Banquet Tax

Updated About encyclopedia.com content Print Article Share Article
views updated

28 Banquet Tax

BACKGROUND

TAX PROVISIONS WHILE IN FORCE

This tax is levied on activities related to the holding of banquets. The Provisional Regulations of the People's Republic of China on Banquet Tax were promulgated by the State Council on September 22, 1988.

Banquet Tax is administered and collected by the local tax bureaus. The revenue collected belongs to the local governments.

BACKGROUND

As part of tax reforms carried out in 1994, the State Council decentralized administration to the local governments.

At present, every region has stopped collecting the tax.

TAX PROVISIONS WHILE IN FORCE

Taxpayers

Any entities that hold banquets may be subject to tax.

Tax Base and Scope

The tax base shall be the total payment for each banquet.

The taxable value for each banquet shall not exceed 500 yuan or fall below 200 yuan.

Tax Rates

Tax is charged at a flat rate, ranging from 15% to 20%.

Computation Methods

Tax payable is calculated based on the taxable value and the applicable tax rate.

The applicable thresholds and tax rates, and effective dates, should be determined by the People's Government at the provincial level, after considering local conditions.

Exemptions

Whether or not to levy tax should be decided by the People's Government at the provincial level, after considering local conditions.

Payment Procedures and Policies

The specific tax collection methods should be formulated by the People's Government at the provincial level in accordance with the Provisional Regulations, and filed with the State Council.