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100+ Free CICPA Tax Law (China) Practice Questions

Prepare for the China Certified Public Accountant Uniform Examination — Tax Law (注册会计师全国统一考试专业阶段 — 税法) exam with instant access — no signup required.

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2026 Statistics

Key Facts: CICPA Tax Law (China) Exam

60 / 100

Passing Score (60% threshold)

Chinese Institute of Certified Public Accountants (CICPA)

5 Years

Rolling Validity Window for Professional Stage Subjects

Ministry of Finance CPA Examination Regulations

120 Mins

Examination Duration (2.0 Hours)

CICPA Examination Administration Guidelines

18 Taxes

Statutory Chinese Taxes Covered in Syllabus

State Taxation Administration (STA) & MOF

August

Annual Nationwide Examination Administration Month

National CPA Examination Committee Announcement

The CICPA Tax Law exam is China's official statutory professional examination for CPAs and tax advisors. Administered by CICPA and MOF, it tests China's 18 substantive taxes—especially VAT, Consumption Tax, EIT, IIT, and Land Appreciation Tax—along with customs tariffs, international tax treaties, and tax collection administration through rigorous calculation analysis and case applications.

Sample CICPA Tax Law (China) Practice Questions

Try these sample questions to test your CICPA Tax Law (China) exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1Under the general principles of Chinese tax jurisprudence (税法基本原则), which core principle dictates that all statutory tax elements (课税要素) must be explicitly established by primary legislation enacted by the National People's Congress or its Standing Committee, prohibiting administrative authorities from creating taxes without statutory delegation?
A.Principle of Tax Legality (税收法律主义 / 税收法定原则)
B.Principle of Fair Taxation (税收公平主义)
C.Principle of Substantive Taxation (实质课税原则)
D.Principle of Tax Efficiency (税收效率原则)
Explanation: The Principle of Tax Legality (税收法律主义 / 税收法定原则) is the cornerstone of Chinese tax jurisprudence. It encompasses three essential sub-principles: (1) Statutory Tax Elements (课税要素法定原则) — all essential elements of taxation (taxpayers, taxable objects, tax bases, and tax rates) must be formulated by legislative statutory acts; (2) Clarity of Tax Elements (课税要素明确原则) — tax statutory provisions must be clear and unambiguous to ensure predictability; and (3) Lawful Assessment and Collection (依法稽征原则) — tax administrative authorities must enforce taxes strictly in accordance with statutory procedures without arbitrary waiver or levy.
2A Chinese manufacturing enterprise entered into a nominal equipment lease agreement with an affiliated intermediary shell company in a low-tax overseas jurisdiction, while the actual equipment was directly procured and deployed in mainland China without genuine commercial substance. Under Chinese tax application principles (税法适用原则), which principle empowers the State Taxation Administration to disregard the formal contract and reclassify the transaction according to its true economic reality?
A.Principle of Legal Non-retroactivity (法律不溯及既往原则)
B.Principle of Substantive Taxation (实质课税原则)
C.Principle that Special Law Takes Precedence over General Law (特别法优于普通法原则)
D.Principle that Subsequent Law Takes Precedence over Prior Law (后法优于先法原则)
Explanation: The Principle of Substantive Taxation (实质课税原则) stipulates that when legal form deviates from economic substance, tax assessment must be determined according to the actual economic substance and genuine commercial reality of the transaction. In corporate restructuring and cross-border transfer pricing anti-avoidance investigations, tax authorities apply this principle to look through artificial shell arrangements lacking business substance.
3In Chinese tax law application, which combination accurately describes the legal doctrines governing procedural vs. substantive tax rules when new tax regulations are enacted?
A.Substantive rules follow the new law, while procedural rules follow the old law (实体从新，程序从旧)
B.Substantive rules follow the old law, while procedural rules follow the new law (实体从旧，程序从新)
C.Both substantive and procedural rules must strictly follow the old law in all circumstances
D.Both substantive and procedural rules must automatically apply retroactively under the new law
Explanation: Under Chinese tax legal doctrines, tax law conflicts over time follow the rule: 'Substantive rules follow the old law, while procedural rules follow the new law' (实体从旧，程序从新). Substantive tax liabilities (such as tax rates, taxable scope, and deduction standards) are governed by the law in effect when the taxable act occurred (protecting taxpayer expectations against retroactivity). In contrast, procedural rules (such as tax collection procedures, audit protocols, and appeal timelines) immediately apply the newest procedural regulations from their effective date.
4Among the statutory elements of substantive tax law (税收实体法要素), which element serves as the fundamental qualitative criterion that distinguishes one specific tax category from another and establishes the exact economic scope of taxation?
A.Taxpayer (纳税主体 / 纳税义务人)
B.Tax Object (征税对象 / 课税客体)
C.Tax Base (计税依据)
D.Tax Rate (税率)
Explanation: The Tax Object (征税对象 / 课税客体) is the qualitative core element of tax law. It defines the target object or legal transaction upon which tax is levied (e.g., value added for VAT, consumption of specific luxury items for Consumption Tax, net profit for EIT, net appreciation for LAT). The tax object is the fundamental basis that classifies and distinguishes different taxes from one another in the Chinese tax system.
5Under the current fiscal revenue-sharing system between the Central Government and Local Governments in China (分税制财政管理体制), which of the following taxes is classified as a 100% Central Fixed Revenue (中央政府固定收入)?
A.Value-Added Tax (增值税)
B.Consumption Tax (消费税)
C.Enterprise Income Tax (企业所得税)
D.Land Appreciation Tax (土地增值税)
Explanation: Under China's fiscal system: (1) Consumption Tax (消费税), Vehicle Purchase Tax (车辆购置税), and Customs Duties (关税) are 100% Central Fixed Revenues. (2) Value-Added Tax (增值税) is a shared tax split 50% Central and 50% Local. (3) Enterprise Income Tax (企业所得税) and Individual Income Tax (个人所得税) are shared taxes split 60% Central and 40% Local. (4) Land Appreciation Tax (土地增值税), Real Estate Tax (房产税), Deed Tax (契税), and Urban Land Use Tax (城镇土地使用税) are 100% Local Fixed Revenues.
