establishment, alteration or cancellation is approved and submit the announcement to the company registration organ for
the record within 30 days starting from the date when the announcement is made. The contents of the announcement concerning the establishment,
alteration or cancellation shall be the same as those approved by the company registration organ. If inconformity is found, the company
registration organ has the right to demand correction.
The announcement of revoking the “business license of legal entity” or “business license” shall be issued by the company registration
organ.
Article 49 The company registration organ shall carry out annual checking of the companies registered during the period from January 1 to April
30, every year.
Article 50 A company shall accept annual checking within the prescribed period of time according to the requirements raised by the company registration
organ and submit an annual checking report, its annual statement of assets and liabilities and balance sheet and the copy of the
“business license of legal entity”.
If a company has a branch or branches, it should reflect the information about the branch or branches in the annual checkup materials
submitted and submit the copy of the “business license” of the branch or branches.
Article 51 The company registration again shall cross-check the relevant information on the items registered contained in the annual check-up
report submitted by the company so as to conform the qualifications for continuing its operation.
Article 52 A company shall pay a fee for annual checking to the company registration organ. The annual check-up fee is RMB 50.
CHAPTER TEN MANAGEMENT OF LICENSES AND ARCHIVES
Article 53 The “Business License of Legal Entity” and “Business License” have the original and copies, which have equal binding force.
The original of the “Business License of Legal Entity” or the original “Business License” should be placed on an eye-catching position
of the residence of a company or its branch.
A company may, according to operational needs, apply for a number of copies of the business license with the company registration
organ.
Article 54 No unit or individual is allowed to forge, alter, lease, lend or transfer business licenses.
If a business license is lost, the company shall declare its invalidity on the newspapers designated by the company registration organ
and apply for a reissue.
If a company needs to have the seal of the company registration organ affixed on the duplicates of its business license to be submitted
to relevant units according to relevant regulations of the State, the company registration organ may affix seal on the duplicates.
Article 55 A company registration organ may hold the business licenses of a company if it deems it necessary to be authenticated and the period
of retention shall not exceed ten days.
Article 56 The borrowing, copying, carrying or duplicating of the archived materials of a company shall be carried out within the prescribed
term of reference and procedures.
No unit or individual is allowed to modify, alter, adding notes to or damage the archive materials of a company.
Article 57 The style of the original and copies of business license and the format or tables concerning the company registration shall be determined
by the State Administration for Industry and Commerce in an unified manner.
CHAPTER ELEVEN LEGAL RESPONSIBILITY
Article 58 If the registration of a company is acquired through falsification of the registered capital, the company registration organ shall
order it to correct and impose a fine of anywhere from more than five percent to less than 10 percent of the registered capital falsified.
If the case is very serious, the company registration organ shall cancel the registration and revoke its business license. If the
case constitutes a crime, criminal responsibility shall be affixed.
Article 59 If registration of a company is acquired through a false certificate or other deceptive means, the company registration organ shall
order it to correct and impose a fine of anywhere between more than RMB 10,000 and less than RMB 100,000. If the case is very serious,
it shall cancel its registration and revoke its business license. If the case constitutes a crime, criminal responsibility shall
be affixed.
Article 60 If a promoter or shareholder of a company is found to have make phoney capital-failing to pay up the capital in cash or in kind or
by transfer of property, the company registration organ shall order him/her to
| Category |
BANKING |
Organ of Promulgation |
The State Council |
Status of Effect |
In Force |
| Date of Promulgation |
1994-04-05 |
Effective Date |
1994-04-05 |
|
|
|
Circular of the General Office of the State Council Concerning Banning the Illegal Use of the Designs of Renminbi and State Bonds
on Publicity Materials, Publications and Other Commodities |
(April 5, 1994)
In March 1991, the People’s Bank of China, the Ministry of Public
Security, State Administration of Industry and Commerce, Press and
Publication Administration of China and Ministry of Radio, Film and Television
jointly issued the Circular Regarding Banning the Illegal Use of Designs of
Renminbi, Foreign Currencies and State Bonds on Publicity Materials,
Publications and Related Commodities”. The document has since played a
positive role in strengthening the administration of Renminbi and state bonds.
However, a recent investigation uncovered the fact that various persons in
Fuding County, Fujian Province, had adopted deceptive means to duplicate
Renminbi for packaging small round candy which was then offered for public
consumption; and various persons in the Xinjiang Uygur Autonomous Region had
counterfeited small denominations of Renminbi which were used to purchase
commodities and even change was given when they were used to make payment.
Illegal acts involving the use of the various designs of Renminbi and state
bonds on publicity materials, publications and commodities have occasionally
surfaced and provided the opportunity for unscrupulous criminals to engage in
fraudulent activities leading to a disturbance in the financial order, and
creating certain difficulties in combating the counterfeiting of currency. In
order to safeguard the credit standing and dignity of Renminbi and state
bonds, this notice regarding related matters is hereby publicized with the
approval of the State Council:
1. Without having received the approval of the People’s Bank of China, no
unit or individual shall in any manner imitate the designs of Renminbi when
printing tickets or coupons for internal use, or duplicate the designs of
Renminbi or state bonds (either in actual or reduced sizes) on publicity
materials, publications or other commodities.
2. Supervision and administration shall be strengthened upon the business
of printing, publishing, film and television production, advertising and
other commodity production. Publicity materials, publications or other
commodities published or sold with designs of Renminbi or state bonds
printed thereon without the approval of the People’s Bank of China shall be
sealed up upon discovery and destroyed on the spot. The illegal proceeds of
sales occurring prior to discovery of the illegal act shall be confiscated,
a fine not exceeding the equivalent value of the proceeds of sales shall be
imposed, and the directly responsible personnel and personnel directly
handling the affairs of the involved units and the examination and approving
department shall be investigated for responsibilities.
3. Various localities and departments shall conscientiously organize
inspections and investigations in accordance with the aforementioned
stipulations, media units shall do a good job with related publicity
activities, and departments concerned shall strengthen the work of supervision
and administration, with the combined effort designed to eliminate the
counterfeiting or otherwise illegal use of the designs of Renminbi and state
bonds.
| Category |
TAXATION |
Organ of Promulgation |
The State Council |
Status of Effect |
In Force |
| Date of Promulgation |
1994-02-22 |
Effective Date |
1994-01-01 |
|
|
|
Circular of the State Council on Several Problems Concerning the Application of the Provisional Regulations on Value-added Tax, Consumption
Tax, Business Tax, Etc., to Enterprises With Foreign Investment and Foreign Enterprises |
(February 22, 1994)
According to “Decision of the Standing Committee of the National People’s
Congress on the Application of the Provisional Regulations on Value-Added Tax,
Consumption Tax, Business Tax, etc., to Enterprises with Foreign Investment
and Foreign Enterprises” (hereinafter referred to as “the Decision”) as
examined and approved at the Fifth Meeting of the Standing Committee of the
Eighth National People’s Congress, several problems such as the categories of
taxes applicable to enterprises with foreign investment and foreign
enterprises and so on are hereby notified as follows:
1. Problems Concerning the Categories of Taxes Applicable to Enterprises
with Foreign Investment and Foreign Enterprises
According to provisions of “the Decision”, the following provisional
regulations, in addition to “Provisional Regulations of the People’s Republic
of China on Value-Added Tax”, “Interim Regulations of the People’s Republic of
China on Consumption Tax”, “Interim Regulations of the People’s Republic of
China on Business Tax” and “Income Tax Law of the People’s Republic of China
for Enterprises with Foreign Investment and Foreign Enterprises”, shall be
applicable to enterprises with foreign investment and foreign enterprises:
(1) “Provisional Regulations of the People’s Republic of China on Land
Appreciation Tax”, promulgated on December 13, 1993 by the State Council;
(2) “Provisional Regulations of the People’s Republic of China on Resource
Tax”, promulgated on December 25, 1993 by the State Council;
(3) “Interim Regulations of the People’s Republic of China on Stamp Tax”,
promulgated on August 6, 1988 by the State Council;
(4) “Interim Regulations Concerning Tax on Slaughtering Animals”,
promulgated on December 19, 1950 by the Government Administration Council of
the Central People’s Government;
(5) “Interim Regulations Concerning Urban Real Estate Tax”, promulgated on
August 8, 1951 by the Government Administration Council of the Central
People’s Government;
(6) “Interim Regulations Concerning the Vehicle and Vessel Usage License
Plate Tax”, promulgated on September 13, 1951 by the Government Administration
Council of the Central People’s Government; and
(7) “Interim Regulations Concerning Deed Tax”, promulgated on April 3,
1950 by the Government Administration Council of the Central People’s
Government.
