100+ Free Tax Law I Practice Questions
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Key Facts: Tax Law I Exam
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Full Mark / Passing Score
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Examination Fee
Major Tax Categories Tested
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The China Certified Tax Adviser (CTA) Tax Law I paper is the premier indirect tax examination in China, covering VAT (45%), Consumption Tax (20%), Land Appreciation Tax (15%), Urban Construction/Surcharges (5%), Resource Tax (4%), Environmental Tax (3%), Tariffs/Vehicle Tax (3%), and Tax Principles (5%). Passing requires 84/140 points (60%) under a 5-year rolling cycle. This 100-question English adaptation features realistic quantitative tax calculations and Chinese statutory citations.
Sample Tax Law I Practice Questions
Try these sample questions to test your Tax Law I 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 tax law application in China, when a new tax procedural regulation is enacted, which principle dictates that the new procedural rules apply immediately to ongoing tax administrative procedures, while substantive tax liabilities are determined by the laws in effect when the taxable facts occurred?
2Which basic principle of tax law requires that the essential elements of taxation (such as taxpayers, taxable objects, tax rates, and tax reduction/exemption rules) must be explicitly stipulated by national laws enacted by legislative organs rather than administrative discretion?
3When a specific tax provision in a specialized tax statute conflicts with a general provision in a broader baseline statute of the same legislative hierarchy, which tax law application principle directs that the specific tax provision takes precedence?
4In the hierarchy of Chinese tax legislation, which of the following enactments possesses the legal status of an Administrative Regulation (税收行政法规)?
5Under the PRC Tax Collection and Administration Law, if a taxpayer has a dispute with the competent tax authority regarding the confirmation of a tax payment obligation (such as tax base or applicable tax rate), what mandatory prerequisite must be fulfilled before applying for administrative reconsideration?
6Enterprise A is dissatisfied with a specific tax penalty decision made by the District Tax Bureau of City B. To which authority should Enterprise A submit its application for tax administrative reconsideration?
7Under the PRC VAT regulations, what is the annual taxable sales revenue threshold for determining whether a business must register as a VAT general taxpayer (增值税一般纳税人)?
8In June 2026, Company A (a general taxpayer) transfers shares of a listed company for RMB 1,200,000 (selling price). The original purchase price of these shares was RMB 1,000,000. In the previous month (May 2026), Company A had an unabsorbed negative balance from financial goods transfer of RMB 50,000. What is Company A's output VAT on financial goods transfer for June 2026?
9Which of the following telecommunications and IT services is subject to the 9% VAT statutory tax rate under the Chinese VAT regime?
10A machinery leasing company (a VAT general taxpayer) enters into an operating lease agreement with a client in May 2026 to lease heavy industrial excavators (tangible movable property) for 6 months, receiving a total rental fee of RMB 339,000 (tax-inclusive). What is the applicable VAT rate and the output VAT for this transaction?
About the Tax Law I Exam
The China Certified Tax Adviser (CTA) Qualification Examination — Tax Law I (全国税务师职业资格考试·税法一) is the official national professional licensing paper covering indirect taxes, property appreciation taxes, and environmental/resource levies in the People's Republic of China. Administered by the China Certified Tax Agents Association (CCTAA) under the supervision of the State Taxation Administration (STA) and Ministry of Human Resources and Social Security (MOHRSS), this credential certifies expert competence in tax compliance, corporate tax planning, indirect tax filings, and tax audit representation. The syllabus encompasses Tax Principles & Legal Systems (5%), Value-Added Tax (45%), Consumption Tax (20%), Urban Maintenance & Construction Tax and Education Surcharges (5%), Land Appreciation Tax (15%), Resource Tax (4%), Environmental Protection Tax (3%), and Vehicle Purchase Tax & Customs Tariffs (3%). Note: While the official national examination is set in Chinese, this practice module provides a complete English-language MCQ study adaptation designed for bilingual tax practitioners, multinational corporate controllers, cross-border tax advisers, and candidates preparing for the CTA credential.
