Detailed Rules for the Implementation of the Provisional Regulations on Consumption Tax, and Detaile

Legal Analysis: The "Provisional Precedent of the People's Republic of China on Consumption Tax" has been revised and adopted at the 34th executive meeting on November 5, 2008, and the revised "Interim Regulations of the People's Republic of China on Consumption Tax" is hereby promulgated and will come into force on January 1, 2009.

Legal basis: Provisional Regulations of the People's Republic of China on Consumption Tax

Article 1 These Detailed Rules are formulated in accordance with the Provisional Regulations of the People's Republic of China on Consumption Tax (hereinafter referred to as the Regulations).

Article 2: "Units" as used in Article 1 of the Regulations refers to enterprises, administrative units, public institutions, military units, social organizations, and other units. The term "individual" as used in Article 1 of the Regulations refers to individuals, industrial and commercial households, and other individuals. The term "within the territory of the People's Republic of China" as used in Article 1 of the Regulations refers to the place of origin or location of the production, commissioned processing and import of consumer goods subject to consumption tax.

Legal analysis: Taxable consumer goods entrusted for processing refer to taxable consumer goods in which the entrusting party provides raw materials and main materials, and the entrusted party only collects processing fees and disbursements of part of the auxiliary materials. Taxable consumer goods produced by the consignee providing raw materials, or taxable consumer goods that the consignee sells the raw materials to the entrusting party before being processed, as well as taxable consumer goods produced by the consignee purchasing raw materials in the name of the entrusting party, shall not be regarded as commissioned processing of taxable consumer goods, regardless of whether they are financially treated as sales, but shall be subject to consumption tax on the sale of self-made taxable consumer goods.

Legal basis: Law of the People's Republic of China on the Administration of Tax Collection

Article 28 The taxation authorities shall levy taxes in accordance with the provisions of laws and administrative regulations, and shall not levy, suspend, overcollect, underleviate, collect in advance, postpone collection or apportionment of taxes in violation of the provisions of laws and administrative regulations. The amount of agricultural tax payable shall be determined in accordance with the provisions of laws and administrative regulations.

Article 29 Except for the tax authorities, tax personnel and units and personnel entrusted by the tax authorities in accordance with laws and administrative regulations, no unit or individual shall carry out tax collection activities.

Article 30 Withholding agents shall perform the obligation of withholding and collecting taxes in accordance with the provisions of laws and administrative regulations. The tax authorities shall not require entities and individuals that are not required by laws and administrative regulations to perform their obligations of withholding or collecting taxes. When the withholding agent fulfills the obligation of withholding or collecting tax in accordance with the law, the taxpayer shall not refuse.

If the taxpayer refuses, the withholding agent shall report to the tax authorities in a timely manner. The tax authorities shall pay the withholding and collection fees to the bearers of Yihuai in accordance with the regulations.

1. Release date of the implementation rules of the Provisional Regulations on Consumption Tax: 1987-07-17 Effective date: 1987-07-17 Issuing department: Ministry of Finance.

2. Consumption tax excise duty (special goods and services tax) is a general term for various taxes that are levied on the turnover of consumer goods. It is a tax levied on consumer goods that is not harvested in the spring, and can be levied from wholesalers or retailers. Consumption tax is a typical indirect tax for Hui Jujube.

Consumption tax is a new tax set up in the turnover tax before the tax reform in 1994.

Legal Analysis: The Provisional Regulations of the People's Republic of China on Consumption Tax have been revised and adopted at the 34th executive meeting on November 5, 2008, and the revised Interim Regulations on Consumption Tax of the People's Republic of China are hereby promulgated and will come into force on January 1, 2009.

Legal basis: Provisional Regulations of the People's Republic of China on Consumption Tax

Article 1 These detailed rules are formulated in accordance with the "Provisional Regulations of the People's Republic of China on Consumption Tax" (hereinafter referred to as the Regulations).

Article 2: The term "units" as used in Article 1 of the Regulations refers to enterprises, administrative units, public institutions, military units, social groups, and other units. The term "individual" as used in Article 1 of the Regulations refers to individual industrial and commercial households and other individuals. The term "within the territory of the People's Republic of China" as used in Article 1 of the Regulations refers to the place of origin or location of the Huaiye production, commissioned processing and import of consumer goods subject to consumption tax.