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

10-27-2007

(Promulgated on Order [1988] No. 16 of the State Council on Sept. 22, 1988)
(Article 1 These Regulations are formulated in order to provide guidance in rational consumption and encourage a fine social custom of diligence and frugality.
Article 2 Organizations and individuals spreading banquets in hotels, restaurants, guest houses and other catering establishments in China shall be payers of feast tax (hereinafter referred as the taxpayer) and pay feast tax in accordance with the provisions of these Regulations.
Article 3 Feast tax shall be levied ad valorem at a rate ranging from 15% to 20%.
The threshold of feast tax shall be a payment for a banquet ranging from 200 yuan to 500 yuan (covering food, beverage, dessert and cigarettes, same hereinafter) and tax shall be levied on the full payment that reaches or exceeds the tax threshold.
The people's governments of the provinces, autonomous regions and municipalities directly under the State Council shall determine the applicable tax rates and threshold within the range cited above in the light of the actual local conditions.
Article 4 The people's governments of the provinces, autonomous regions and municipalities directly under the State Council shall decide on specific cases that merit tax exemption.
Article 5 The hotels, restaurants, guest houses and other catering establishments that provide banquets for customers shall be withholding agents of feast tax (hereinafter referred to as the withholding agent) and withhold and hand over feast tax to the tax authorities.
Article 6 When a taxpayer's payment for a banquet reaches or exceeds the tax threshold, the withholding agent shall collect the feast tax while collecting the payment for the banquet.
The tax payments withheld shall be handed over to the local state treasury.
Article 7 The withholding agent in withholding feast tax shall fill a special feast tax voucher prepared by the tax authorities and give it to the taxpayer.
Article 8 The local tax authorities shall draw a certain portion from the tax payments handed over by the tax withholding agent as commission for the withholding agent within the range provided by the taxation departments of the provinces, autonomous regions and municipalities directly under the State Council.
Article 9 A taxpayer obstructing, making trouble with or opposing withholding agent from performing its obligation shall be dealt with in accordance with the law by the tax authorities.
Article 10 The collection of feast shall be administered in accordance with the provisions of the "Provisional regulations for the Administration of Tax Collection of the People's Republic of China".
Article 11 The Ministry of Finance shall be responsible for the interpretation of these Regulations and the people's governments of the provinces, autonomous regions and municipalities directly under the State Council shall formulate the rules for the implementation of the Regulations and report to the Ministry of Finance for the record.
Article 12 The people's governments of the provinces, autonomous regions and municipalities directly under the State Council shall decide the date for the implementation of these Regulations.