With the progress of taxation system reform, the State Council shall be
revising and making other provisional regulations on taxation, and enterprises
with foreign investment and foreign enterprises shall accordingly comply with
the provisions of the relevant regulations.
2. Problems Concerning Handling of the Increased Tax Burden of Enterprises
with Foreign Investment Due to the Imposition of Value-Added Tax, Consumption
Tax and Business Tax
(1) As to an enterprise with foreign investment approved to be established
before December 31, 1993, where its tax burden increases as a result of the
imposition of value-added tax, consumption tax and business tax, the
enterprise may, upon application to and with the approval of the tax
authorities, have a refund on the excess tax payment due to the increased tax
burden within the approved operation period, with a maximum limit of not
exceeding five years; if no operation period has been specified, the
enterprise may, upon application to and with the approval of the tax
authorities, have a refund on the excess tax payment as mentioned above within
a period of not exceeding five years.
(2) Where an enterprise with foreign investment pays both value-added tax
and consumption tax, the payment exceeding the original tax burden shall,
according to the proportion of the paid value-added tax to the paid
consumption tax, be refunded respectively.
(3) Where the products manufactured by an enterprise with foreign
investment are to be exported directly or through selling to an export
enterprise, that enterprise with foreign investment may, according to the
provisions of “Provisional Regulations of the People’s Republic of China on
Value-Added Tax”, handle the refundment affairs at one stop by producing the
export declaration form and the tax payment receipt.
(4) The refundment of the excess tax payment applied for by an enterprise
with foreign investment shall, in principle, be conducted at one time after
the end of the year; where the tax burden increases are comparatively higher,
the enterprises concerned may apply for the refund quarterly in advance, and
the clearance shall be done after the end of the year.
(5) The State Administration of Taxation and its affiliated establishments
shall be responsible for dealing with the refundment affairs relating to the
value-added tax and the consumption tax, and the state treasuries at all
levels shall conduct examination and verification seriously and make strict
checks. The computation of the refund, as well as the procedures of the
application for refund and the approval thereof, shall be prescribed by the
State Administration of Taxation separately.
(6) The refundment affairs relating to the business tax shall be
prescribed by the people’s governments of the provinces, autonomous regions or
municipalities directly under the Central Government.
3. Problems Concerning Taxation on Chinese-Foreign Cooperative
Exploitation of Petroleum Resources
Crude oil and natural gas exploited by a Chinese-foreign cooperative oil
field shall be taxed of value-added tax in kind at a rate of 5%, and the
royalties shall be levied in accordance with the relevant provisions in
effect, with temporary exemption from the resource tax. The input tax shall
not balance the value-added tax payable. Where crude oil or natural gas is
exported, there shall be no refund of tax.
Self-operative offshore oil field of China Offshore Petroleum Company
shall comply with the above provisions mutatis mutandis.
This Circular shall go into effect as of January 1, 1994.
| Category |
PUBLIC HEALTH AND MEDICINE |
Organ of Promulgation |
The State Council |
Status of Effect |
In Force |
| Date of Promulgation |
1994-09-29 |
Effective Date |
1994-09-29 |
|
|
|
Urgent Circular Concerning Further Strengthening the Administration of Medicine |
(September 29, 1994)
Medicine is a special kind of commodity that has considerable bearing on
the lives and health of the people. Therefore, strengthening medical
administration, guaranteeing the quality of medicine and ensuring people
convenient, timely, safe and effective application of medicine are important
tasks which safeguard the people’s health, maintain social stability and
ensure a successful progress of economic construction and the smooth conduct
of reform and opening. Since the reform and opening, the cause of China’s
medicine has undergone a rapid development. Nonetheless, in order to further
strengthen the administration of medicine, the state has enacted the “Law of
the People’s Republic of China on the Administration of Medicine” (hereinafter
referred to as the “Law on the Administration of Medicine”), formulated a
series of related administrative regulations and worked out a set of documents
having legislative character. And forces have, time and again, been organized
to wage concentrated crackdown on criminal activities in respect of the
manufacture and sale of false and inferior medicine, resulting in certain
effectiveness. We must be aware, however, that problems still persist
regarding the administration of medicine, some of which are rather serious.
The outstanding expression is the fact that criminal activities involving the
illegal manufacture and sale of false and inferior medicine has not been
eliminated despite repeated prohibitions thereof and in some areas numerous
kinds of false and inferior medicine are produced and sold on a large scale.
Such criminals have lost sight of social virtue because of their unscrupulous
commitment to illicit profits, thus bringing about serious consequences. Some
districts and departments, in an attempt to grab self-interest, have broken
the law on administration of medicine, and have competed for the establishment
of medicine-producing and selling enterprises as well as trade fair markets
for medicine. And as a result, disorder has arisen in respect of medicine
production and sales, and malpractices including bribery, demand for bribery
and illegal rebates have prevailed in the purchase and sales of medicine.
Moreover, advertisements of medicine in violation of law filled with
outrageous overstatements have gone unchecked, and development of new
medicines has not been sufficiently protected. Criminal activities in
producing and selling false and inferior medicine have seriously endangered
people’s lives and health, impaired the nation’s interests, disturbed the
economic order, corrupted social morality, produced adverse effect on social
stability and defamed the reputation of the Party and government, and to these
people from various circles have reacted strongly. Therefore, the time has
come when great efforts must be made to find a solution for them. Thus
following urgent circular on related matters is hereby publicized:
1. The people’s governments and departments at various levels should raise
the level of understanding and practically strengthen leadership regarding the
administration of medicine.
One of the important reasons that criminal activities in producing and
selling false and inferior medicine has not been eliminated despite repeated
prohibitions is the fact that some local governments and departments have not
understood the significance of medicine as a special kind of commodity in
relation to the people’s lives and health, under a mistaken idea that
administration of medicine may be slackened when the establishment of
socialist market economic system is under way. Some districts and departments
have, for their own partial and local interests, gone so far as to protect the
criminal activities in producing and selling false and inferior medicine.
The people’s governments and related departments at various levels shall,
with a sense of high responsibility for the country and people and an overall
view of the situation, unify the understanding of the significance of
strengthening administration of medicine, adopt effective measures to
implement seriously laws and administrative regulations on administration of
medicine, strengthen supervision and administration as well as macro-control
by the state of medicine production and sales, so as to rectify and
standardize production and sales thereof and, in combination with the struggle
against corruption, to investigate and deal with cases involving violation of
laws and discipline, with a view to the establishment of a unified, open,
competitive and orderly system for medicine production and sales.
The people’s governments at various levels should establish a system
whereby status of the targets set for the government leaders pertinent to the
administration of medicine within their terms of office can be evaluated. The
principal responsible comrades of the people’s governments at various levels
should practically bear the leadership’s responsibility for the administration
of medicine within their respective regions, and the leaders of the
governments and relevant departments of the areas where disorder exists in the
administration of medicine shall, in accordance with law, be investigated for
responsibility.
2. Effective measures should be taken to significantly strengthen law
enforcement and administration of medicine production and sales.
Presently, the people’s governments at various levels and relevant
departments should attach great importance to the performance of following
work:
(1) Rectify and standardize the production and sales of medicine
enterprises and individual industry and commerce.
In the light of the present situation which involves excessive medicine
producing and selling enterprises and disorder, the people`s governments at
various levels and the departments in charge of medicine production and sales,
the departments for the administration of health and the departments for the
administration of industry and commerce, shall, according to law, strictly
enforce procedures for examining the conditions and for the examination and
approval of the establishment of medicine producing and selling enterprises.
In case of failure to conform with the conditions for setting up or with the
procedures for examination and approval, the departments in charge of medicine
production and sales, the departments for administration of health and the
departments for administration of industry and commerce shall not grant the
approval for setting up. Those enterprises which are already operating but
have not satisfied the conditions for examination shall be banned according to
law.
Health administration departments shall organize investigations into
various types of medicine produced by existing production enterprises, and
regarding medicine which are found to be producing unproven effectiveness,
giving adverse reactions or endangering the health of the people for other
reasons, the reference number for approval thereof shall be timely withdrawn.
