(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% |
| 7. 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 กม 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.
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