Assessment
National computer-based examination (无纸化机考) administered in a single 150-minute testing session. Total score is 140 points across 80 objective test items.
Time Limit
150 minutes (2.5 hours)
Passing Score
84 out of 140 points (60% passing benchmark)
Exam Fee
¥93 RMB (China Certified Tax Agents Association (中国注册税务师协会 / CCTAA) & State Taxation Administration (国家税务总局))
Tax Law I Exam Content Outline
tax-principles-legal-system
Statutory principles of tax law (statutory taxation, tax fairness, economic efficiency, substantial taxation); legal application principles (legal supremacy, special law overrides general law, non-retroactivity, substantive old law and procedural new law, procedural priority); tax legal relationships, taxpayers, tax objects, tax bases, tax rate structures; legislative delegation hierarchy (Laws, Administrative Regulations, Departmental Rules, Normative Documents); and tax enforcement jurisdiction and administrative reconsideration prerequisites.
value-added-tax
Taxpayers (general vs small-scale threshold of RMB 5 million); scope of taxation for goods, processing/repair, and modern/financial/lifestyle services; mixed sales vs concurrent operations; deemed sales rules; statutory tax rates (13%, 9%, 6%, 0%) and levy rates (3%, 5%); output VAT and extra-charges (价外费用); creditable input VAT documents (special VAT invoices, customs certificates, domestic passenger tickets, road tolls); agricultural products deemed deduction (9%/10%); input VAT non-deductible scope and transfer out (进项税额转出); advanced manufacturing additional deduction (加计抵减 5%/15%); retained input tax refund (留抵退税); simple taxation methods (3%, 5%, used assets 2%, second-hand cars 0.5%); export refund 'Exemption, Credit, Refund' (免、抵、退) and 'Exemption and Refund' (免退) calculations; and full digitised electronic invoices (数电发票).
consumption-tax
15 taxable categories (tobacco, alcohol, high-end cosmetics, jewelry, firecrackers, refined oil, small cars, motorcycles, golf equipment, high-end watches, yachts, disposable chopsticks, solid wood flooring, batteries, coatings); taxing links (production/sales, consignment processing, import, wholesale, retail); ad valorem, specific, and compound tax calculations (white spirits 20% + RMB 0.5/500g, cigarettes); composite tax base for consignment processing and import link; wholesale link taxation (cigarettes 11% + specific, e-cigarettes 11%); retail link taxation (gold/platinum/diamond jewelry 5%, ultra-luxury cars 10%); and deduction of previously paid consumption tax on continuous production of taxable consumer goods.
urban-construction-tax-education-surcharge
Urban Maintenance & Construction Tax (UMCT) Law; tax base determination based on actually paid VAT and Consumption Tax plus export refund 'Exemption and Credit' tax (免抵税额); statutory exclusion of import-link taxes, penalties, and late interest; tiered regional tax rates (7% city, 5% county/town, 1% other areas); Education Surcharge (3%) and Local Education Surcharge (2%) calculations; and special tax reduction/exemption rules.
land-appreciation-tax
Scope of taxable real estate transfers and taxpayers; revenue recognition; deductible items for real estate development enterprises (land acquisition costs, real estate development costs, development expenses up to 5%/10%, taxes and surcharges, and 20% additional deduction); deductible items for transfer of old property/existing buildings (evaluated replacement cost × condition discount factor, or purchase invoice + 5%/yr markup + deed tax); calculation of appreciation amount and appreciation rate; four-tier progressive tax rates (30%, 40%-5%, 50%-15%, 60%-35%); 20% appreciation rate exemption for ordinary residential housing; and mandatory vs discretionary LAT liquidation rules.
resource-tax
PRC Resource Tax Law; taxable mineral products and salt; ad valorem vs specific quantity taxation methods; sales revenue determination (exclusion of separately stated freight, loading/unloading, and insurance); raw ore vs concentrate conversion ratios (折算率); statutory tax relief for low-grade ores and deep-well extraction; and water resource tax reform pilot regulations.