The department in charge of medicine production and sales, when processing the
applications for establishing medicine-producing enterprises, shall devote
particular attention to ascertaining whether the types of medicine to be
produced are new medicines or the types of important medicine the country is
to develop, and shall grant no approval for such enterprises without the new
medicine being approved by the department for administration of health under
the State Council or whose medicine is not the type of important medicine the
country is to develop. With regard to the medicine which is reproduced at low
level, directives shall be given to the enterprises for them to make timely
adjustment of the structure of products. Enterprises engaged in wholesale
distribution of medicine shall be examined to determine whether they have the
ability to supply within 24 hours the types of medicine listed in the national
catalogue for basic medicine, and the ability to supply medicine to specially
designated regions or units appointed by the departments in charge of medicine
production and sales under the local people’s governments at the county level
or above. Wholesale of medicine enterprises which do not possess the ability
to supply the medicine referred to above shall be banned from engaging in the
wholesale business according to law.
Individual industry and commerce may, according to law, apply for retail
business, but shall not engage in production and wholesale distribution
(except the wholesale of traditional Chinese herbs in the specialized markets
for traditional Chinese herbs approved according to law).
All those engaged in medicine production must, according to the legal
procedures, obtain the “qualification certificate for medicine-producing
enterprise”, the “permit certificate for medicine-producing enterprise” and
the “business license”. All those engaged in the wholesale and retail sale of
medicine must, according to the legal procedures, obtain the “qualification
certificate for medicine-selling enterprise”, the “permit certificate for
medicine-selling enterprise” and the “business license”. All those already in
operation without the mandated certificates and licenses must be banned
according to the law.
Applications for setting up medicine-producing enterprises or
medicine-selling enterprises for wholesale, must be examined and certified by
the departments in charge of the production and sale of medicine under the
people’s governments of the provinces, autonomous regions and municipalities
under the Central Government that issue the “qualification certificate for
medicine-producing enterprise” or the “qualification certificates for
medicine-selling enterprise”. Then they may apply to the department for the
administration of health at the same level for the “permit certificate for
medicine-producing enterprise” or the “permit certificate for the
medicine-selling enterprise”. Without the “qualification certificate for
medicine-producing enterprise”, or the “qualification certificate for
medicine-selling enterprise” issued by the department in charge of the
production and sale of medicine upon examination and agreement, the department
for the administration of health shall not accept the application. Without
obtaining the “qualification certificate for medicine-producing enterprise”,
the “permit certificate for medicine-producing enterprise” or the
“qualification certificate for medicine-selling enterprise”, the “permit
certificate for medicine-selling enterprise”, the department for the
administration of industry and commerce shall not check and issue the business
license.
The applications for retail of medicine business by enterprises, or
individual industry and commerce, shall be examined by the departments in
charge of the production and sale of medicine under the people’s governments
of the autonomous prefectures, cities or counties, according to the needs for
medicine and the program for the retail of medicine network within their
regions, and if agreed upon examination, the “qualification certificate for
medicine-selling enterprise” shall be issued. The retail of medicine
enterprise, and the individual industry and commerce, shall take the
“qualification certificate for medicine-selling enterprise” to the departments
for the administration of health at the same level for application and, after
obtaining the “permit certificate for medicine-selling enterprise”, may apply
to the departments for the administration of industry and commerce for the
issuance of the business license.
Certificates and licenses that have not been issued according to the
procedures for examination and approval referred to above by the departments
in charge of the production and sale of medicine, the departments for the
administration of health and the departments for the administration of
industry and commerce, become invalid, and the losses caused therefrom shall
be compensated by the issuing departments according to law, and the persons in
charge who are directly responsible and the persons directly responsible shall
be investigated for responsibility.
(2) The order for medicine production and sale should be rectified and
standardized, and the administration of the sale of medicine shall be
strengthened according to law.
Those who have not obtained, according to law, the “qualification
certificate for medicine-producing enterprise”, the “permit certificate for
medicine-producing enterprise” or the “qualification certificate for
medicine-selling enterprise”, the “permit certificate for medicine-selling
enterprise” and the business license, shall not be engaged in the production
and sale of medicine. The units and individuals engaged on their own decision
in the production and wholesale of medicine shall be resolutely banned.
Enterprises engaged in the production and wholesale distribution of medicine
shall not be contracted by individuals for business.
Medical institutions and medicine-selling enterprises must purchase
medicine from enterprises that have obtained lawful qualifications for
medicine production and sales, and are strictly prohibited from purchasing
medicine from unlawful dealers.
The supply of medicine to medical clinics in rural areas shall be the
responsibility of the medicine wholesalers and the township’s hospital
entrusted by the wholesalers jointly appointed by the departments in charge of
medicine production and sales and those for the administration of health under
the local people’s governments at the county level.
The preparations manufactured by medical institutions are limited to those
needed for clinical purposes and scientific research conducted by the units
themselves, and which are not supplied or inadequately supplied in the
markets. The sale in a disguised manner of such products shall be strictly
prohibited. Medical institutions shall not, in any disguised manner, engage in
the wholesale business.
Fair competition shall be practiced in the purchase and sale of medicine
between the production and management of medicine enterprises and medical
institutions, and in purchases and sales, malpractices such as rebates, or
bribery and requesting bribes are prohibited.
Departments responsible for the administration of health shall strictly
examine the contents of publicity materials and advertisements and in
coordination with the relevant departments, shall, according to law, punish
illegal acts such as advertising medicine in violation of regulations,
unfounded propaganda regarding effectiveness and other acts which mislead
patients.
(3) The specialized markets for the traditional Chinese herbs should be
rectified and standardized.
The state prohibits the setting up of trade fair markets for medicine,
except specialized markets for traditional Chinese herbs, and prohibits in the
specialized markets for traditional Chinese herbs the sale of traditional
Chinese herbs and ready-made medicine, tablets of Chinese herbs, medicine of
chemical raw materials and its preparations, antibiotics, biochemical
medicine, radiate medicine, serum vaccine, blood products and diagnostic
medicine of which sales are restricted as stipulated by the state.
The specialized markets for traditional Chinese herbs must be set up in
selected principal producing or distributing places of traditional Chinese
herbs according to overall plans drawn up by the department under the State
Council in charge of production and sales of medicine, and must also be
examined and approved by the department in charge of the production and sales
of medicine, the department for the administration of health and the
department for the administration of industry and commerce under the State
Council. The local people’s governments at various levels and the other
departments are not authorized to examine and approve the establishment of
specialized markets for traditional Chinese herbs.
The existing specialized markets for traditional Chinese herbs shall be
rectified, and the criteria shall be formulated by the department in charge of
the production and sales of medicine, the department for the administration of
health and the department for the administration of industry and commerce
under the State Council. Specialized markets for traditional Chinese herbs
which have already been set up but are not in compliance with the criteria
shall be closed without exception. Any other trade fair markets for medicine
except specialized markets for traditional Chinese herbs that have been set up
without proper authorization shall be banned according to law by the local
people’s governments.
Traditional Chinese herbs being sold in trade fair markets for
agricultural products shall be supervised strictly by the department for the
administration of health. Those who sell types of traditional Chinese herbs on
their own decision that are prohibited by the state from being sold and the
medicine other than the traditional Chinese herbs without certificate in trade
fair markets for agricultural products in violation of the “Law on the
Administration of Medicine” shall be investigated and punished by the relevant
departments according to the provisions of the “Law on the Administration of
Medicine”.
(4) The protection for the intellectual property rights for medicine shall
be strengthened, and enterprises are encouraged to research in and develop new
medicine.
The department for administration of health and the department in charge
of the production and sales of medicine under the State Council, shall develop
practical plans for encouraging enterprises, scientific research units,
universities and colleges to promote research and develop new medicine.
The “Regulations on the Protection of the Types of Chinese Medicine”
issued by the State Council shall be further implemented in various places.
The types of Chinese medicine already listed for national protection shall not
be imitated and manufactured by enterprises without the protection
certificate. The relevant departments and examining and appraising organs
shall conscientiously do a good job to protect the types of Chinese medicine
in order to promote development of Chinese medicine.
3. There should be an intensified crackdown on criminal activities
involving the production and sales of false and inferior medicine. In
addition, investigations should be conducted into cases involving violations
of law and discipline with regard to the production and sales of false and
inferior medicine. These activities shall be considered of great importance
with regard to combating corruption.
