(State Council: 13 December 1993) Whole Doc.Article 1 All units and individuals engaged in the provision of services asprescribed in these Regulations (hereinafter referred The taxable items and tax rates of Business Tax shall be determinedin accordance with the Any adjustments to the taxable items and tax rates shall bedetermined by the State Council. The specific tax rates applicable to taxpayers engaged inentertainment businesses shall be determined by the People’s For taxpayers engaged in taxable activities under different taxitems, the turnover, transfer and sales amounts (hereinafter For taxpayers providing taxable services, transferring intangibleassets on selling immovable properties, the tax payable Tax payable = Turnover x Tax rate The tax payable shall be computed in Renminbi, The turnover of thetaxpayer settled in foreign currencies shall be converted The turnover of the taxpayers shall be the total consideration andall other changes receivable from the payers for the provision (1) For transportation enterprises which carry passengers or cargoesfrom the territory of the People’s Republic of China (2) For travel enterprises which organize tourist groups to traveloutside the territory of the People’s Republic of China (3) For the main contractors in the construction business whosub-contract work to others, the turnover shall be the (4) For re-lending businesses, the turnover shall be the balance ofinterest on lending less the interest on borrowing. (5) For businesses buying and selling foreign currencies, marketablesecurities and futures, the turnover shall be the balance (6) Other situations as regulated by the Ministry of Finance.Article 6 The following items shall be exempt from Business Tax: (1) Nursing services provided by nurseries, kindergartens, homes forthe aged, welfare institutions for the handicapped, (2) Services provided on individual basis by the disabled. (3) Medical services provided by hospitals, clinics and other medicalinstitutions. (4) Educational services provided by schools and other educationalinstitutions; and services provided by students (5) Agricultural mechanical ploughing, irrigation and drainage,prevention and treatment of plant diseases and insect (6) Admission fees for cultural activities conducted by memorialhall, museum, cultural centre, art gallery, exhibition Except as stipulated in the above paragraphs, the Business Taxexemption and reduction items shall be regulated by the For taxpayers engaged in tax exempt or tax reduced items, theturnover shall be accounted for separately. if the turnover For taxpayers whose turnover has not reached the Business Tax minimumthreshold stipulated by the Ministry of Finance, the Business The time at which a liability to Business Tax arises shall be thedate on which the business proceeds are received or documented Business Tax shall be collected by the tax authorities.Article 11 Business Tax withholding agents are as follows: (1) For financial institutions entrusted to grant loans, theentrusted financial institutions shall be the withholding (2) For sub-contracting of construction and installation business,the main contractors shall be the withholding agents. (3) Other withholding agents as stipulated by the Ministry ofFinance.Article 12 The place for the payment of Business Tax is as follows: (1) Taxpayers providing taxable services shall report and pay tax tothe local competent tax authorities where the taxable services (2) Taxpayers transferring land use rights shall report and pay taxto the local competent tax authorities where the (3) Taxpayers selling immovable properties shall report and pay taxto the local competent tax authorities where the immovable The Business Tax assessable period shall be five days, ten days,fifteen days or one month. The actual assessable period Taxpayers that adopt one month as an assessable period shall reportand pay tax within ten days following the end of the The tax payment deadlines for withholding agents shall be determinedwith reference to the stipulations of the above two paragraphs.Article The collection and administration of Business Tax shall be conductedin accordance with the relevant regulations of the The collection of Business Tax from foreign investment enterprisesand foreign enterprises shall be conducted in accordance The Ministry of Finance shall be responsible for the interpretationof these Regulations and for the formulation of the Detailed These Regulations shall come into effect from January 1, 1994, The BUSINESS TAX TAXABLE ITEMS AND TAX RATES TABLE ———————————————————————– Taxable items Scope of charge Tax Rate % ———————————————————————– 1. Communications and transportation Transportation by land, water, 3 air and pipeline, loading unloading and delivery 2. Construction Construction, installation, repair, decoration and other engineering work 3 3. Finance and insurance 5 4. Posts and telecommunications 3 5. Culture and sports 3 6. Entertainment Singing bars, dance halls, 5-20 karaoke lounges, commercial music halls, musical tea houses, billiards, golf, bowling and amusement facilities 7. Servicing Agency, hotel, catering, 5 tourism, warehousing, leasing, advertising and other services 8. Transfer of intangible assets Transfer of land-use rights, 5 patent rights, unpatchted technologies, trade marks, copyrights and goodwill 9. Sale of immovable properties Sale of buildings and other 5 attachments to land ———————————————————————–
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