Detailed Rules for the Implementation of the Interim Regulations of the People's Republic of China on Consumption Tax(2008)

Detailed Rules for the Implementation of the Interim Regulations of the People's Republic of China on Consumption Tax(2008)

Order of the Ministry of Finance No. 51

December 18, 2008
　
Article 1 These Detailed Rules are formulated in accordance with the Interim 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 means enterprises, administrative agencies, public service institutions, military institutions, social organizations and other institutions.
The term "Individuals" as used in Article 1 of the Regulations means individual business operators and other individuals.
The term "within the territory of the People's Republic of China" as used in Article 1 of the Regulations means that the place of dispatch or location of the manufacture, subcontract or import of consumer goods subject to consumption tax is within the territory of the People's Republic of China.
　
Article 3 The specific scope of tax on the taxable consumer goods listed in the Taxable Item and Tax Rate Form for Consumption Tax attached to the Regulations will be determined by the Ministry of Finance and the State Administration of Taxation.
　
Article 4 The term "taxpayers dealing in taxable consumer goods with different tax rates" as used in Article 3 of the Regulations means taxpayers producing or selling taxable consumer goods with more than two applicable tax rates.
　
Article 5 The term "selling the goods" as used in Paragraph 1 of Article 4 of the Regulations means the transfer of the ownership of taxable consumer goods with compensation.
The term "with compensation" as used in the preceding paragraph means the receipt of cash, goods or other economic benefits from the buyer.
　
Article 6 The term "for their self-use in continuous production of taxable consumer goods" as used in Paragraph 1 of Article 4 of the Regulations means that taxpayers' self-produced and self-used taxable consumer goods are used as direct materials in producing ultimate taxable consumer goods and constitute a substance form of the final product.
The term "for other use" as used in Paragraph 1 of Article 4 of the Regulations means that taxpayers' self-produced and self-used taxable consumer goods are used for the production of non-taxable consumer goods; for construction in process, administrative departments and non-production institutions and provision of services; and taxable consumer goods used as donations, sponsor, fund-raising, advertising, samples, staff welfare,awards, etc.
　
Article 7 The term "taxable consumer goods sub-contracted for processing" as used in Paragraph 2 of Article 4 of the Regulations means processed taxable consumer goods for which the principal provides raw materials and major materials and the contractor only receives processing fees and supplies part of auxiliary materials for processing.
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