In order to check resolutely law-breaking and criminal activities in
producing and selling false and inferior medicine, local people’s governments
at various levels and the relevant departments, shall carry on further blows
on the law-breaking and criminal activities in producing and selling false and
inferior medicine. In cracking severely the law-breaking and criminal
activities in producing and selling false and inferior medicine, they should
strictly enforce laws and intensify law enforcement regarding these issues.
The national and local coordinating institutions for “striking the false” at
various levels shall organize the relevant departments of health, medicine,
administration of industry and commerce, technical supervision and public
security in investigating into and dealing with the law-breaking and criminal
activities in producing and selling false and inferior medicine, which shall
be made an important task for “striking the false”. The criminal elements
producing and selling false and inferior medicine shall be resolutely punished
according to the “Decision of the Standing Committee of the National People’s
Congress on Punishments for Crimes in Producing and Selling False and Inferior
Commodities”. Influential and typical cases shall be singled out for exposure.
The people’s governments at various levels shall treat cases of producing
and selling false and inferior medicine and other instances in violation of
law and discipline as important issues to be addressed in combating
corruption. Therefore, supervisory departments of the people’s governments at
various levels shall, according to the provisions of the “Regulations of the
People’s Republic of China on Administrative Supervision”, exercise
supervision over the implementation of law and administrative regulations by
staff workers of the departments for administration of health, the departments
in charge of the production and sales of medicine, the departments for the
administration of industry and commerce and the departments for technical
supervision. Those who have abused their power, been negligent in their
duties, acted illegally by deception for personal interests and acted in
violation of law and discipline through other means, must be dealt with
severely according to law. For those engaged in providing unjustifiable
protection and support for criminal activities in producing and selling false
and inferior medicine for the interests of their own districts or departments
and causing serious losses to the people, the leaders of the local governments
and the relevant departments as well as the persons in charge and the persons
directly responsible must be investigated for responsibility according to law.
And if the case is so serious as to constitute a crime, the offender must be
investigated for criminal responsibility according to law.
4. The harmonious cooperation among the departments of the governments
shall be strengthened, and the administration of medicine shall be raised to a
higher level.
The administration of medicine is a complicated and systematic project,
and the relevant departments of the people’s governments at various levels
must jointly do a good job in the administration of medicine according to the
division of duties, by shouldering their respective duties, and through mutual
support and full cooperation.
The departments for the administration of health at various levels are the
government’s functional departments that exercise supervision and
administration of medicine. The people’s governments at various levels and the
relevant departments shall fully support and assist the departments for the
administration of health in exercising, according to law, its function with
respect to its responsibility to supervise and administer medicine.
The offices of the State Administration of Medicine and the State
Administration of Traditional Chinese Medicine and Pharmacy are the
departments of the State Council in charge of medicine production and sales,
and the local departments in charge of medicine production and sales at
various levels shall, according to law, exercise the governmental function of
administration of medicine production and sales. The medicine-producing and
selling enterprises shall, except otherwise provided by the state, be taken
into the scope of the administration of the medicine industry, irrespective of
the forms of ownership and the subordinating relationship. The people’s
governments at various levels and the relevant departments thereof shall fully
support and assist the departments in charge of medicine production and sales
in the administration of medicine according to law.
The administration of industry and commerce and the departments for
technical supervision and public security, shall strengthen the administration
of medicine markets according to their respective duties along with the
departments for the administration of health and the departments in charge of
medicine production and sales.
In case of disorder in the administration of medicine caused by
quarreling, leaving duties and responsibility for others and undermining each
other’s work, the leaders of the relevant administrative departments shall be
investigated for responsibility according to law.
The departments for the administration of health and the departments in
charge of medicine production and sales must, according to the provisions of
the Central Committee of the Communist Party of China and the State Council,
put into practice the separation of government from enterprises, and shall not
use administrative rights to interfere with the enterprises’ production and
sales. All malpractices applied in purchasing and selling medicine must be
resolutely stopped. Fairness and justice, honesty and authority in official
duties of the administrative justice departments and the departments in charge
of the industry shall be maintained.
The State Council shall organize the relevant departments in the
performance of an in-depth study to revise and perfect the law and regulations
on the administration of medicine, further put in order the administrative
system for medicine, reform the administrative system for the price of
medicine, perfect the supervising system for the quality of the medicine,
further raise the country’s level for the administration of medicine and
promote continued, fast and healthy development of the country’s medicine.
The people’s governments of the provinces, autonomous regions,
municipalities under the Central Government and relevant departments of the
State Council shall, according to the requirements of this Circular, take
practical measures to carry out an overall rectification in respect of the
present situation regarding the administration of medicine within their
regions and departments, and submit reports on the rectification to the State
Council before March 1, 1995.
| Category |
FINANCE |
Organ of Promulgation |
The Standing Committee of the National People’s Congress |
Status of Effect |
In Force |
| Date of Promulgation |
1994-08-31 |
Effective Date |
1995-01-01 |
|
|
|
Audit Law of the People’s Republic of China |
Contents
Chapter I General Provisions
Chapter II Audit Institutions and Auditors
Chapter III Functions and Responsibilities of Audit Institutions
Chapter IV Limits of Authority of Audit Institutions
Chapter V Audit Procedures
Chapter VI Legal liability
Chapter VII Supplementary Provisions
(Adopted at the Ninth Meeting of the Standing Committee of the Eighth
National People’s Congress on August 31, 1994, promulgated by Order No.32 of
the President of the People’s Republic of China on August 31, 1994 and
effective as of January 1, 1995)
Contents
Chapter I General Provisions
Chapter II Audit Institutions and Auditors
Chapter III Functions and Responsibilities of Audit Institutions
Chapter IV Limits of Authority of Audit Institutions
Chapter V Audit Procedures
Chapter VI Legal Liability
Chapter VII Supplementary Provisions
Chapter I General Provisions
Article 1 This Law is formulated in accordance with the Constitution,
with a view to strengthening the State supervision through auditing,
maintaining the financial and economic order of the country, promoting the
building of a clean government and ensuring the sound development of the
national economy.
Article 2 The State shall practise a system of supervision through
auditing. The State Council and the local people’s governments at or above
the county level shall establish audit institutions.
Budgetary revenues and expenditures of various departments of the State
Council, of the local people’s governments at various levels and their
departments, financial revenues and expenditures of State-owned monetary
organizations, enterprises and institutions, as well as other budgetary
revenues and expenbditures and financial revenues and expenditures subject
to auditing according to this Law, shall be supervised through auditing in
accordance with the provisions of this Law.
Audit institutions shall, according to law, supervise through auditing
the authenticity, legality and beneficial results of the budgetary revenues
and expenditures or financial revenues and expenditures specified in the
preceding paragraph.
Article 3 Audit institutions shall conduct supervision through auditing
in accordance with the functions and powers, as well as procedures prescribed
by law.
Article 4 The State Council and the local people’s governments at or
above the county level shall annually present to the standing committees of
the people’s congresses at the corresponding levels the audit reports
prepared by audit institutions on budget implementation and other budgetary
revenues and expenditures.
Article 5 Audit institutions shall independently exercise their power of
supervision through auditing in accordance with the law, and be free from
interference by any administrative organ, public organization or individual.
Article 6 Audit institutions and auditors shall, in handling audit
matters, be objective and fair, practical and realistic, clean and honest,
and keep Secrets.
Chapter II Audit Institutions and Auditors
Article 7 The State Council shall establish the National Audit
Administration to take charge of the audit work throughout the country
under the leadership of the Premier of the State Council. The Auditor-General
shall be the administrative leader of the National Audit Administration.
Article 8 Audit institutions of the people’s governments of provinces,
autonomous regions, municipalities directly under the Central Government,
cities divided into districts, autonomous prefectures, counties, autonomous
counties, cities not divided into districts and municipal districts shall be
in charge of the audit work within their respective administrative areas
under the respective leadership of governors of provinces, chairmen of
autonomous regions, mayors, prefectural heads, or heads of counties and
districts as well as under the leadership of audit institutions at the next
higher levels.
Article 9 Local audit institutions at various levels shall be
responsible and report on their work to the people’s governments at the
corresponding levels and to the audit institutions at the next higher levels,
and their audit work shall be directed chiefly by the audit institutions at
the next higher levels.
Article 10 Audit institutions may, as required by work, appoint resident
audit officers within areas under their jurisdiction.
