The enterprises who purchase tobacco leaves within the territory of China shall be the taxpayers of tobacco tax.
2. Taxation Scope
Dried tobacco leaves, roasted tobacco leaves.
3. Tax Rate
Tobacco tax adopt uniform tax rate of 20%.
4. Calculation for tax payable
Tax payable= Actual payment for tobacco leaf procurement*20%
* The actual payment includes the price of tobacco leaf and additional subsidies, which shall be calculated at 10% of the purchase price.
Disclaimer
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There are 11 kinds of taxes currently applicable to the enterprises with foreign investment, foreign enterprises and/or foreigners, namely: Value Added Tax, Consumption Tax, Income Tax on Enterprises with Foreign Investment and Foreign Enterprises, Individual Income Tax, Resource Tax, Land Appreciation Tax, Urban Real Estate Tax, Vehicle and Vessel Usage License Plate Tax, Stamp Tax, Deed Tax, and Customs Duties.
Enterprises and individuals who manufacture, entrust other companies to process and import taxable consumer goods are taxpayers of consumption tax. Qualified pure biodiesel is exempted from consumption tax;Mercury-free galvanic cell, nickel-metal hydride battery, lithium primary cell, lithium ion battery, solar cell, fuel cell, all-vanadium flow battery is exempted from consumption tax;
The taxpayers of Enterprise Income Tax include any enterprise and other organizations (not applicable to sole proprietorships and partnerships) which have income derived from China. Including resident enterprises and non-resident enterprises.Resident enterprises: enterprises which are established in China according to Chinese law or established in accordance with laws of foreign countries (regions) but have actual management institutions in China.
Foreign enterprises include foreign companies, enterprises and other economic organizations which have establishments or places in China engaged in production or business operations or which, though without establishments or places in China, have income from sources within the territory of China.
