Circular on Some Concrete Questions concerning Refunding the Extra Tax Payments Resulting from the Switch-over to the Levy of Value-Added Tax and Consumption Tax on Enterprise with Foreign Investment
Circular on Some Concrete Questions concerning Refunding the Extra Tax Payments Resulting from the Switch-over to the Levy of Value-Added Tax and Consumption Tax on Enterprise with Foreign Investment
Circular on Some Concrete Questions concerning Refunding the Extra Tax Payments Resulting From the Switch-over to the Levy of Value-Added Tax and Consumption Tax on Enterprise with Foreign Investment
Guo Shui Fa [1994] No.115
April 21,1994
In the spirit of the State Council Circular on Questions Related to the Provisional Regulations concerning the Levy of Applicable Value-Added Tax, Consumption Tax and Business Tax on Foreign-Funded Enterprises and Foreign Enterprises, questions concerning refunding the extra tax paid by foreign-funded enterprises after the change-over to the levy of value-added tax and consumption tax are hereby clarified in detail as follows;
I. The extra tax paid by foreign-funded enterprises due to cage-over to the levy of value-added tax and consumption tax refers to the actual tax payment calculated in accordance with the Interim Regulations of the People's Republic of China on Value-added Tax, the Interim Regulations of the People's Republic of China on Consumption Tax and related stipulations for the goods sold, product processing and labor services provided such as repair, production, and processing taxable consumer goods on a commission basis by foreign-funded enterprises, that surpasses the part of payable tax calculated in accordance with the original Regulations of the People's Republic of China On Consolidated Industrial and Commercial Tax (Draft), Regulations On Questions Concerning the Levy of Special Consumption Tax on Sedan Cars issued by the State Administration of Taxation as well as related stipulations, The calculation formula is given as follows:
Current extra tax payment= current actual payment of value - added tax current actual payment of consumption tax -consolidated industrial and commercial tax payment -special consumer tax payment.
The consolidated industrial and commercial tax payment refers to the tax payment (including local surcharge) worked out in accordance with the table of tax items and tax rates of consolidated industrial and commercial tax attached to the Circular On Questions Concerning Implementing the Document Coded Guo Shui Han Fa [1993] No. 152, a document of the Foreign Tax Management Department of the State Administration of Taxation coded Coded Guo Shui Wai Han [1994] No. 009, which is calculated on the basis of the combined total of the sales volume of the current year and tax on the sale item. For foreign-funded enterprises engaged in wholesale and retail sale business, consolidated industrial and commercial tax payment on their business income is all calculated at a 3 percent rate.
The special consumption tax payment refers to the tax payment worked out in accordance with the quantity of current taxable products and the tax items, tax value and calculation methods as listed in the Regulations on Questions Concerning the Levy of Special Consumption Tax on Sedan Cars, a document of the State Administration of Taxation, coded (89) Guo Shui Liu Zi No. 112.
II. For the overly paid tax by the foreign-funded enterprise which pays both value-added tax and consumption tax, the tax reimbursement for the value-added tax and consumption tax shall be calculated in accordance with the proportion of the current value- added tax and consumption tax actually paid in the total value of the current value-added tax and
consumption actually paid.
......
Guo Shui Fa [1994] No.115
April 21,1994
In the spirit of the State Council Circular on Questions Related to the Provisional Regulations concerning the Levy of Applicable Value-Added Tax, Consumption Tax and Business Tax on Foreign-Funded Enterprises and Foreign Enterprises, questions concerning refunding the extra tax paid by foreign-funded enterprises after the change-over to the levy of value-added tax and consumption tax are hereby clarified in detail as follows;
I. The extra tax paid by foreign-funded enterprises due to cage-over to the levy of value-added tax and consumption tax refers to the actual tax payment calculated in accordance with the Interim Regulations of the People's Republic of China on Value-added Tax, the Interim Regulations of the People's Republic of China on Consumption Tax and related stipulations for the goods sold, product processing and labor services provided such as repair, production, and processing taxable consumer goods on a commission basis by foreign-funded enterprises, that surpasses the part of payable tax calculated in accordance with the original Regulations of the People's Republic of China On Consolidated Industrial and Commercial Tax (Draft), Regulations On Questions Concerning the Levy of Special Consumption Tax on Sedan Cars issued by the State Administration of Taxation as well as related stipulations, The calculation formula is given as follows:
Current extra tax payment= current actual payment of value - added tax current actual payment of consumption tax -consolidated industrial and commercial tax payment -special consumer tax payment.
The consolidated industrial and commercial tax payment refers to the tax payment (including local surcharge) worked out in accordance with the table of tax items and tax rates of consolidated industrial and commercial tax attached to the Circular On Questions Concerning Implementing the Document Coded Guo Shui Han Fa [1993] No. 152, a document of the Foreign Tax Management Department of the State Administration of Taxation coded Coded Guo Shui Wai Han [1994] No. 009, which is calculated on the basis of the combined total of the sales volume of the current year and tax on the sale item. For foreign-funded enterprises engaged in wholesale and retail sale business, consolidated industrial and commercial tax payment on their business income is all calculated at a 3 percent rate.
The special consumption tax payment refers to the tax payment worked out in accordance with the quantity of current taxable products and the tax items, tax value and calculation methods as listed in the Regulations on Questions Concerning the Levy of Special Consumption Tax on Sedan Cars, a document of the State Administration of Taxation, coded (89) Guo Shui Liu Zi No. 112.
II. For the overly paid tax by the foreign-funded enterprise which pays both value-added tax and consumption tax, the tax reimbursement for the value-added tax and consumption tax shall be calculated in accordance with the proportion of the current value- added tax and consumption tax actually paid in the total value of the current value-added tax and
consumption actually paid.
......