中华人民共和国营业税暂行条例实施细则

Detailed Rules and Regulations for the Implementation of the Provisional Regulations
of the People's Republic of China on Business Tax


Article 1
These Detailed Rules are formulated in accordance
with the stipulations of Article 16 of < Provision
al Regulations of the People's Republic of China o
n Business Tax > (hereinafter referred to as the `
Regulations').

Article 2
"Taxable services" as mentioned in Article of the
Article 1 of the Regulations refers to services wi
thin the scope of taxable items in the communicati
ons and transportation, construction, finance and
insurance, posts and telecommunications, culture a
nd sports, entertainment and service industries.

Processing, repair and replacement are not taxable
swevices as mentioned in the Regulations (hereina
fter referred to as `non-taxable services').

Article 3
"The foreign exchange, marketable securities and f
utures buying and selling business" as mentioned i
n Item 5 of Article 5 of the Regulations refers to
the foreign exchange, marketable securities and f
utures buying and selling business carried on by f
inancial institutions (including babks and non-ban
k financial institutions). The buying and selling
of foreign exchange, marketable securities or futu
res by non-financial institutions or individuals s
hall not be subject to Business Tax.

"Futures" as mentioned in Item 5 of Article 5 of t
he Regulations refer to non-commodities futures.
Futures on commodities shall not be subject to Bus
iness Tax.

Article 4
"Provision of taxable services, transfer of intang
ible assets or the sale of immovable properties" a
s mentioned in Article 1 of the Regulations refers
to activities of providing taxable services, tran
sferring intangible assets or ownership of immovab
le properties with consideration (hereinafter refe
rred to as the `taxable activities'). However, tax
able services provided by the staff employed by un
its or individual operators to their own units or
employers shall not be included therein.

The term "with consideration" in the preceding par
agraph includes receipt of currency , goods and ot
her economic benefits.

For units or individuals that sell their newly sel
f-constructed buildings (hereinafter referred to a
s `self-construction'), their self-construction ac
tivities shall be regarded as provision of taxable
services.

Transfers of limited property rights, or permanent
rights, to use immouable properties, and transfer
s by units of immouable properties by way of gifts
to others shall be regarded as sales of immovable
properties.

Article 5
A sales activity that involves both taxable servic
es and goods is deemed to be a mixed sales activit
y Mixed sales activities of enterprises, enterpris
e units or individual business operators engaged i
n production, wholesale or retail of goods shall b
e classified as sales of goods, and Business Tax s
hall not be levied on the sales; mixed sales activ
ities of other units and individuals shall be clas
sified as provision of taxable services, and Busin
ess Tax shall be levied on the sales.

Whether taxpayers' sales activities are mixed sale
s activities shall be determined by the collection
authorities under the State Administration of Tax
ation.

"Goods" as mentioned jin Paragraph 1 refers to tan
gible moveable goods, including electricity, heat
and gas.

"Enterprises, enterprise units or individual busin
ess operators engaged in the production, wholesale
and retail of goods" as mentioned in Paragraph 1
include enterprises, units with an enterprise natu
re and individual business operators engaged princ
ipally in the production, wholesale and retail of
goods, and also engaged in taxable services.

Article 6
For taxpayers engaged in both taxable services and
the sales of goods or non-taxable services, the s
ales amount of taxable services and the sales amou
nt of goods or non-taxable services shall be accou
nted for separately. For taxpayers that have not a
ccounted for separately or cannot account for accu
rately, the taxable services and goods and non-tax
able services shall together be subject ot Value A
dded Tax , and Business Tax shall not be levied.

Whether the taxable services engaged concurrently
by taxpayers are together subject to Value Added T
ax, this tax shall be determined by the collection
authorities under the State Administration of Tax
ation.

Article 7
Except as otherwise stipulated in Article 8 of the
se Detailed Rules, any one of the following activi
ties shall be regarded as provision of taxable ser
vices, transfer of intangible assets or sale jof i
mmovable properties within the territory of the Pe
ople's Republic of China (hereinafter referred to
as `within the territory') as mentioned in Article
1 of the Regulations:

(1)Provision of services occurs within the territo
ry;

(2)Transportation from within the territory of pas
sengers or cargos to outside the territory;

(3)Organization of tourist groups within the terri
tory to travel outside the territory;

(4)Transfer of intangible assets to be used within
the territory;

(5)Sales of immovable properties located within th
e teritory.

Article 8
Any one of following situations shall be providing
insurance services within the territory:

(1)Insurance services provided by insurance organi
zations within the territory, except for insurance
provided for export goods by insurance organizati
ons within the territory.