6Under progressive tax rate theory in Chinese tax law, what is the mathematical purpose and derivation of the Quick Deduction (速算扣除数) in excess progressive tax rate schedules (超额累进税率)?
A.It represents a statutory tax rebate granted unconditionally to low-income taxpayers.
B.It is a mathematical correction factor equal to the difference between tax calculated on the total base under the highest applicable bracket rate and the sum of taxes calculated progressively across each lower tier.
C.It is an inflation index adjustment factor recalculated annually by the State Taxation Administration.
D.It represents the statutory standard basic deduction allowable for business expenditure amortizations.
Explanation: The Quick Deduction (速算扣除数) simplifies the calculation of excess progressive tax brackets. When total taxable income is multiplied directly by the marginal tax rate of the highest applicable bracket ($Taxable \ Income \times Rate_n$), the portions of income belonging to lower tiers are erroneously taxed at the higher marginal rate rather than their respective lower bracket rates. The Quick Deduction for tier $n$ is mathematically derived as: $QD_n = QD_{n-1} + Threshold_{n-1} \times (Rate_n - Rate_{n-1})$. Subtracting the Quick Deduction ($Taxable \ Income \times Rate_n - QD_n$) produces the exact progressive tax amount in a single multiplication.
7A general taxpayer provides various commercial services in China. According to PRC VAT regulations, which of the following transactions is correctly matched with its statutory standard VAT tax rate?
A.Leasing of tangible movable property (有形动产租赁) — 13%
B.Construction services (建筑服务) — 6%
C.Postal and basic telecommunications services (邮政与基础电信服务) — 13%
D.Modern consulting and financial services (现代咨询服务与金融服务) — 9%
Explanation: Under the current PRC Value-Added Tax rate schedule: (1) 13% applies to sales of general goods, processing/repair labor services, and leasing of tangible movable property (有形动产租赁); (2) 9% applies to agricultural products, books/utilities, transportation services, postal services, basic telecommunications services, construction services, real estate leasing/sales, and transfer of land use rights; (3) 6% applies to modern services (R&D, consulting, information technology, cultural/creative), financial services, lifestyle services, and value-added telecommunications services.
8A machinery manufacturer (a VAT general taxpayer) signs a sales and installation contract to sell self-produced industrial automated machinery for RMB 1,130,000 (VAT inclusive) and simultaneously provides equipment installation services for RMB 109,000 (VAT inclusive). Under Chinese VAT regulations governing concurrent operations (兼营) versus mixed sales (混合销售), how should VAT be calculated if the company accounts for the machinery sales and installation revenue separately?
A.The entire RMB 1,239,000 must be taxed as a mixed sale at the 13% rate because the seller is a goods manufacturer.
B.The entire RMB 1,239,000 must be taxed at the 9% construction rate because installation is the final delivery stage.
C.The machinery sales are subject to 13% VAT [RMB 1,130,000 / 1.13 * 13% = RMB 130,000], and the installation services are separately taxed as construction services at 9% [RMB 109,000 / 1.09 * 9% = RMB 9,000], for a total output VAT of RMB 139,000.
D.The installation services are completely exempt from VAT because they are bundled with machinery sales.
Explanation: According to STA Announcement [2017] No. 11 and general VAT rules, when a general taxpayer sells self-produced goods and provides concurrent installation services: (1) if sales of goods and installation services are separately accounted for, they are treated as concurrent operations (兼营), applying 13% to goods sales and 9% (or 3% simplified if eligible) to installation/construction services; (2) Calculation: Output VAT on goods = RMB 1,130,000 / 1.13 * 13% = RMB 130,000; Output VAT on installation = RMB 109,000 / 1.09 * 9% = RMB 9,000; Total Output VAT = RMB 130,000 + RMB 9,000 = RMB 139,000.
9Under Article 5 of the PRC Value-Added Tax Law, effective January 1, 2026, which activity is a deemed taxable transaction (视同应税交易) subject to output VAT?
A.Distributing outward-purchased consumer goods directly to company employees as collective welfare (集体福利)
B.Gratuitously donating outward-purchased consumer goods to an independent university
C.Purchasing raw materials and storing them in an overseas bonded warehouse
D.Using outward-purchased office supplies for daily internal administrative operations
Explanation: Article 5 of the VAT Law treats a unit or individual business's gratuitous transfer of goods as a deemed taxable transaction, so the donation is subject to output VAT. The 2026 law no longer uses the repealed provisional rules' broader list: purchased goods used internally for collective welfare are governed through input-tax restrictions, while mere storage or internal office consumption is not a deemed transaction.
10What is the statutory annual taxable sales threshold (年应税销售额标准) for classification as a General VAT Taxpayer (增值税一般纳税人) in China, and what is the rule regarding reverting to Small-Scale Taxpayer (小规模纳税人) status once registered?
A.RMB 1,000,000; an enterprise can freely switch back and forth between general and small-scale status each tax quarter.
B.RMB 5,000,000; once an enterprise has registered as a general taxpayer, it cannot revert to small-scale taxpayer status unless specific temporary state transition policies apply.
C.RMB 8,000,000; general taxpayer status is compulsory only for state-owned manufacturing enterprises.
D.RMB 3,000,000; enterprises providing modern services are permanently exempt from the general taxpayer threshold.
Explanation: Under Caishui [2018] No. 33 and current VAT regulations, the unified statutory threshold for general taxpayer qualification across all industries (manufacturing, commercial, and services) is annual taxable sales exceeding RMB 5,000,000. Once an enterprise completes general taxpayer registration, it cannot arbitrarily revert to small-scale taxpayer status, barring explicit temporary national transition policies.

