The State Council Decree of the State Council No.136 Interim Regulations of the People’s Republic of China on Business Tax adopted by the 12th Executive Meeting of the State Council on Premier of the State Council, Li Peng December 13,1993 Interim Regulations of the People’s Republic of China on Business Tax Article 1 All units and individuals engaged in the provision of services as prescribed in these Regulations (hereinafter referred to as “taxable Article 2 The taxable items and tax rates of Business Tax shall be determined in accordance with the Table of Taxable Items and Tax Rates of Any adjustments to the taxable items and tax rates shall be determined by the State Council. The specific tax rates applicable to taxpayers engaged in entertainment businesses shall be determined by the people’s governments Article 3 For taxpayers engaged in taxable activities under different tax items, the turnover, transfer and sales amounts (hereinafter referred Article 4 For taxpayers providing taxable services, transferring intangible assets or selling immovable properties, the tax payable shall be tax payable = turnover * rates The tax payable shall be computed in Renminbi. The turnover of the taxpayer settled in foreign currencies shall be converted into Article 5 The turnover of the taxpayers shall be the total consideration and all other charges receivable from the buyers for the provision (1) For transportation enterprises which carry passengers or cargoes from the territory of the People’s Republic of China to overseas (2) For travel enterprises which organize tourist groups to travel outside the territory of the People’s Republic of China and sub-contract (3) For the main contractors in the construction business who sub-contract work to others, the turnover shall be the balance of the total (4) For re-lending businesses, the turnover shall be the balance of interest on lending less the interest on borrowing. (5) For businesses buying and selling foreign currencies, marketable securities and futures, the turnover shall be the balance of the (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, and homes for the aged, welfare institutions for the handicapped, matchmaking (2) Services provided on an individual basis by the disabled. (3) Medical services provided by hospitals, clinics and other medical institutions. (4) Educational services provided by schools and other educational institutions; and services provided by students participating in work-study (5) Agricultural mechanical ploughing, irrigation and drainage, prevention and treatment of plant diseases and insect pests, plant protection, (6) Admission fees for cultural activities conducted by memorial halls, museums, cultural centres, art galleries, exhibition halls, academies Except as stipulated in the above paragraphs, the Business Tax exemption and reduction items shall be regulated by the State Council. Article 7 For taxpayers engaged in tax-exempt or tax-reduced items, the turnover shall be accounted for separately; if the turnover has not Article 8 For taxpayers whose turnover has not reached the Business Tax minimum threshold stipulated by the Ministry of Finance, the Business Article 9 The time at which a liability to Business Tax arises shall be the date on which the business proceeds are received or documented evidence Article 10 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, the entrusted financial institutions shall be the withholding agents. (2) For sub-contractors of construction and installation businesses, the main contractors shall be the withholding agents. (3) Other withholding agents as stipulated by the Ministry of Finance. Article 12 The place for the payment of Business Tax is as follows: (1) Taxpayers providing taxable services shall report and pay the tax to the local competent tax authorities where the taxable services (2) Taxpayers transferring land use rights shall report and pay tax to the local competent tax authorities where the land is located. (3) Taxpayers selling immovable properties shall report and pay tax to the local competent tax authorities where the immovable properties Article 13 The Business Tax assessable period shall be five days, ten days, fifteen days or one month. The actual assessable period of taxpayers Taxpayers that adopt one month as an assessable period shall report and pay tax within ten days following the end of the period. If The tax payment deadlines for withholding agents shall be determined with reference to the stipulations of the above two paragraphs. Article 14 The collection and administration of Business Tax shall be conducted in accordance with the relevant provisions of the Law of the Article 15 The collection of Business Tax from enterprises with foreign investment and foreign enterprises shall be conducted in accordance with Article 16 The Ministry of Finance shall be responsible for the interpretation of these Regulations and for the formulation of the rules for Article 17 These Regulations shall enter into force on January 1, 1994. The Regulations of the People’s Republic of China on Business Tax (Draft) Attachment: Business Tax Taxable Items and Tax Rates Table htm/e02806.htm
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