(Ministry of Finance: 17 February 1993 [93] Coded Finance andTaxation No. 006)
(Ministry of Finance: 17 February 1993 [93] Coded Finance andTaxation No. 006)
Whole Doc.
To the tax bureaus of various provinces, autonomous regions and
municipalities (not issuing to Tibet), and to the tax bureaus of various
cities with separate planning:
In recent years, reports from various localities have indicated that
the mechanical watches and stopwatches industries have difficulties in
production and management and suffer serious losses and defaults of taxes,
demanding that they be given due consideration in taxation. After study, a
decision is hereby taken to reduce the VAT rate for mechanical watches and
stopwatches. A notice on related problems is given as follows:
1. VAT rate for mechanical watches and stopwatches (hereinafter
referred to as wristwatches) shall be reduced from 43 percent to 30
percent as of January 1, 1993. After tax rate for wristwatches is
reduced, the various local authorities shall levy taxes strictly in
accordance with the stipulations, and all wristwatches, without exception,
shall no longer be given consideration of tax reduction and exemption, and
no more new default of taxes shall occur.
2. With regard to the tax payment for the sales of wristwatches
before the end of 1992 owed by the enterprise, a conscientious check and
examination shall be conducted by the tax departments in various
localities, the money shall be dunned and put in storage. If the
enterprise does have difficulties in paying VAT, it may, on the basis of
the sales incomes from wristwatches all sold domestically in the year when
the tax is owed, which are taxed at a 30 percent rate and put in storage,
report to the State Administration of Taxation for examination and
approval of that part of tax owed that is above 30 percent in accordance
with the stipulations of the taxation management system, and shall be
given the consideration of a lump sum tax reduction and exemption.
3. With regard to wristwatch enterprise on which VAT is levied at a
"fixed term and fixed rate", the rate of tax levied on wristwatches is
reduced to 19.8 percent.
These stipulations go into effect on January 1, 1993. If past
documents contradict these stipulations, the notice shall be taken as the
criterion.
|