State Administration of Taxation, Questions Concerning Consumption Tax Policies on Liquor Products Circular
国家税务总局关於酒类产品消费税政策问题的通知
Assessment of the alcoholic beverage tax.
Date:
November 2002
CLP Reference: 3220/02.08.26
Promulgated: 26 August 2002
Keywords (click to search): [State Administration of Taxation] [SAT] [liquor consumption tax] [beer] [wine and spirits tax] [alcoholic beverage tax] [wine brand royalty]
Issued: August 26 2002
Main contents: The Circular stipulates that the tax authority may re-assess the taxable income for consumption tax of a liquor producer if the liquor producer is found to have transactions with its affiliates that were not conducted at arm's length in terms of price. The re-assessment may be based on the price of the same or a similar transaction conducted on an arm's length basis (Section One). The Circular also states that the tax rate applicable to cereal-based white spirits applies to white spirits for which the ingredients cannot be determined clearly (Section Two). "Brand royalty" received by liquor producers from purchasers shall be deemed part of the sales revenue and subject to consumption tax (Section Three).
To continue reading this article, you must be a subscriber.
The rest of this article is available to subscribers only. Subscribe now to continue reading this article and to have full access to all other articles and full-text translations.