- Contemporary China Series Editorial Board, Contemporary China's Industrial and Commercial Tax (Contemporary China Publisher, 1994) 27–31.
- Enforcement Guidelines of National Taxation (Government Administration Council, 30 January 1950, effective 30 January 1950), Art 4.
- Provisional Regulations on Product Tax (Government Administration Council, 31 January 1950, effective 31 January 1950) (hereinafter PRPT). Provisional Regulations on Industrial and Commercial Tax (Government Administration Council, 31 January 1950, effective 31 January 1950) (hereinafter PRICT). The two regulations were amended on 19 December 1950 by the GAC. The Ministry of Finance (MOF) then issued two respective implementation rules on the two regulations on 21 December 1950. The amended regulations on product tax reduced taxable types of goods to 8 from 10, and the amended regulations on industrial and commercial taxes added one more calculation and collection method on business tax.
- PRPT, Art 5.
- PRICT, Art 3.
- PRICT, Art 9.
- PRICT, Art 5. This does not mean that state-owned enterprises paid no income tax. The burden on them did not come in the form of income tax as such but in the form of profits remittance.
- PRICT, Art 8.
- Provisional Organization Rules for National Tax Authorities at All Levels (Government Administration Council, 1 January 1950, effective 30 January 1950).
- Wu Zhaoxin, History of the Tax System of China (Taiwan Shangwu Press, 1965) 283–7.
- Notice on Tax System Amendments and Implementation Period (Government Administrative Council, 31 December 1952, effective 1 January 1953). This was perhaps because the number of intermediate transactions of goods declined as a result of direct transactions between producers and sellers. This adversely affected business tax revenue from the point of wholesale.
- Liu Zuo, Sixty Years of Taxation in New China (China Finance and Economics Publishing House, 2009) 12.
- Implementation Rules on the Trial Measures for Commodity Circulation Tax (MOF, 31 December 1952, effective 1 January 1953), Art 4.
- Trial Measures for Commodity Circulation Tax (Government Administration Council, 26 December 1952, effective 1 January 1953), Art 2.
- Liu (n 12) 14–18.
- ibid.
- PRICT, Art 8.
- ‘Tax Statistics 1950–1957' in China Tax Yearbook (China Taxation Publisher, 2000). The tax revenue data from 1950 to 1957 are also derived from research carried out on the internal records database in the Guangdong Province SAT Bureau. The data are on file with the author.
- MOF CPC Organisation, Report on Structuring the Industrial and Commercial Tax System and Implementing the Turnover Tax on State-Owned Enterprises, 30 December 1955.
- Regulations on the Consolidated Industrial and Commercial Tax (Draft) (passed by the NPCSC, issued by the State Council, 13 September 1958, effective 13 September 1958) (hereinafter RCICT); Implementation Rules of the Regulations on the Consolidated Industrial and Commercial Tax (Draft) (MOF, 13 September 1958, effective 13 September 1958).
- RCICT, Arts 2 and 10.
- RCICT, Schedule of Taxable Items and Tax Rates.
- RCICT, Arts 4–8.
- CPC Central Committee, Approval of the MOF CPC Organisation Report on Improving the Fiscal System and Strengthening Fiscal Administration, 15 January 1961; CPC Central Committee, Provisional Regulations on Adjustment of the Administration System, 20 January 1961.
- Liu (n 12) 56–64.
- ibid.
- On 30 March 1972, the State Council approved the MOF Report on Expanding the Trial Reform on Industrial and Commercial Tax, together with the Regulations on Industrial and Commercial Tax (Draft), which were to be implemented nationwide from 1973. On 25 December 1973, the MOF issued a revised Interpretation on Implementing the Industrial and Commercial Tax and the Rules on Several Issues about the Industrial and Commercial Tax.
- Liu (n 12) 64.
- Eleventh CPC Central Committee Third Congress Meeting Notice (XinHua News Department, 22 December 1978).
- Chinese-Foreign Equity Joint Venture Income Tax Law (National People's Congress (NPC), 10 September 1980, effective 10 September 1980). Law on Individual Income Tax (NPC, 10 September 1980, effective 10 September 1980). Foreign Enterprise Income Tax Law (NPC, 13 December 1981, effective 1 January 1982). The two laws on foreign-related enterprise income taxes were merged into a single law in 1991, ie Income Tax Law on Enterprise with Foreign Investment and Foreign Enterprises, which was replaced by the Enterprise Income Tax Law in 2008. The Law on individual income tax has been amended six times since it came into effect in 1980.
- Provisional Regulations on Enterprise Income Tax (State Council, 13 April 1983).
- Provisional Measures on VAT for Machinery, Agriculture and Other Mechanical Equipment (MOF, 31 May 1982, effective 1 July 1982).
- Decision on Delegating to the State Council the Power to Reform the Industrial and Commercial Tax and Issue Relevant Tax Regulations (NPCSC, 18 September 1984).
- SOE Tax Reform Second Stage Implementation Measures (State Council, 18 September 1984, effective 1 October 1984).
- Regulations on BT (Draft), Art 1.
- ibid, Schedule of Taxable Items and Tax Rates.
- ibid, Art 3.
- ibid, Art 6.
- ibid, Arts 5 and 9.
- Regulations on VAT (Draft), Arts 6 and 7, Schedule of Taxable Items and Tax Rates.
- ibid, Schedule of Taxable Items and Tax Rates; Regulations on Product Tax (Draft), Schedule of Taxable Items and Tax Rates.
- Regulations on Product Tax (Draft), Arts 3–5.
- ibid, Schedule of Taxable Items and Tax Rates.
- ibid, Art 4. This difference was a salient feature of the product tax and led to a much higher tax rate than the normal tax on goods. For example, assuming the tax rate on mechanical watch parts was 55%, for a purchase worth 100 yuan, 55 yuan were taken as tax and 45 yuan were left for the producer. The tax paid was about 122% of the producer price. The 55% rate of product tax was in effect 122%.
- For a detailed discussion of the cascading effect see World Bank, China: Revenue Mobilization and Tax Policy (World Bank, 1990) 38.
- Roy Bahl, Fiscal Policy in China: Taxation and Intergovernmental Fiscal Relations (The 1990 Institute, 1999) 30.
- World Bank (n 45) xvi.
- ibid, ix–x.
- ibid, xvii.
- Provisional Regulations on Value Added Tax (State Council, 13 December 1993, effective 1 January 1994); Provisional Regulations on Business Tax (State Council, 13 December 1993, effective 1 January 1994).
- State Council Resolution on the Application of a Tax-Sharing Fiscal Administrative System in China (State Council, 15 December 1993, effective 1 January 1994).
World Journal of VAT/GST Law
Volume 1, 2012 - Issue 2