environmental-protection-tax
PRC Environmental Protection Tax Law; taxable pollutants (air pollutants, water pollutants, solid waste, industrial noise); tax base and pollution equivalent (污染当量数) calculations; ranking and taxing rules (top 3 air pollutants, top 5 Category 1 water pollutants, top 3 other water pollutants); solid waste tonnage tax; industrial noise excess decibels tiered tax rates; and statutory tax reductions for emissions below national standards (25% reduction for 30% below standard, 50% reduction for 50% below standard).
vehicle-purchase-tax-tariffs
Vehicle Purchase Tax Law: taxpayers, taxable vehicles, flat 10% tax rate, tax base for domestic purchase (tax-exclusive price) and self-imported vehicles ([Dutiable Value + Tariff] / [1 - CT Rate] × 10%), statutory exemptions; Customs Tariffs: Dutiable Value (完税价格 / CIF) for imports, inclusion of royalties/assists/commissions (excluding buying commissions), exclusions of post-import charges, export Dutiable Value (FOB / [1 + Export Duty Rate]), tariff rate categories, and tariff reduction/relief.
How to Pass the Tax Law I Exam
What You Need to Know
- Passing score: 84 out of 140 points (60% passing benchmark)
- Assessment: National computer-based examination (无纸化机考) administered in a single 150-minute testing session. Total score is 140 points across 80 objective test items.
- Time limit: 150 minutes (2.5 hours)
- Exam fee: ¥93 RMB
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
Tax Law I Study Tips from Top Performers
Frequently Asked Questions
What is the China Certified Tax Adviser (CTA) Tax Law I examination?
The Certified Tax Adviser (CTA) Tax Law I paper (全国税务师职业资格考试·税法一) is the official national professional qualification examination administered by the China Certified Tax Agents Association (CCTAA) under the supervision of the State Taxation Administration (STA). It focuses on PRC indirect taxes, property transfer taxes, resource taxes, and environmental levies, including Value-Added Tax (VAT), Consumption Tax, Land Appreciation Tax (LAT), Urban Maintenance & Construction Tax, Resource Tax, Environmental Protection Tax, Vehicle Purchase Tax, and Customs Tariffs.
What is the scoring standard, passing threshold, and score validity period?
The examination is scored out of 140 points, with a fixed national passing benchmark of 60% (84 points). Subject scores roll over a 5-year consecutive cycle (5年为一个周期的成绩滚动管理办法). To obtain the CTA professional certificate, a candidate must pass all 5 subjects (Tax Law I, Tax Law II, Related Laws for Tax, Financial & Accounting, and Tax Practice) within 5 consecutive examination years.
How is the Tax Law I paper structured during the official exam?
The official exam is a 150-minute computer-based test consisting of 80 objective questions totaling 140 marks: 40 Single Choice Questions (60 marks), 20 Multiple Choice Questions (40 marks), 2 Calculation Analysis case sets (8 questions, 16 marks), and 2 Comprehensive Case Analysis sets (12 questions, 24 marks).
Why is this question bank presented in English?
While the official exam in mainland China is conducted in Chinese, this 100-question practice bank is an English-language study adaptation developed for bilingual tax advisers, international corporate tax controllers, cross-border M&A tax specialists, and candidates preparing for Chinese tax credentials. It rigorously maintains Chinese tax statutory articles, administrative regulations, and authentic Chinese terminology.
What core tax calculations are most heavily emphasized on Tax Law I?
Tax Law I heavily weights quantitative problem-solving: (1) VAT output/input tax, agricultural product deemed deductions, input tax transfer out, additional deductions (加计抵减), retained VAT refunds (留抵退税), and export 'Exemption, Credit, Refund' (免、抵、退); (2) Consumption Tax compound rates on white spirits/cigarettes, consignment processing deemed base, and outsourced tax deductions; (3) Land Appreciation Tax (LAT) 4-tier progressive calculations, developer deductible expense limits (5%/10%), and 20% additional deduction; and (4) Environmental Protection Tax pollution equivalents.