Special Consumption Tax (“Special Consumption Tax”)

SCT is a tax that applies to the manufacture or import of certain goods or to provide certain services.

Imported goods (except gasoline of all kinds) are subject to special consumption tax at both the import and selling stages.

Download File: https://goo.gl/LgNdDK

Download Backup file:  http://bit.ly/2P6VHk4

SCT calculation price

The price for SCT calculation of goods sold by domestic enterprises or importing enterprises is the selling price excluding special consumption tax and environmental protection fee. Tax authorities can implement tax assignments if the selling price of the business does not match the normal transaction price in the market. The price for calculating excise tax on imported goods at the import stage is the price for calculating import tax plus import tax.

Where the manufacturer / importer sells the goods to a trading establishment that has the following relationship with the manufacturer / importer: i) parent company - subsidiary; ii) subsidiaries in the same parent company; or, iii) related, the excise tax base price must not be 93% lower than the average price of a dependent / affiliated trade establishment that sells to Independent / non-affiliated commercial businesses or customers. This rate applies to affiliated / affiliated businesses in single and multilevel distribution chains.

SCT deduction

Taxpayers producing goods subject to special consumption tax from raw materials subject to special consumption tax shall be deducted the SCT amount already paid on raw materials imported or purchased from domestic production establishments.

If taxpayers pay special consumption tax at both the import stage and the selling stage, the SCT amount already paid at the import stage shall be deducted from SCT payable at the selling stage.

SCT rate

The SCT Law classifies SCT-liable objects into two groups:

Commodities: cigarettes, cigars, alcohol, beer, cars under 24 seats, motorbikes, airplanes, yachts, gasoline, air conditioners with capacity from XNXX BTU or less, all leaves, gold code, code; and

Services: business of dance halls, massage, kaolin, casino, lottery business, prize-winning electronic games, betting business and golf business (golf).

The detailed SCT schedule of enterprises refers to SCT documents.