Resident audit officers shall, according to the authorization of audit
institutions, conduct audit work in accordance with the law.
Article 11 Funds necessary for audit institutions to perform their
functions shall be included in the budgets of the governments and guaranteed
by the people’s governments at the corresponding levels.
Article 12 Auditors shall possess the professional knowledge and ability
suitable to the audit work they engage in.
Article l3 In handling audit matters, if auditors have an interest in
the auditees or the audit items, they shall withdraw.
Article 14 Auditors shall have the obligation to guard State secrets and
the auditees’ business secrets they have come to know in performing their
functions.
Article 15 Auditors shall be protected by law in performing their
functions in accordance with the law.
No organization or individual may refuse or obstruct auditors’
performance of their functions in accordance with the law, or retaliate
against auditors.
Persons in charge of audit institutions shall be appointed or removed in
accordance with legal procedures. None of them may be removed or replaced at
random unless they are found guilty of illegal acts, or negligent of duties
or no longer qualified for the post.
Chapter III Functions and Responsibilities of Audit Institutions
Article 16 Audit institutions shall exercise supervision through
auditing over the budget implementation, final accounts and management and
use of extra-budgetary funds of departments (including units directly
subordinate to them) at the corresponding levels and of the people’s
governments at lower levels.
Article 17 The National Audit Administration shall, under the leadership
of the Premier of the State Council, exercise supervision through auditing
over the implementation of the central budget and submit audit reports
thereon to the Premier.
Local audit institutions at various levels shall, under the respective
leadership of the governors of provinces, chairmen of autonomous regions,
mayors, prefectural heads and heads of counties or districts as well as under
the leadership of audit institutions at the next higher levels, exercise
supervision through auditing over the budget implementation at the
corresponding levels and submit audit reports to the people’s governments at
the corresponding levels and to the audit institutions at the next higher
levels.
Article 18 The National Audit Administration shall exercise supervision
through auditing over the financial revenues and expenditures of the Central
Bank.
Audit institutions shall exercise supervision through auditing over the
assets, liabilities, profits and losses of the State-owned monetary
organizations.
Article 19 Audit institutions shall exercise supervision through
auditing over the financial revenues and expenditures of State institutions.
Article 20 Audit institutions shall exercise supervision through
auditing over the assets, liabilities, profits and losses of the State-owned
enterprises.
Article 2l Audit institutions shall conduct audit in a regular and
planned way with regard to the State-owned enterprises that are vital to the
national economy and the people’s livelihood, or the State-owned enterprises
that heavily depend upon government subsidies, or have large amounts of
losses, and other State-owned enterprises designated by the State Council or
the people’s governments at the corresponding levels.
Article 22 Supervision through auditing over the entcrprises wieh
State-owned assets controlling their shares or playing a leading role shall
be prescribed by the State Council.
Ardcle 23 Audit institutions shall exercise supervision through auditing
over the budget implementation and final accounts of the State’s construction
projects.
Article 24 Audic institutions shall exercise supervision through
auditing over the financial revenues and expenditures of the social security
funds, funds from public donations and other relevant funds and capital
managed by governmental departmenes or by public organizations authorizcd by
the governments.
Article 25 Audit institutions shall exercise supervision through
auditing over the financial revenues and expenditures of projects with aids
or loans provided by international organizations or governments of other
countries.
Article 26 In addition to the audit matters specified in this Law, audit
institutions shall, in accordance with the provisions of this Law as well as
relevant laws, or administrative rules and regulations, exercise supervision
through auditing over the matters that shall be audited by audit institutions
as stipulated by other laws, administrative rules and regulations.
Article 27 With regard to particular matters relating to the State’s
budgetary revenues and expenditures, audit institutions shall have the power
to carry out special investigations through auditing among relevant
localities, departments and units and report the results there of to the
people’s governments at the corresponding levels and to the audit
institutions at the next higher levels.
Article 28 Audit institutions shall determine their audit jurisdiction
on the basis of the auditees’ subordinate relations in budgetary and
financial affairs or the supervisory and managerial relations with respect to
the State-owned assets of the auditees.
Where a dispute arises on audit jurisdiction between audit institutions,
the matter shall be determined by an audit institution superior to both
disputing parties.
Audit institutions at higher levels may authorize audit institutions at
lower levels to audit the matters which are within the jurisdiction of the
former and specified in paragraph 2 of Article 18 to Article 25 in this Law.
Audit institutions at higher levels may directly audit the major matters
under the jurisdiction of audit institutions at lower levels. However,
unnecessary repetitive audits shall be avoided.
Article 29 Departments of the State Council and of the local people’s
governments at various levels, State-owned monetary organizations,
enterprises and institutions shall establish and improve their internal
auditing systems in accordance with the relevant regulations of the State.
Such internal auditing shall be subject to the professional guidance and
supervision of audit institutions.
Article 30 Public audit firms that independently conduct public audit
according to law shall be guided, supervised and managed in accordance with
relevant laws and regulations of the State Council.
Chapter IV Limits of Authority of Audit Institutions
Article 31 Audit institutions shall have the power to require auditees
to submit, in accordance with the relevant regulations, their budgets or
plans for financial revenues and expenditures, statemen about budget
implementation, final accounts and financial reports, audit reports produced
by public audit firms and other information relating to their budgetary
revenues and expenditures or financial revenues and expenditures. Auditees
shall not refuse to do so, or delay the submission or make false reports.
Article 32 Audit institutions shall, in conducting audit, have the power
to examine the accounting documents, account books, accounting statements and
other information and assets relating to budgetary revenues and expenditures
or financial revenues and expenditures of the auditees, and the auditees
shall not refuse such examination.
Article 33 Audit institutions shall, in conducting audit, have the power
to carry out investigations among units or individuals concerned of issues
relating to audit matters and obtain relevant testimonial material. The units
and individuals concerned shall support and assist the audit institutions in
their work by providing them with truthful information and relevant
testimonial material.
Article 34 When audit iastitutions conduct audit, the auditees shall not
transfer, conceal, falsify or destroy their accounting documents, account
books, accounting statements or other information relating to their budgetary
revenues and expenditures or financial revenues and expenditures, and shall
not transfer or conceal the assets that are in their possession but obtained
in violation of the regulations of the State.
Audit institutions shall have the power to stop the auditees’ ongoin acts
of budgetary revenues and expenditures or financial revenues and expenditures
violating the regulations of the State. If they fail in stopping such acts,
they shall, with the approval of the responsiblc persons of audit
institutions at or above the county level, notify the financial departments
and the competent authorities to suspend allocation of the funds directly
related to the acts of budgetary revenues and expenditures or financial
revenues and expenditures violating the regulations of the Seate or to
suspend the use of the funds already allocated. However, adoption of the
above-mentioned measures shall not hinder the lawful business activities,
production and operation of the auditees.
Article 35 If audit institutions consider that the regulations of the
competent departments at higher levels on budgetary revenues and expenditures
or financial revenues and expenditures implemented by the auditees contravene
the law or the administrative rules and regulations, they shall suggest that
the competent departments concerned make rectifications. If the competent
departments concerned do not make rectifications, the audit institutions
shall refer the matter to the competent organs for disposition according
to law.
Article 36 Audit institutions may issue circulars about their audit
results to the relevant governmental departments or publish such results to
the public.
Audit institutions shall, in circulating or publishing audit results,
keep State secrets and business secrets of the auditees in accordance with
the law and observe the relevant regulations of the State Council.
Chapter V Audit Procedures
Article 37 Audit institutions shall form audit teams according to the
audit matters specified in the plans of the audit projects and shall serve
advices of audit on the auditees three days prior to the performance of
audit.
The auditees shall cooperate with audit institutions in their work and
provide necessary working conditions.
Article 38 Auditors shall conduct audit and obtain testimonial material
by means of examining accounting documents, account books, accounting
statements, and documents and data relating to the audit items, checking
cash, negotiable securities and other property, and making investigations
among units and individuals concerned.
Auditors shall, in making investigations among units and individuals
concerned, produce their auditor’s certificates and copies of advices of
audit.
Article 39 Audit teams shall, after the performance of audit, submit
audit reports to the audit institutions. However, prior to the submission,
they shall solicit opinions of the auditees. The auditees shall, within
ten days from the date of receiving the audit reports, send their comments
in writing to the audit teams or audit institutions.
