(State Council: 22 September 1988)

(State Council: 22 September 1988) Whole Doc.

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 200 and 500 yuan (Renminbi). Where the cost equals or exceeds the threshold amount, banquet tax shall be calculated and imposed on the total amount paid.

The people's governments of the respective provinces, autonomous regions and municipalities directly under the Central Government may, taking into account the local conditions, determine the applicable tax rate and tax threshold within the ranges mentioned in the preceding paragraph.

Article 4 The specific circumstances in which exemption from banquet tax is necessary shall be determined by the people's governments of the respective provinces, autonomous regions and municipalities directly under the Central Government.

Article 5 Restaurants, cafes, hotels, guest houses and other units and individuals engaged in the catering business (hereinafter referred to as "tax collecting agents") shall be responsible for the collection and remittance of banquet tax and shall be responsible for the collection and turning over of banquet tax.

Article 6 If the one-off cost paid by a taxpayer for a banquet equals or exceeds the threshold amount for the banquet tax, the tax collecting agent shall, when collecting payment for the banquet, collect the banquet tax.

The amount of tax collected shall be remitted to the local treasury.

Article 7 When collecting tax payment, the tax collecting agent shall complete a special banquet tax payment certificate, printed by the tax authorities, which shall be given to the taxpayer.

Article 8 For tax collecting agents who have performed their obligations to collect and remit banquet tax, in accordance with the relevant provisions, the tax authorities may set aside and pay a handing fee, based on the amount of tax remitted, within a range determined by the tax bureaus of the respective provinces, autonomous regions and municipalities directly under the Central Government.

Article 9 Taxpayers who are obstructive or create difficulties in respect of the collection of tax by tax collecting agents or who refuse to pay the tax shall be dealt with by the tax authorities in accordance with the law.

Article 10 The administration of the collection of banquet tax shall be governed by the Provisional Regulations of the People's Republic of China Concerning Tax Administration and the relevant provisions.

Article 11 The Ministry of Finance shall be responsible for the interpretation of these Regulations; rules for implementation shall be formulated by the people's governments of the respective provinces, autonomous regions and municipalities directly under the Central Government and shall be submitted to the Ministry of Finance for the record.

Article 12 The effective date of these Regulations shall be determined respectively by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.

x payment certificate, printed by the tax authorities, which shall be given to the taxpayer.

Article 8 For tax collecting agents who have performed their obligations to collect and remit banquet tax, in accordance with the relevant provisions, the tax authorities may set aside and pay a handing fee, based on the amount of tax remitted, within a range determined by the tax bureaus of the respective provinces, autonomous regions and municipalities directly under the Central Government.

Article 9 Taxpayers who are obstructive or create difficulties in respect of the collection of tax by tax collecting agents or who refuse to pay the tax shall be dealt with by the tax authorities in accordance with the law.

Article 10 The administration of the collection of banquet tax shall be governed by the Provisional Regulations of the People's Republic of China Concerning Tax Administration and the relevant provisions.

Article 11 The Ministry of Finance shall be responsible for the interpretation of these Regulations; rules for implementation shall be formulated by the people's governments of the respective provinces, autonomous regions and municipalities directly under the Central Government and shall be submitted to the Ministry of Finance for the record.

Article 12 The effective date of these Regulations shall be determined respectively by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.