About the CICPA Tax Law (China) Exam

The China Certified Public Accountant Uniform Examination — Tax Law (注册会计师全国统一考试专业阶段 — 税法) is one of the six foundational subjects in the Professional Stage of the prestigious CICPA qualification. Administered annually by the Chinese Institute of Certified Public Accountants under the authority of the Ministry of Finance, the Tax Law examination rigorously tests a candidate's comprehensive mastery of the People's Republic of China's substantive tax statutes, procedural tax administration laws, and complex corporate tax calculations. The curriculum encompasses all 18 active Chinese taxes with primary emphasis on the four major pillars of Chinese taxation: Value-Added Tax (增值税), Consumption Tax (消费税), Enterprise Income Tax (企业所得税), and Individual Income Tax (个人所得税), along with Land Appreciation Tax (土地增值税), Customs Tariffs, International Taxation, and the Law on the Administration of Tax Collection (税收征收管理法). Candidates must demonstrate flawless quantitative accuracy in tax adjustments, input credits, withholding calculations, and tax planning compliances.

Assessment

Single-Choice Questions (单选题: 26 questions, 26 pts); Multiple-Choice Questions (多选题: 16 questions, 24 pts); Calculation Analysis Questions (计算分析题: 4 questions, 20 pts); Comprehensive Case Questions (综合题: 2 questions, 30 pts). Total 100 points, 120 minutes.