Article 40 Audit institutions shall, after examining the audit reports,
give evaluaeions of the audit matters and issue auditor’s opinions. They
shall, within the sphere of their statutory functions and powers, make audit
decisions on acts of budgetary revenues and expenditures or financial
revenues and expenditures violating the regulations of the State that must be
dealt with or punished according to law, or they shall make suggestions
concerning disposition or punishment to the competent authorities.
Audit institutions shall, within 30 days from the date of receiving the
audit reports, serve auditor’s opinions and audit decisions on the auditees
and units concerned.
Audit decisions shall enter into force from the date when they are duly
served.
Chapter VI Legal liability
Article 41 If an auditee, in violation of this Law, refuses or delays
provision of information relating to audit matters, refuses or hinders
examination, the audit iastitution concerned shall order a rectification and
may circulate a notice of criticism and issue a warning. Whoever refuses to
make rectification shall be investigated for responsibility in accordance
with the law.
Article 42 When an audit institution discovers that an auditee, in
violation of the provisions of this Law, transfers, conceals, falsifies or
destroys accounting documents, account books, accounting statements or other
material relating to budgetary revenues and expenditures or financial
revenues and expenditures, the audit institution shall have the power to
stop such acts.
If an auditee commits any of the acts specified in the preceding
paragragh, and if the audit institution considers that the persons in charge
and other persons who are held directly responsible should be given
administrative sanctions according to law, the audit institution shall put
forward suggestions to this effect. The auditee or its superior organ or the
supervisory organ shall make decisions without delay in accordance with the
law. If the case coastitutes a crime, it shall be investigated for criminal
responsibility by the judicial organ according to law.
Article 43 If an auditee, in violation of this Law, transfers or
conceals assets gained unlawfully, the audit institution, the people’s
government or the competent authorities shall have the power to stop such
acts within the sphere of its statutory functions and powers or appeal to the
court for adoption of preservative measures.
If an auditee commits any of the acts specified in the preceding
paragragh, and if the audit institution considers that the persons in charge
and other persons who are held directly responsible should be given
administrative sanctions according to law, the audit institution shall put
forward suggestions to this effect. The auditee or its superior organ or the
supervisory organ shall make a decision without delay in accordance with the
law. If the case constitutes a crime, it shall be investigated for criminal
responsibility by the judicial organ according to law.
Article 44 With respect to the acts violating the budgets or other acts
of budgetary revenues and expenditures violating the regulations of the State
committed by departments (including units directly subordinate to them) at
the corresponding levels or by the governments at lower levels, audit
institutions, the people’s governments or the competent authorities shall
deal with them within the sphere of their statutory functions and powers and
in accordance with the laws and administrative rules and regulations.
Article 45 With respect to the acts of financial revenues and
expenditures violating the regulations of the State committed by an auditee,
the audit institution, the people’s government or the competent authorities
shall, within the sphere of its statutory functions and powers and in
accordance with the laws and administrative rules and regulations, order the
auditee to turn over within a time limit the part of the revenues that should
be turned over, to return within a time limit the income gained unlawfully or
the State-owned assets seized illegally or take other rectifying measures,
and may impose punishment on the auditee according to law.
Article 46 With respect to the persons in charge and other persons who
are held directly responsible for the acts of budgetary revenues and
expenditures or financial revenues and expenditures committed by the auditee
in violation of the regulations of the State, if the audit institution
considers that they should be given administrative sanctions according to
law, the audit institution shall put forward suggestions to this effect. The
auditee or its superior organ or the supervisory organ shall make a decision
without delay in accordance with the law.
Article 47 If an auditee violates the provisions of relevant laws or
administrative rules and regulations governing budgetary revenues and
expenditures or financial revenues and expenditures and if the case
constitutes a crime, the auditee shall be investigated for criminal
responsibility according to law.
Article 48 Where anyone retaliates or makes a false charge against
an auditor, if the case constitutes a crime, he shall be investigated for
criminal responsibility according to law; if the case does not constieute
a crime, he shall be given an administrative sanction.
Article 49 Where an auditor abuses his functions and powers, engages in
malpractices for selfish ends, or neglects his duties, if the case
constitutes a crime, he shall be investigated for criminal responsibility;
if the case does not constitute a crime, he shall be given an administrative
sanction.
Chapter VII Supplementary Provisions
Article 50 Audit regulations for the Chinese People’s Liberation Army
shall be formulated by the Central Military Commission in accordance with
this Law.
Article 51 This Law shall enter into force as of January 1, 1995.
The Audit Regulations of the People’s Republic of China promulgated by the
State Council on November 30, 1988 shall be annulled therefrom.
| Category |
CUSTOMS |
Organ of Promulgation |
The State Council |
Status of Effect |
Invalidated |
| Date of Promulgation |
1994-10-16 |
Effective Date |
1994-10-16 |
Date of Invalidation
|
2000-02-12 |
|
Official Reply of the State Council to the Announcement Concerning Dealing Severely With Cigarette Smuggling and Rectifying the Cigarette
Market |
ANNOUNCEMENT CONCERNING DEALING SEVERELY WITH CIGARETTE SMUGGLING AND
(Approved by the State Council on October 16, 1994) (Editor’s Note: This
Official Reply of the State Council to the Announcement Concerning Dealing
Severely with Cigarette Smuggling and Rectifying Cigarette Market has been
annulled by Official Reply of the State Council to the circular Concerning
Dealing Severely with Cigarette Smuggling and Reatifying Cigarette Market
Promulgated by Correspondence of the State Council No.[2000]13 of the State
Council Document on February 12, 2000)
The State Tobacco Monopoly Bureau, the Ministry of Public Security,
the State Administration for Industry and Commerce and the General
Administration of Customs:
The State Council has approved the “Announcement Concerning Dealing
Severely With Cigarette Smuggling and Rectifying the Cigarette Market”. You
are hereby instructed to promulgate and implement said Announcement.
ANNOUNCEMENT CONCERNING DEALING SEVERELY WITH CIGARETTE SMUGGLING AND
RECTIFYING THE CIGARETTE MARKET (Promulgated on October 16, 1994, by the
State Tobacco Monopoly Bureau, the Ministry of Public Security, the State
Administration for Industry and Commerce and the General Administration
of Customs)
The following Announcement is hereby issued for the purpose of safeguarding State and consumer interests,
dealing severely with illegal and
criminal activities related to cigarette smuggling, rectifying the cigarette
market and protecting the legal rights of the national cigarette industry and
related management.
1. Enterprises, institutions and offices, organizations or individuals
engaged in illegal activities related to smuggling cigarettes, or otherwise
illegally purchasing, transporting, mailing, selling or storing smuggled
cigarette shall be severely punished in accordance with the related law and
regulations enacted by the State.
2. Cases involving cigarette smuggling activities which constitute a
crime shall be bound over to judicial departments for investigation of
criminal responsibility in accordance with the law; Relevant executive
departments shall handle cases in which activities do constitute a crime by
confiscating smuggled goods and income earned from illegal transactions, and
offenders will be subject to a prescribed fine.
3. Parties transporting imported cigarette across provinces (regions or
cities) inside the borders of China shall hold a Certificate of Transport
Permit issued by the State Tobacco Monopoly Bureau; Parties transporting
imported cigarettes within a province (region or city) shall have a
Certificate of Transport Permit issued by the Provincial Tobacco Monopoly
Bureau. Imported cigarettes, excluding tobacco products supervised and
administered by Customs, transported without a Certificate of Transport Permit
shall be confiscated by the relevant executive department, and all parties
involved shall be subject to a prescribed fine and all means of transport
shall be confiscated.
4. Units responsible for the management of legally imported cigarettes
shall hold a special permit for management of tobacco sales issued by the
department responsible for tobacco monopoly; Units responsible for the
management of confiscated illegally imported cigarettes shall hold a license
as an “Enterprise Designated to Manage Confiscated Illegally Imported
Cigarette” approved and issued by the State Tobacco Monopoly Bureau, or a
similar license approved and issued by the Provincial Tobacco Monopoly Bureau
with the authorization of the State Tobacco Monopoly Bureau. Said units shall
replenish stocks via regulated channels. Units or individuals illegally
managing such activities without the prescribed permits shall be penalized,
all illegal goods shall be confiscated and those found in violation shall be
subject to a maximum fine equal to five times the value of the goods. In
serious cases, the relevant department of administration of industry and
commerce shall revoke management licenses in accordance with the law.
