The new consumption tax policy for the coatings industry in 2015

Announcement No. 2 of 2015 of the General Administration of Customs - Announcement on Further Adjusting the Consumption Tax at the Import Stage of Refined Oil Products (Announcement No. 2 of 2015 of the General Administration of Customs

Key points: As of January 13, 2015, the unit tax rate of consumption tax on gasoline, naphtha, solvent oil and lubricating oil at the import stage has been raised from 1.4 yuan per liter to 1.52 yuan per liter. The unit tax rate for consumption tax on diesel, aviation kerosene and fuel oil at the import stage has been raised from 1.1 yuan per liter to 1.2 yuan per liter, while the collection of aviation kerosene remains suspended.

Notice of the Ministry of Finance and the State Administration of Taxation on Continuing to Raise the Consumption Tax on Refined Oil Products (CAI Shui [2015] No. 11)

Key points: As of January 13, 2015, the unit tax rate for consumption tax on gasoline, naphtha, solvent oil and lubricating oil has been raised from 1.4 yuan per liter to 1.52 yuan per liter. The unit tax rate for consumption tax on diesel, aviation kerosene and fuel oil has been raised from 1.1 yuan per liter to 1.2 yuan per liter, while the collection of aviation kerosene remains suspended.

Announcement of the Ministry of Finance on Implementing the Tax Refund Policy for Overseas Passengers' Shopping at Departure (Announcement No. 3 of 2015 of the Ministry of Finance)

Key points: Starting from January 6, 2015, in regions across the country that meet the conditions, foreign passengers (foreigners and compatriots from Hong Kong, Macao and Taiwan who have continuously resided in China for no more than 183 days) will be allowed to leave the country at departure ports (ports that have been officially opened to the public and have tax refund agencies in regions implementing the departure tax refund policy, including air ports, water ports and land ports). The policy of refunding value-added tax for items purchased at tax refund stores.

Notice of the Ministry of Finance and the State Administration of Taxation on Adjusting the Export Rebate Rates for Some Products (CAI Shui [2014] No. 150)

Key points: Starting from January 1, 2015: The export rebate rates for some high value-added products, corn processed products, and textile and garment products will be raised. Cancel the export rebate for boron-containing steel. Starting from April 1, 2015: The export rebate rate for export will be reduced.

Notice of the Ministry of Finance and the State Administration of Taxation on Export Rebate Policies for Goods Mainly Made of Precious Metals and Gemstones (CAI Shui [2014] No. 98)

Key points to note: For goods exported by export enterprises and other units, if more than 80% of the raw material costs are listed in the annex of this notice, the value-added tax and consumption tax policies for the raw materials with the highest cost proportion shall be implemented. The value-added tax and consumption tax policies for raw materials refer to the value-added tax and consumption tax policies applicable to the commodity codes corresponding to the raw materials listed in the annex of this notice in the export rebate rate library.

Article 9, Paragraph (2), Item 6 and Annex 9 of the "Notice of the Ministry of Finance and the State Administration of Taxation on Policies for Value-Added Tax and Consumption Tax on Exported Goods and Services" (CAI Shui [2012] No. 39) are simultaneously abolished.

Supplementary Notice of the Ministry of Finance, General Administration of Customs and State Administration of Taxation on Canceling the Bonded Policy for Imported Steel under Processing Trade (CAI Guan Shui [2014] No. 54)

Key points: Tariffs and import-link taxes will be levied on 78 types of steel products under the processing trade import regulations. For contracts signed before December 31, 2014 and actually imported before June 30, 2015, it is allowed to continue to conduct processing trade in a bonded manner during the validity period of the contract.

Notice of the Ministry of Finance and the State Administration of Taxation on the Application of Value-Added Tax Refund (Exemption) Policies for Goods Entering the China-Kazakhstan Horgos International Border Cooperation Center (CAI Shui [2015] No. 17)

Key points: After the China-Kazakhstan Horgos International Border Cooperation Center is sealed and inspected, construction materials for infrastructure (excluding public infrastructure) and self-used equipment for facilities within the center that enter from within the Chinese territory will be treated as export goods and subject to value-added tax refund (exemption) policies.

The tax policy that came into effect on February 1, 2015

Notice of the Ministry of Finance and the State Administration of Taxation on Levying Consumption Tax on Batteries and Coatings (CAI Shui [2015] No. 16

Key points: Batteries and coatings are included in the scope of consumption tax collection (for specific tax item annotations, please refer to the attachment), and are levied at the production, consignment processing and import stages, with an applicable tax rate of 4% for all. Consumption tax is exempted for mercury-free primary batteries, nickel-metal hydride storage batteries (also known as "nickel-metal hydride storage batteries" or "nickel-metal hydride storage batteries"), lithium primary batteries, lithium-ion storage batteries, solar cells, fuel cells and all-vanadium REDOX flow batteries.

The tax on lead-acid batteries will be deferred until December 31, 2015. Since January 1, 2016, a consumption tax of 4% has been levied on lead-acid batteries.

Announcement of the State Administration of Taxation on the Applicable VAT Rate for Peony Seed Oil (Announcement No. 75 of 2014 of the State Administration of Taxation)

Peony seed oil is an edible vegetable oil and is subject to a 13% value-added tax rate.

Peony seed oil is a product made from the seed kernels of the Danfeng peony and the purple-spotted peony through processes such as pressing, decolorization, and deodorization.

Measures for the Collection and Administration of Vehicle Purchase Tax (Order No. 33 of the State Taxation Administration)

Key points: The minimum taxable price refers to the vehicle purchase tax taxable price determined by the State Taxation Administration based on the vehicle price information provided by motor vehicle manufacturers or dealers, with reference to the average market transaction price. (Editor's Note: Compared with the original regulations, "Vehicle price information provided by dealers" has been added.

Measures for the Trial of Major Tax Cases (Order No. 34 of the State Taxation Administration)

Key points: The trial of major tax cases is conducted through a combination of written review and meeting review.

The inspection Bureau shall prepare relevant documents such as tax handling and penalty decisions in accordance with the opinions on the trial of major tax cases, affix the seal of the Inspection Bureau and then deliver them for execution.

General Anti-Tax Avoidance Management Measures (Trial) (Order No. 32 of the State Taxation Administration)

Abstract: This measure applies to the special tax adjustments implemented by the tax authorities in accordance with the law against tax avoidance arrangements made by enterprises that do not have reasonable commercial purposes but are intended to obtain tax benefits.

Tax benefits refer to the reduction, exemption or deferral of the amount of enterprise income tax payable.

Tax avoidance arrangements have two characteristics: the sole or primary purpose is to obtain tax benefits; Obtaining tax benefits in a way that formally complies with tax laws but is inconsistent with its economic substance.