Time Limit

120 minutes (2.0 hours)

Passing Score

60 points out of 100 (60% passing threshold, valid for 5 consecutive years in the Professional Stage)

Exam Fee

¥60–¥90 RMB per subject (determined by provincial institutes of certified public accountants) (National CPA Examination Committee of the Ministry of Finance / Chinese Institute of Certified Public Accountants (CICPA))

CICPA Tax Law (China) Exam Content Outline

6%

Tax Principles and the Chinese Tax System (税法总论与现行税制体系)

Fundamental tax jurisprudence: principles of legality, fairness, substantive taxation, and efficiency; tax elements (taxpayer, tax object, tax base, tax rate); classification into direct/indirect, central/local/shared taxes; and central-local fiscal revenue distribution.

22%

Value-Added Tax Law (增值税法)

Taxable transactions, 13%/9%/6% tax rates and 3%/5% levy rates, general vs small-scale taxpayer status, mixed sales vs concurrent operations, deemed sales, composite taxable prices, input tax credits (special invoices, transport, agricultural 9%+1%), input transfer-out for non-normal losses and common allocations, end-of-period retention refunds, simplified tax methods, and export VAT 'exempt, credit, refund' mechanics.

10%

Consumption Tax Law (消费税法)

The 15 statutory taxable items, multi-tier collection stages (production, wholesale for cigarettes/e-cigarettes, retail for gold/platinum jewelry and super-luxury cars), ad valorem, specific, and compound methods (Baijiu and Cigarettes), composite taxable prices for self-use and commissioned processing, and previously paid consumption tax deductions.

22%

Enterprise Income Tax Law (企业所得税法)

Resident vs non-resident enterprises, revenue recognition under accrual principles, tax-exempt vs non-taxable income, statutory expense caps (Three Funds, business entertainment, advertising and publicity, public welfare donations), R&D 100% super-deductions, fixed asset tax lives and accelerated depreciation, general vs special corporate restructuring, loss carryforwards (5 vs 10 years for HNTEs), thin capitalization, CFC rules, and transfer pricing adjustments.

14%

Individual Income Tax Law (个人所得税法)

Tax residence判定 (183-day rule and 6-year foreign national rule), comprehensive income conversion rules, cumulative withholding method for wages, labor remuneration progressive withholding, seven special additional deductions, preferential annual one-time bonus calculations, property leasing and transfer taxation, business income, and annual reconciliation filing procedures.

12%

Urban Construction, Land, and Property Taxes (城建税、土地增值税、房产税、契税、印花税)

Urban Maintenance and Construction Tax and Education Surcharges on actual VAT/CT paid; Land Appreciation Tax (LAT) five statutory deductions for developers vs non-developers and four-tier progressive tax rate calculation (30% to 60%); Real Estate Tax ad valorem (1.2%) vs from-rental (12%/4%); Urban Land Use Tax; Deed Tax; and Stamp Duty.

4%

Resource, Environmental, and Vehicle Taxes (资源税、环保税、车船税、车辆购置税)

Resource Tax ad valorem and specific computations; Environmental Protection Tax pollution equivalents; Vehicle and Vessel Tax; and Vehicle Purchase Tax (10% on VAT-exclusive purchase price).

4%

Customs Law and Tariffs (关税法)

Import dutiable value (CIF) inclusions and exclusions, customs duty calculation, import link composite taxable price for VAT and Consumption Tax, and export dutiable value (FOB net of export tariff).

4%

International Taxation (国际税收)

Source and residence tax jurisdictions, direct foreign tax credit, indirect foreign tax credit (up to 3 tiers of >= 20% foreign subsidiaries), comprehensive credit limitation formula, permanent establishment (PE) rules, and beneficial ownership status under double tax treaties.

2%

Tax Collection and Administration (税收征收管理法)

Tax registration, accounting books retention (10 years), tax preservation measures vs mandatory enforcement measures, priority of tax claims, daily 0.05% late payment surcharges, tax audit statutes of limitations, and 'Reconsideration First' pre-conditions for tax disputes.

