By Victor Tu
The Environmental Protection Tax (EPT) of the Peoples Republic of China (PRC) will take effect from January 1, 2018. It was passed by the Standing Committee of the National Peoples Congress on December 25, 2016. And it has become the 18th Tax in mainland China, since the Business Tax has been completely phased out.
Today we will take a look at the New Tax as the way we always analyze a tax.
Why should we pay for the EPT?
In order to protect and improve the environment, to reduce pollutant emission and promote the construction of ecology.
Who should pay the EPT?
The taxpayer who discharges directly the taxable pollutants into the sea, land or air in the territory of PRC and other areas under the jurisdiction of PRC.
What should we pay the EPT for?
What’s tax rate for the EPT?
1. For Air pollutants, it is based on the equivalent weight (EW) of the pollution from RMB 1.2 to RMB 12 for each EW
2. For Water contaminants, it is based on the EW as well and from RMB 1.4 to RMB 14 for each EW
3. Solid Waste refers to Coal Gangue, Tailings, Smelting slag① and Hazardous waste. The Rate applies RMB 5, RMB 15, RMB 25, and RMB 1000 per Ton respectively.
4. Noise refers to Industrial Noise and it is based on the level of the exceeding , the lowest rate is RMB 350 per month (exceeding 1-3 decibel) and highest rate is RMB 11200 per month (exceeding 16 decibel)
①: Smelting slag, Ash and others (inclusive of Semi-solid and Liquid waste)
Who could be exempt of the EPT?
1. The taxpayer who discharges the taxable pollutants to the Centralized Treatment Center of sewage and household waste.
2. The taxpayer who restore or dispose the solid waste in the facility or the place which is complies with the national and local environmental protection standards.
Anyway, the green issue is one of the most popular topics in most countries, China is no exception. If you have any further questions about EPT and understand the details, please visit our website www.victortruman.com to contact us. Thanks.
Keynotes: Ningbo CPA , Ningbo Accounting Firm , Ningbo Certified Public Accountants, Ningbo Tax Agents, Ningbo Tax Experts, Victor Tu Ningbo, China VAT, China Tax, China GAAP,
Victor & Truman，CPAs 宁波纬度会计师事务所（普通合伙）