Revised Provisional Tax Regulations

(July 15, 1932)

Chapter I General Principles

Article 1 A unified progressive tax is established. All land taxes, poll taxes and grain levies, likin, and miscellaneous exorbitant taxes and levies of the reactionary Kuomintang warlord government are abolished.

Article 2 Categories of taxes: They are divided into three types: commercial tax, agricultural tax, and industrial tax.

Chapter II Commercial Tax

Article 3 Tax rates: Commercial capital tax is provisionally divided into fourteen brackets, from 101 yuan to 500,000 yuan. The tax rate is set according to the bracket, and the income tax on capital profits is levied (i.e., the tax is levied on the total profit income, not on the capital). For capital exceeding 500,000 yuan, the tax rate shall be set separately. The schedule is listed below:

Commercial Tax

| Bracket | Capital | Tax Rate |
| --- | --- | --- |
| 1st Bracket | 101 to 200 yuan | 6% |
| 2nd Bracket | 201 to 400 yuan | 7% |
| 3rd Bracket | 401 to 700 yuan | 8% |
| 4th Bracket | 701 to 1,000 yuan | 9% |

| Bracket | Capital | Tax Rate |
| --- | --- | --- |
| 5th Bracket | 1,001 to 1,500 yuan | 10% |
| 6th Bracket | 1,501 to 3,000 yuan | 11% |
| 7th Bracket | 3,001 to 5,000 yuan | 12% |
| 8th Bracket | 5,001 to 10,000 yuan | 13% |
| 9th Bracket | 10,001 to 20,000 yuan | 15% |
| 10th Bracket | 20,001 to 30,000 yuan | 17% |
| 11th Bracket | 30,001 to 50,000 yuan | 19% |
| 12th Bracket | 50,001 to 80,000 yuan | 21% |
| 13th Bracket | 80,001 to 100,000 yuan | 23% |
| 14th Bracket | 100,001 to 500,000 yuan | 25% |

Article 4 Method of collection: Based on the business license obtained by the shop from the government financial organ, the tax rate is determined according to the amount of its capital, and then the business income tax is levied according to the tax rate.

Article 5 Collection period: Tax shall be collected once a month. Seasonal businesses must also be levied on a per-season basis.

Article 6 Tax exemption measures:

(a) Consumer cooperatives organized in accordance with the cooperative regulations promulgated by the government, and subsequently approved and registered by the county government, may be reported by the county government to the respective provincial government for permission to be exempted from tax.

(b) Itinerant peddlers with capital under 100 yuan and peasants directly selling their surplus products are all uniformly exempted from commercial tax.

(c) Those with commercial capital under 100 yuan are uniformly exempted from tax.

(d) Merchants encountering peril or suffering accidental damage, who report to the government and whose situation is verified through investigation, may be granted tax exemption.

(e) For certain essential daily commodities and military supplies, tax exemption may be announced at any time by government decree.

Chapter III Agricultural Tax

(Note) At present, rural production and commodity values are extremely complex, making it impossible to stipulate a unified taxation method. Only the principles for agricultural tax collection can be stipulated. Each province may, based on these principles and according to local conditions, determine an appropriate agricultural tax and report it to the Central Government for approval and implementation.

Article 7 After peasants receive their land distribution, the annual harvest of the main production of the entire family shall be averaged per capita for the whole family population to determine the annual harvest quantity and necessary living expenses per person. Based on this standard, the minimum amount at which taxation begins for each person and the progressive tax shall then be determined. However, for rich peasants, the calculation of harvest and tax standard shall be averaged according to labor power (and not averaged per capita).

Article 8 Tax shall be levied only on the main production (grain and wheat). Tax on secondary production is temporarily not levied. However, where grain or wheat is harvested twice annually, tax shall be levied twice.

Article 9 Tea plantations, cotton and hemp fields, and orchards, when distributed as paddy or wheat land and become the main production, shall also be taxed.

Article 10 Family members of Red Army soldiers (limited to their own parents, wives, children, and younger siblings without labor capacity) are exempted from tax in accordance with the Regulations on Preferential Treatment for the Red Army.

Article 11 Hired farmhands, as well as hired workers and laborers who have received land distribution, together with their wives, are uniformly exempted from tax.

Article 12 Poor peasants whose income has reached the taxable amount but who still cannot sustain their family's livelihood may have their tax individually reduced or exempted upon decision by the township Soviet.

Article 13 Taxation on former rich peasants shall be made particularly heavier.

Article 14 In areas suffering from floods, droughts, or other disasters, or devastated by the White bandits, tax shall be exempted or reduced according to the severity of the disaster.

Article 15 Increased agricultural income resulting from improved seeds or improved cultivation shall be exempted from tax.

Revised Provisional Tax Regulations

Article 16 Agricultural products harvested from newly reclaimed wasteland shall be exempted from tax for three years. For rich peasants, tax shall be reduced or exempted for one year depending on the harvest situation.

Article 17 The method and period for agricultural tax collection shall be announced by the Central Ministry of Finance. However, in isolated Soviet areas otherwise obstructed, it may be decided and announced by the local supreme government based on local conditions. When collecting tax, the tax amount payable per person shall be levied from each household according to the tax rate regulations.

Article 18 Agricultural tax shall be collected in cash, limited to the national currency of the Chinese Soviet Republic. Miscellaneous other currencies shall not be accepted.

Chapter IV Industrial Tax

Article 19 Production cooperatives that have been approved and filed by the county government may be reported by the county government to the provincial government for permission to be exempted from tax.

Article 20 At present, in order to promote industrial development in the Soviet areas, the factory tax on industrial goods is temporarily exempted.

Article 21 For industrial income tax, the tax rate shall be set according to the amount of capital, and the tax shall be levied on its profits. The tax rate shall be stipulated separately, but must be lighter than the commercial tax.

Chapter V Supplementary Provisions

Article 22 These Tax Regulations shall take effect from the date of promulgation.

Chairman of the Central Executive Committee Mao Zedong

Vice Chairmen Xiang Ying Zhang Guotao

July 15, 1932