Tentative Regulations of the People's Republic of China on Banquet Tax

Tentative Regulations of the People's Republic of China on Banquet Tax

Order of the State Council [1998] No. 16

September 22, 1998

Article 1 These Regulations are formulated to provide guidance on reasonable consumption and to promote the practice of thrift and economy within society.

Article 2 All units or individuals (hereinafter referred to as "taxpayers") that hold banquets in China at restaurants, cafes, hotels, guest houses and other places engaged in catering shall be subject to Banquet Tax, and shall pay Banquet Tax in accordance with the provisions of these Regulations.

Article 3 Banquet Tax shall be calculated and imposed on each occasion at a tax rate of 15 to 20% of the cost of the banquet.
The threshold with respect to the liability to Banquet Tax shall be based on the one-off cost of the banquet (including the amount paid for main-course dishes, wine, rice, wheaten dishes, light refreshments, beverages, fruits, cigarettes and other such items) and shall be between RMB 200 and 500.
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