How to Pass the CICPA Tax Law (China) Exam

What You Need to Know

  • Passing score: 60 points out of 100 (60% passing threshold, valid for 5 consecutive years in the Professional Stage)
  • Assessment: Single-Choice Questions (单选题: 26 questions, 26 pts); Multiple-Choice Questions (多选题: 16 questions, 24 pts); Calculation Analysis Questions (计算分析题: 4 questions, 20 pts); Comprehensive Case Questions (综合题: 2 questions, 30 pts). Total 100 points, 120 minutes.
  • Time limit: 120 minutes (2.0 hours)
  • Exam fee: ¥60–¥90 RMB per subject (determined by provincial institutes of certified public accountants)

Keys to Passing

  • Work through all 100 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CICPA Tax Law (China) Study Tips from Top Performers

1Master Tax Computation Formulas: Memorize key algebraic formulas, including the Baijiu compound consumption tax composite price formula, the VAT agricultural product 9%+1% deduction mechanism, the 100% R&D super-deduction, and the LAT four-tier quick deduction formula (5%, 15%, 35%).
2Distinguish Statutory Expense Ceilings under EIT: Maintain absolute clarity on EIT deduction limits: Employee Welfare (14% of wages), Labor Union (2%), Employee Education (8%, indefinite carryforward), Business Entertainment (60% of actual, capped at 5‰ of sales revenue), Advertising (15% of sales, indefinite carryforward), and Public Welfare Donations (12% of accounting profit, 3-year carryforward).
3Internalize VAT Input Transfer-Out and Apportioning Rules: Learn to identify non-normal losses (mismanagement and unlawful acts require input transfer-out; natural disasters do not) and apply the proportion formula for common expenditures used in mixed taxable/exempt operations.
4Understand IIT Withholding vs Annual Reconciliation: Master the cumulative withholding method for wages, the 20% expense deduction for labor/author/royalty income, the seven special additional deductions, the separate annual bonus preferential policy, and the exemption thresholds for annual reconciliation.
5Review Corporate Restructuring Tax Conditions: Differentiate between General Tax Treatment (fair value gain recognition) and Special Tax Treatment (>=85% equity consideration, >=50% equity/assets acquired, continuous 12-month operation, step-in-shoes historical tax basis).
6Pay Attention to Procedural Rules and Collection Powers: Remember the strict pre-condition rule ('Reconsideration First') for tax payment disputes versus optional direct litigation for administrative penalties and enforcement measures.

Frequently Asked Questions

What is the CICPA Tax Law examination and what is its passing standard?

The CICPA Tax Law examination (注册会计师专业阶段 — 税法) is one of the six compulsory subjects in the Professional Stage of the National Uniform CPA Examination in China, administered by the Chinese Institute of Certified Public Accountants (CICPA) under the Ministry of Finance. The exam has a duration of 120 minutes and a total score of 100 points. The passing score is 60 points (60%). Candidates must pass all six Professional Stage subjects within a rolling 5-year window to qualify for the Professional Stage Certificate and become eligible for the Comprehensive Stage.

What is the official format and question distribution of the CICPA Tax Law exam?

The official computer-based examination consists of four question types: Single-Choice Questions (单项选择题: 26 questions, 26 points), Multiple-Choice Questions (多项选择题: 16 questions, 24 points), Calculation Analysis Questions (计算分析题: 4 questions, 20 points), and Comprehensive Case Questions (综合题: 2 questions, 30 points). The test emphasizes numerical calculations, tax adjustment schedules, and legal analysis across multiple interacting taxes.

Which taxes carry the highest weight on the CICPA Tax Law examination?

The four pillar taxes—Value-Added Tax (VAT / 增值税), Enterprise Income Tax (EIT / 企业所得税), Individual Income Tax (IIT / 个人所得税), and Consumption Tax (消费税)—collectively account for approximately 70% to 75% of the total examination score. Land Appreciation Tax (LAT / 土地增值税) and International Taxation are also heavily tested in calculation analysis and comprehensive questions.

How are complex calculations tested in this OpenExamPrep practice bank?

This practice bank provides 100 comprehensive multiple-choice questions reflecting the full breadth and depth of the CICPA blueprint. It includes full step-by-step arithmetic derivations for complex tax problems, such as VAT export refund 'exempt, credit, refund' formulas, Baijiu compound consumption tax, EIT taxable income expense ceiling adjustments, R&D 100% super-deductions, special corporate restructuring non-equity consideration gains, IIT cumulative wage withholding algorithms, LAT four-tier progressive tax brackets, and foreign tax credit limitations.

Why is this OpenExamPrep question bank presented in English?

While the official CICPA examination is conducted in Simplified Chinese, this practice module is specifically adapted into English to serve bilingual tax professionals, international accountants, CPA candidates preparing for cross-border China tax advisory, and multinational corporate tax managers. Every question meticulously incorporates official Chinese tax terms (e.g., 销项税额, 进项税额转出, 免抵退税, 业务招待费, 研发加计扣除, 专项附加扣除, 土地增值税, 受控外国企业) and statutory citations in parentheses for effortless cross-referencing.