5. Enterprises, institutions and offices, organizations or individuals
providing facilities for the storage, transport and mailing of smuggled
cigarettes, or eventual sale of smuggled cigarette shall be penalized. All
illegal income shall be confiscated by the executive department and violators
will subject to a maximum fine equal to twice the amount of illegal income;
Violators who have earned no illegal income shall be subject to a fine in
accordance with the seriousness of the case.
6. Illegally imported cigarette confiscated by executive departments shall
be handed over to a tobacco auction company established or authorized by the
State Tobacco Monopoly Bureau. Said auction company will be permitted to sell
subject products to the units holding licenses as an “Enterprise Designated to
Manage Confiscated Illegally Imported Cigarette” (Wholesale); designated
enterprises (wholesale) are also permitted to wholesale subject products to
units holding licenses as an “Enterprises Designated to Manage Confiscated
Illegally Imported Cigarette” (Retail). Those found in violation of the
aforementioned regulations shall be penalized. Subject goods shall be
confiscated by the relevant executive department and violators shall be
subject to a maximum fine of three times the value of subject goods. The
management qualifications of companies involved in serious cases shall be
revoked. Small quantities of illegally imported cigarettes confiscated in
markets shall be handed over to fixed sales enterprises designated by the
local department for tobacco monopoly. Prior to any auction, or wholesale or
retail activities, the administrative department for tobacco monopoly shall
label all packages or cartons containing confiscated illegally imported
cigarettes as “Confiscated Smuggled Cigarettes.”
7. In accordance with related regulations, rewards based on merit shall
be given to units or individuals who have reported, assisted in investigations
to prevent smuggling activities and sales of smuggled cigarettes. Those found
guilty of resisting, viciously attacking or otherwise threatening the
well-being of executive personnel during the process of checking and
preventing smuggling activities, or inspecting markets, shall, in accordance
with the seriousness of the case, be investigated for criminal responsibility
according to law, or be penalized in accordance with provisions outlined in
the “Regulations of the People’s Republic of China on Administrative Penalty
for Public Security”.
8. This Announcement shall become effective on the date of promulgation.
|
The Ministry of Finance
Circular of the Ministry of Finance Concerning Printing and Distributing the Rules for the Implementation of the Interim Regulations
of the People’s Republic of China on Business Tax
CaiFaZi [1993] No.40
December 25, 1993
The ministries and directly subordinate institutions of the State Council, the people’s governments of various provinces, autonomous
regions, municipalities directly under the Central Government and municipalities separately listed on the State plan, the departments
(bureaus) of finance of various provinces, autonomous regions, municipalities directly under the Central Government and municipalities
separately listed on the State plan and the branches of the State Administration of Taxation:
Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Business Tax is now issued to you for
earnest implementation. Attachment:Rules for the Implementation of the Interim Regulations of the People’s Republic of China on Business Tax
Article 1
The Rules have been formulated according to Article 16 of the Interim Regulations of the People’s Republic of China on Business Tax
(hereinafter referred to as “Regulations” ).
Article 2
The term “taxable labor services” mentioned in Article 1 of the Regulations refers to taxable items of labor services in areas of
transport, construction, finance, insurance, posts and telecommunications, cultural and sports, recreation and service.
Labor services involved in processing and repairs do not belong to taxable items (hereinafter referred to as “non-taxable labor services”).
Article 3
“Transactions of foreign exchange, negotiable securities and futures” mentioned in Subparagraph 5 of Article 5 of the Regulations
refer to the transactions conducted by banks and non-banking financial organizations in foreign exchange, negotiable securities and
futures. Business turnover for transactions of foreign exchange, negotiable securities or futures conducted by non-financial organizations
or individuals is free from business tax.
The term “futures” mentioned in Subparagraph 5 of Article 5 of the Regulations refer to non-goods futures. The business turnover
for transaction of non-goods futures. The business turnover for transaction of non-goods futures is free from business tax.
Article 4
The term “providing taxable labor services, transfer of intangible assets or sales of real assets” as addressed in Article 1 of the
Regulations refers to acts of providing taxable labor services, transferring intangible assets or selling real assets for payment.
But the taxable labor services provided by employees of units or individual business people for the units and their employers are
excluded.
The term “payment” mentioned in the preceding paragraph includes money, goods or other economic interests.
If a unit or an individual builds by own effort a building structure for sale, effort for building the structure is regarded as a
kind of taxable labor services.
The transfer of limited equity ownership or permanent right of use of movable property or the donation of movable property by a unit
to others are regarded as selling real estate.
Article 5
A sale involving both taxable labor services and goods is regarded as a mixed sale. A mixed sale made by an enterprise, an enterprising
unit or an individual engaging in production, wholesale or retail sale is regarded as a sale of goods and is free from business tax.
A mixed sale made by other units and individuals is regarded as a provision of taxable labor services and is thus subject to business
tax.
Whether a sale of a taxpayer can be regarded as a mixed sale shall be subject to the determination of tax collecting agencies under
the State Tax Administration.
The term “goods” mentioned in the first paragraph of this article refers to tangible movable assets, including power, thermal power
and gas.
The term “an enterprise, an enterprising unit, a unit or an individual engaging in production, wholesale or retail sales” mentioned
in the first paragraph of this article includes enterprises, enterprising units and individuals mainly engaging in production, wholesale
or retail sales but also concurrently providing taxable labor services.
Article 6
A taxpayer that engaged concurrently in taxable labor services and goods or non-taxable labor services should keep a separate accounting
of the sales volumes of goods or taxable and non-taxable labor services. If the accounting cannot be accurately separated, the value-added
tax shall be levied in consolidation on non-taxable labor services and goods or taxable labor services and no business tax is levied.
Whether or not the value-added tax will be levied in consolidation for a taxpayer concurrently engaging in non-taxable labor services
shall be determined by the tax collecting organs of the State Tax Administration.
Article 7
Except otherwise provided for in Article 8 of the Rules, one of the following cases is regarded as providing taxable labor services
or transferring intangible assets or selling immovable properties within the territory of the People’s Republic of China:
1.
Labor services are provided within the territory of China:
2.
Passengers or goods within the territory of China are transported out of the boundaries;
3.
Organizing passengers within the territory of China for foreign tours;
4.
The intangible assets transferred are used within the territory of China;
5.
The immovable properties sold are located inside the territory of China.
Article 8
One of the following cases is regarded as providing insurance labor services within the territory of the People’s Republic of China:
1.
Insurance labor services provided by insurance organizations within the territory of China, except the insurance coverage provided
by insurance organizations for export goods;
2.
Insurance organizations outside China provide insurance labor services for objects within the territory of China.
Article 9
The term “units” mentioned in Article 1 of the Regulations refers to State owned enterprises, collectively owned enterprises, private
enterprises, stockholding enterprises and other enterprises and administrative units, institutional units, military units, social
organizations and other units.
The term “individuals” mentioned in Article 1 of the Regulations refers to individual business people and other individual operators.
Article 10
If an enterprise is leased or contracted out for operation by others, the person or persons who lease it or the contractor or contractors
are the taxpayers.
Article 11
Except otherwise provided for in Article 12 of the Rules, units with obligations of business tax are units which have taxable acts
and collected money, goods or other economic interests from others, including both units practising independent accounting or not
practising independent accounting.
Article 12
For operation of central railways, the taxpayer shall be the Ministry of Railways. For operation of joint venture railways, the taxpayers
shall be joint railway ventures. For operation of local railways, the taxpayers shall be the local railway management organizations.
The taxpayers of feeder lines for capital construction are the organizations in charge of the feeder lines.
Units engaging in waterway shipping, air transport, pipeline transport or other land transportation operations and bearing the business
tax obligations are transport units with gains and losses computed.
Article 13
Fees collected by legislative organs, judicial organs and administrative organs are not subject to business taxes if the following
requirements are met:
1.
Fees collected under the permission and conforming to standards as set in official documents issued by State Council and provincial
people’s governments and the financial and pricing departments;
2.
Fees are directly collected by legislative organs, judicial organs and administrative organs.
Article 14
The term “additional expenses” mentioned in Article 5 of the Regulations refers to money collected as commissions, fund, fees for
raising funds, payment for others, advance payments and other extra- price collections.
All the expenses in addition to prices, irrespective of the methods of accounting, shall be included in the business turnover and
taxed accordingly.
