Updated: 2025-02-28 Source: STA General Office

Provisional Regulations of the People’s Republic of China on Excise Tax

Promulgated by Order No. 135 of the State Council of the People’s Republic of China on December 13, 1993; amended and adopted at the 34th standing meeting of the State Council on November 5, 2008; promulgated by Order No. 539 of the State Council of the People’s Republic of China on November 10, 2008 and entered into force from January 1, 2009.

Article 1   Entities and individuals that produce, process under commission and import the consumer goods prescribed in the Regulations within the territory of the People’s Republic of China, and other entities and individuals determined by the State Council to sell the consumer goods prescribed in the Regulations, shall be the taxpayers of excise tax and shall pay excise tax in accordance with the Regulations.

Article 2   The taxable items and tax rates of excise tax shall be applied in accordance with the Table of Taxable Items and Tax Rates of Excise Tax attached to the Regulations.

Any adjustment of the taxable items and tax rates of excise tax shall be determined by the State Council.

Article 3   Taxpayers engaged in producing, processing or importing consumer goods subject to excise tax (hereinafter referred to as “taxable consumer goods”) with different tax rates, shall separately calculate the sales amounts and sales quantities. Where the sales amounts and sales quantities are not separately calculated, or where taxable consumer goods with different tax rates are sold as a set of consumer goods, the higher tax rate shall be applied.

Article 4   Taxable consumer goods produced by taxpayers shall be taxed upon sales. Self-produced taxable consumer goods for self use shall not be taxed if they are used for continuous production of taxable consumer goods; but self-produced taxable consumer goods for other uses shall be taxed at the time when the goods are transferred.

For commissioned processing of taxable consumer goods, the entrusted party shall collect and withhold the tax when delivering the goods to the entrusting party, unless the entrusted party is an individual. If the taxable consumer goods under commissioned processing are used by the entrusting party for continuous production of taxable consumer goods, the tax paid shall be allowed to be deducted in accordance with the regulations.

Imported taxable consumer goods shall be subject to tax upon customs declaration for imports.

Article 5   When calculating the amount of tax payable of excise tax, the ad valorem tax method, the specific tax method, or the composite tax method combining the ad valorem tax method and the specific tax method (hereinafter referred to as the “composite tax method”) shall be applied. The formulas for calculating the amount of tax payable shall be:

the amount of tax payable calculated by the ad valorem tax method = sales amount×proportional tax rate

the amount of tax payable calculated by the specific tax method = sales quantity×specific tax rate

the amount of tax payable calculated by the composite tax method = sales amount×proportional tax rate + sales quantity×specific tax rate

The sales amount of taxable consumer goods sold by taxpayers shall be calculated in Chinese yuan. Where the sales amount settled by the taxpayer is in a foreign currency other than Chinese yuan, it shall be converted to Chinese yuan.

Article 6   The sales amount shall be the full price and extra fees the taxpayer charge for the sale of taxable consumer goods.

Article 7   For self-produced taxable consumer goods for self use, the tax shall be calculated and paid according to the sales price of similar consumer goods produced by the taxpayer. Where the sales price of similar consumer goods is not available, the tax shall be calculated and paid according to the composite assessable price.

Where the tax is calculated by the ad valorem tax method, the formula for calculating the composite assessable price shall be:

composite assessable price = (cost + profit) / (1 – proportional tax rate)

Where the tax is calculated and paid by the composite tax method, the formula for calculating the composite assessable price shall be:

composite assessable price = (cost + profit + quantity of the self-produced goods for self use×specific tax rate) / (1 - proportional tax rate)

Article 8   For taxable consumer goods under commissioned processing, the tax shall be calculated and paid according to the sales price of similar consumer goods of the entrusted party. Where the sales price of similar consumer goods is not available, the tax shall be calculated and paid according to the composite assessable price.

Where the tax is calculated and paid by the ad valorem tax method, the formula for calculating the composite assessable price shall be:

composite assessable price = (cost of materials + processing charges) / (1 - proportional tax rate)

Where the tax is calculated by the composite tax method, the formula for calculating the composite assessable price shall be:

composite assessable price = (cost of materials + processing charges + quantity of goods under commissioned processing×specific tax rate) / (1 - proportional tax rate)

Article 9   For imported taxable consumer goods, the tax shall be calculated and paid according to the composite assessable price.

Where the tax is calculated and paid by the ad valorem tax method, the formula for calculating the composite assessable price shall be:

composite assessable price = (customs value + customs duty) / (1 - proportional excise tax rate)

Where the tax is calculated and paid by the composite tax method, the formula for calculating the composite assessable price shall be:

composite assessable price = (customs value + customs duty + quantity of goods imported × specific excise tax rate) / (1 - proportional excise tax rate)

Article 10   Where the taxable price of taxable consumer goods of the taxpayer is obviously low without justifiable grounds, the tax authority in charge shall assess and determine the taxable price.

Article 11   Taxpayers exporting taxable consumer goods shall be exempted from excise tax, unless otherwise prescribed by the State Council. The tax exemption measures for the export of taxable consumer goods shall be formulated by the finance and taxation departments of the State Council.

Article 12    Excise tax shall be collected by tax authorities. Excise tax on imported taxable consumer goods shall be collected by customs on behalf of tax authorities.

The excise tax on taxable consumer goods carried or mailed into the territory of China by individuals shall be calculated and collected together with the customs duty. Specific measures shall be formulated by the State Council Tariff Commission in conjunction with relevant departments.

Article 13   Taxpayers selling taxable consumer goods and self-produced taxable consumer goods for self use, unless otherwise prescribed by the finance and taxation departments of the State Council, shall file taxes with the tax authorities in charge where the taxpayers’ establishments are located or where they reside, and pay the taxes.

For taxable consumer goods under commissioned processing, the entrusted parties shall remit the excise tax to the tax authorities where the taxpayers’ establishments are located or where they reside, unless the entrusted parties are individuals.

For imported taxable consumer goods, taxes shall be filed with the customs where the customs declaration is made and shall be paid.

Article 14   The tax period for excise tax payment shall be one day, three days, five days, 10 days, 15 days, one month or one quarter. The specific period for tax payment of a taxpayer shall be assessed and determined by the tax authorities in charge according to the taxpayer’s amount of tax payable. Where tax cannot be paid based on a fixed period, tax can be paid on a transaction-by-transaction basis.

Taxpayers adopting one month or one quarter as a tax period shall file and pay taxes within 15 days after the end of the tax period. Taxpayers that take one day, three days, 10 days or 15 days as a tax period shall, prepay taxes within five days after the end of the tax period, and file and pay the taxes for the previous month within 15 days after the first day of the following month.

Article 15   Taxpayers importing taxable consumer goods shall pay taxes within 15 days after the customs issues the tax payment notification specifically for excise tax on importing taxable consumer goods.

Article 16   Excise tax shall be administered in accordance with Tax Collection and Administration Law of the People’s Republic of China and the provisions of the Regulations.

Article 17   The Regulations shall enter into force from January 1, 2009.

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.

Annex: Table of Taxable Items and Tax Rates of Excise Tax

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.