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	ANNOUNCEMENT OF THE STATE ADMINISTRATION OF TAXATION ON IMPLEMENTING THE "OPINIONS OF CCCPC AND THE STATE COUNCIL CONCERNING SOME POLICIES ON PROMOTING THE INCREASE OF PEASANTS' INCOME" AND THE RELEVANT PREFERENTIAL TAXATION POLICIES

	(January 20, 2004)


SUBJECT : FARMERS
ISSUING DEPARTMENT : THE STATE ADMINISTRATION OF TAXATION
ISSUE DATE : 01/20/2004
IMPLEMENT DATE : 01/20/2004
LENGTH : 645 words
TEXT :

In order to earnestly implement the demand of the Central Committee of the CPC and the State Council, promote the increase of peasants' income, the State Administration of Taxation has formulated a series of preferential taxation policies involving agriculture. We hereby announce the relevant issues as follows regarding the implementation of the preferential taxation policies:

I. Where a peasant who engages in planting, aquatic breeding, animal or poultry farming, or fishing has paid agricultural tax or animal husbandry tax for the income he gains, he does not have to pay individual income tax any more.

II. After the tax on special agricultural products is cancelled, and the agricultural tax or animal husbandry tax is reduced or exempted, a peasant still does not have to pay individual income tax for the time being for the income he gains from special agricultural products or from engaging in planting, aquatic breeding, animal or poultry farming, or fishing.

III. After the tax on special agricultural products is cancelled, and the agricultural tax or animal husbandry tax is reduced or exempted, a peasant still does not have to pay individual income tax for the time being for the income he gains from selling his self-produced agricultural products.

IV. If a peasant who sells aquatic products, livestock products, vegetables, fruits, foodstuff or other agricultural products with the monthly sales amount being less than 5000 Yuan or the sales amount of each time (day) being less than 200 Yuan, he does not have pay value-added tax.

If a peasant simultaneously sells other non-agricultural products when selling the aforementioned agricultural products, and the sales amount of the agricultural products accounts for more than a half of the whole sales amount, with the monthly sales amount less than 5000 Yuan or the sales amount of each time (day) less than 200 Yuan, he does not have pay value-added tax, either.

V. The floating rural small retailers without any fixed production and management place do not have to make tax registration.

In order to guarantee the earnest implementation of all the above items of policies, five strict work requirements are hereby proposed to the taxation organs at all levels:

1. They should strictly implement the policies that no individual income tax is levied on the income gained by the peasants who enter various markets to sell their self-produced agricultural products. Any taxation organ that has no evidence to prove that a seller is a "peasant" and that he is not selling "self-produced agricultural products" shall implement the policy by considering the circumstance as "the peasant is selling self-produced agricultural products";

2. They should, in accordance with the provisions, rapidly adjust the minimum threshold of the agricultural products sold by individual industrial and commercial households and by individuals to the proper position. If the sales amount does not reach the minimum threshold, any value-added tax shall be exempted, and no modified policy shall be applied with any reason;

3. They shall make great efforts to carry out the "work above board", and handle taxation affairs publicly. If a taxation organ considers that the sales amount of the agricultural products sold by an individual industrial and commercial household or by an individual has reached the minimum threshold and it is necessary to levy taxes on a fixed-sum basis at regular intervals, it shall, when verifying the fixed sum, fully listen to the opinions of the party and of all sectors of the society. The taxation organ shall publicize the fixed sum in a proper way;

4. A taxation organ shall set up a special telephone line for supervision and offence exposure, announce the telephone number to the public, and consciously accept the supervision; and

5. A taxation organ shall carefully check the offence exposure it has received, and firmly correct improper implementation or discretional modification of the policies, as well as severely punish the relevant liable persons.