Article 15
If a taxpayer is found to have provided taxable labor services, transferred intangible assets or sold immovable properties at prices
obviously on the low side without justifiable reasons, the tax authorities in charge shall determine the business turnover according
to the following sequence of order:
1.
It shall be determined according to the averaged prices of similar taxable labor services or similar immovable properties sold in
the same month by the taxpayer;
2.
It shall be determined according to the averaged prices of similar taxable labor services provided or similar immovable properties
sold in the latest period by the taxpayer;
3.
The formula for tax assessment price is:
Tax assessment price = Cost of business operations or cost of projects * (1 + profit rate on costs)/ (1 – business tax rate)
The profit rate on costs in the formula shall be determined by the tax authorities of the people’s governments of various provinces,
autonomous regions and municipalities directly under the Central Government.
Article 16
If a taxpayer settles its business turnover in foreign currencies according to the provisions of Article 4 of the Regulations, the
conversion of the amount into Renminbi shall be made according to the exchange rate (usually the medium rate) quoted by the State
in the day when the sales occur or on the first day of the month. But for conversions made for the business turnover of financial
and insurance enterprises, the exchange rate fixed in the final account statement of the preceding year shall be used.
The taxpayer should decide which conversion rate is to be adopted in advance and the corresponding rate decided upon shall remain
unchanged within a year.
Article 17
The business turnover of transport enterprises in carrying out through transport shall be the turnover actually obtained.
“Other cases” referred to in Subparagraph 6 of Article 5 of the Regulations include tourism enterprises organizing China tours. For
which the business turnover shall be the tourism fees collected minus the fees for hotel rooms, food, transport, tickets and other
expenses paid to other units concerned for the tourists.
Article 18
In building, repairing and decoration businesses, the business turnovers of taxpayers shall include, irrespective of its method of
settlement, the price value of the raw materials and other materials and power needed in the projects.
For installation operations, the business turnover of a taxpayer shall include the price value of equipment if the value of the equipment
installed includes the output value of the installed project.
Article 19
Business turnovers for projects built by one’s own effort as provided for in Article 4 of the Rules shall be fixed according to the
provisions of Article 15 of the Rules.
Article 20
The term “transference of credit” mentioned in Subparagraph 4 of Article 5 of the Regulations refers to the lending to others of
money borrowed from other sources. The lending of deposits by individuals or units or capital fund to others do not fall into the
kind.
Article 21
For re-insurance, the business turnover of the primary insurance is the total premium minus premium for re-insurers.
Article 22
In organizing art performances, the business turnover of a unit or an individual shall be the total box-office income or total contract
income minus the fees paid to units or producing companies who own the performing sites or brokers.
Article 23
The business turnover of recreational industry is all the charges collected from customers, including ticket fees, table fees, fees
for naming songs, fees for cigarettes, wines and soft drinks and other fees.
Article 24
The business turnover of a tourism unit shall be the total collection of fees minus the fees on food, lodging and transport paid to
other units concerned for the tourists.
If a tourism enterprise organizes a tour within the territory and hands it over to another tourism enterprise half way through, its
business turnover shall be determined in reference to the provisions of Subparagraph 2 of Article 5 of the Regulations.
Article 25
In donation of immovable properties gratis to others, the business turnover of the unit shall be fixed according to the provisions
of Article 15 of the Rules.
Article 26
The items of partly credit of taxes as provided for in Article 6 of the Regulations shall be limited to the following:
1.
The labor services provided by handicapped persons mentioned in Subparagraph 2 of Article 1 of the Regulations refer to the labor
services provided to the society by the handicapped persons themselves.
2.
The term “the medical services provided by hospital, clinics and other medical organization” mentioned in Subparagraph 3 of Article
1 of the Regulations refers to services provided to patients in diagnosis, treatment, prevention against diseases, birth delivery
and family planning and the medicines, medical instruments, wards and food provided in association with these services.
3.
The term “schools and other educational organizations” mentioned in Subparagraph 4 of Article 1 of the Regulations refers to regular
schools and schools set up with the approval of the people’s governments at and above the prefectural and country levels or of education
administrative departments at the same levels with the State recognizing the schooling of the students therein.
4.
The term “ploughing by machines in agriculture” mentioned in Subparagraph 5 of Article 1 of the Regulations refers to operations
(including ploughing, planting, harvesting, threshing and plant protection) done by machines in agriculture, forestry and livestock
breeding.
Drainage and irrigation refer to the operations of draining and irrigating the cropfields.
Pest prevention and control refer to the prediction, prevention and control of pests in agriculture, forestry, livestock breeding
and fisheries.
Agriculture insurance refers to providing insurance for plant culture, breeding and the culture and breeding of animals and plants.
Training in related technology refers to technical training in ploughing, draining and irrigation by machines, pest prevention and
control and plant protection as well as knowledge on insurance of agriculture and animal husbandry for peasants.
Tax credit for the mating and disease control of poultry, livestock and aquatic animals covers the provision of medicine and medical
instruments associated with the related labor service.
5.
“Cultural activities conducted by memorials, museums, cultural palaces, art galleries, exhibition centers, calligraphy and arts academies,
libraries and cultural relics protection units” mentioned in Subparagraph 6 of Article 1 refer to cultural and sports activities
subject to taxation held in their own sites. The box-office income refers to the income from the tickets sold at the first front
gates.
Box-office income from the cultural and religious activities held in religious sites refers to income from selling tickets for cultural
and religious activities held in temples, mosques and churches.
Article 27
Starting point for levying business tax as mentioned in Article 8 of the Regulations applies to individuals only.
The starting point for levying business tax is as follows:
Starting point for taxes levied in periods shall be for monthly turnover of RMB 200-800;
Starting point for taxes levied in installments shall be for daily turnover of RMB 50;
When the business turnover of a taxpayer has reached the starting point, the taxable amount shall be computed according to the full
business turnover.
The tax collecting bureaus under the people’s governments of various provinces, autonomous regions and municipalities directly under
the Central Government shall fix the starting points within the stipulated range for levying business tax for their own areas in
line with actual circumstances and submit them to the State Tax Administration for the record.
Article 28
The time for the tax obligations to occur in transferring and use rights or selling immovable properties under an advance payment
is the very day when the advance payment is received.
The times for tax obligations for whom who engages in building projects in own efforts as mentioned in Article 4 of the Rules is
the very day when the building structure is sold and business turnover is received or the document for collecting the business turnover
is received.
The time for tax obligations of a taxpayer who donates immovable properties to others is the day when the ownership of the immovable
properties is transferred.
Article 29
The other withholding agents mentioned in Article 11 of the Regulations are:
1.
For a unit or individual outside China that has committed taxable acts but has not operating organizations inside China, the entrusted
agent will be the withholding agent but when there is not an entrusted agent, the buyer or the consignee will be the withholding
agent.
2.
For units or individuals that organize art performances with the tickets being sold by others, the ticket sellers shall be the withholding
agents.
3.
If the broker for the performance is an individual, the ticket seller shall be the withholding agent.
4.
For re-insurance business, the primary insurer shall be withholding agent.
5.
For an individual who transfers other intangible assets mentioned in Subparagraph 2 of Article 12 of the Regulations, the consignee
shall be the withholding agent.
Article 30
When providing taxable labor services in other counties (cities), the taxpayers should file tax returns with the tax authorities of
the localities. If the taxpayers fail to file tax returns there, the tax authorities of the places where their organizations are
located or the place of their residence shall levy the tax in retrospect.
Article 31
When contracting for a project which concerns more than one province, autonomous region or municipality directly under the Central
Government, the taxpayer should file tax returns with the tax authorities in place where the organization of the taxpayer is located.
Article 32
If a taxpayer has committed taxable acts within its own province, autonomous region or municipality but wants to change the place
of tax payment, the case shall be determined by the tax authorities of the people’s government of its province, autonomous region
or municipality directly under the Central Government.
Article 33
The term of tax payment for enterprises of the financial industry (not including pawn shops) is three months.
The term of tax payment for insurance firms is one month.
Article 34
The terms “more than” or “less than” mentioned in the Rules all include the base figure.
Article 35
The power of interpreting the Rules rests with the Ministry of Finance or the State Tax Administration.
Article 36
The Rules shall enter into force as of the date of promulgation of the Regulations. At the same time, the Rules for the Implementation
of the Regulations (draft) of the People’s Republic of China on Business Taxissued by the Ministry of Finance on September 28, 1984
shall be nullified.
|
|
