CHINA TAXATION SYSTEM
Business Tax
(1) Taxpayers
Taxpayers of Business Tax include all enterprises, units,
household businesses and other individuals engaged in provision
of taxable services, transfer of intangible assets or in sales
of immovable properties within the territory of the People's
Republic of China.
(2) Taxable items and tax rates
Table of Business Tax Taxable Items and Rates
| Taxable items |
Tax rates |
| 1. communications and transportation |
3% |
| 2. construction |
3% |
| 3. financial and insurance businesses |
8% |
| 4. post and tele-communication |
3% |
| 5. culture and sports |
3% |
| 6. entertainment |
5%-20% |
| services |
5% |
| 8. transfer of intangible assets |
5% |
| 9. sales of immovable properties |
5% |
(3) Computation of tax payable
The amount of Business Tax payable is equal to the turnover
times the applicable tax rate. The computing formula is:
Tax payable = Turnover × Applicable tax rate
(4) Major exemptions
Business Tax may be exempt for: nursing services provided
by nurseries, kindergartens, old people's homes, welfare institutions
for the handicapped, matchmaking and funeral services; services
provided individually by the disabled to the public; medical
services provided by hospitals, clinics and other medical
institutions; educational services provided by schools and
other educational institutions, and services provided by students
in part-time work; agricultural mechanical ploughing, irrigation
and drainage, prevention and treatment of plant diseases and
insect pests, plant protection, insurance for farming and
animal husbandry, and related technical training services,
breeding and the prevention and treatment of diseases of poultry,
livestock and aquatic animals; admission fees for cultural
activities conducted by memorial hall, museum, cultural centre,
art gallery, exhibition hall, academy of painting and calligraphy,
library and cultural protective units, admission fees for
cultural and religious activities taking place at religious
premises.
|