(2)Insurance services provided by insurance organi
zations outside the territory jin relation to good
s within the territory.

Article 9
"Units" as mentioned in Article 1 of the Regulatio
ns refers to State-owned enterprises, collectively
-owned enterprises, private enterprises, joint sto
ck enterprises, other enterprises and administrati
ve units, institutions, military units, social gro
ups and other units.

"Individuals" as mentioned in Article 1 of the Reg
ulations refers to individual industrial or commer
cial households and other individuals that have bu
siness activities.

Article 10
For enterprises which lease or contract to other t
o operate, the lessees or sub-contractors shall be
the taxpayer.

Article 11
Except otherwise stipulated in Article 12 of these
Detailed Rules, units that are liable to Business
Tax shall be those that have taxable activities a
nd receive money, goods or other economic benefits
from the other parties. They shall include units
both with and without independent accounting .

Article 12
The taxpayer for the business of central railway t
ransportation shall be the Ministry of Railways. T
he taxpayers for the business of Sino-foreign equi
ty joint venture railway transportation shall be t
he joint venture railway companies, The taxpayers
for the business of local railway transportation s
hall be the local organization for railway adminis
tration. The taxpayers for the business of provisi
onal administration for infrastructural route tran
sportation shall be the organization for provision
al administration for infrastructural routes.

Units engaged in the business of waterway, air, pi
peline and other land transportation liable to Bus
iness Tax shall be those units engaged in transpor
tation business and accountable for profit or loss


Article 13
Charges of legislative, judicial and administrativ
e authorities that meet the following conditions s
hall not be subject to Business Tax;

(1)Charges which are permitted under official docu
ments by the Satae Council, provincial People's go
vernments, or the finance or pricing departments t
hereunder, and where the charging standard is in a
ccordance with the stipulations of the documents.

(2)Charges which are collected directly by the leg
islative, judicial and administrative authorities
themselves.

Article 14
"Other charges" as mentioned in Article 5 of the R
egulations shall include handling fees, funds, fun
d raising fees, receipts on behalf, payment on beh
alf and other charges of every nature received fro
m other perties.

All other charges shall be included in the turnove
r in computing the tax payable regardless of the t
reatments applicable according to the stipulations
of the accounting policies.

Article 15
Where the prices of the taxpayers providing taxabl
e services, transferring intangible assets or sell
ing immovable properties are obviously low and wit
hout proper justification, the competent tax autho
rities shall have the right to determine the turno
ver according to the following esquence:

(1)Determined according to the average prices of s
imilar services provided or similar immovable prop
erties sold by the taxpayers in the same month.

(2)Determined according to the average prices of s
imilar services provided or similar immovable prop
erties sold by the taxpayers in the most recent pe
riod.

(3)Determined acording to the following formula:

(1 + the cost plus ma
Assessable Operating -rhin rate)
value = costs or * ??????????
project costs (1 - Business Tax rate)

The cost-plus margin rate in the above formula sha
ll be determined by the tax authorities under the
People's governments of the provinces, autonomous
regions and municipalities.

Article 16
In accordance with the stipulations of Article 4 o
f the Regulations, taxpayers settling the turnover
on foreign currencies can select to convert the t
urnover into Regulations, taxpayers settling the t
urnover in foreign currencies can select to conver
t the turnover into Renminbi according to the exch
ange rate quoted by the State of either the date t
he turnover occurs or on the first date of the mon
th (the average rate in principle). However, the R
enminbi conversion rate for the turnover of financ
ial and insurance enterprises shall be the exchang
e rate ascertained in the prior year's financial s
tatements.

Taxpayers shall decide in advance the conversion r
ate selected, Once selected, it cannot be changed
within one year.

Article 17
Turnover of transportation enterprises engaged in
through transport business shall be the turnover a
ctually received.

"Other situations" as mentioned in Item 6 of Artic
le 5 of the Regulations include tourist enterprise
s organising tourist groups to travek within the t
erritory of China . The turnover shall be the bala
nce of tourist fees received after deduction of ro
om charges, meal charges, meal charges, transporta
tion, admission fees and other charges paid to oth
er units on behalf of the tourists.

Article 18
For taxpayers engaged in construction, repair and
decoration project operations, their turnover shal
l include the prices of raw mathrials, other mater
ials and energy used in the projects irrespective
of the method in which the accounts are settled wi
th the other parties.

For taxpayers engaged in installation project oper
ations, as far as the price of the equipment insta
lled is taken as part of installation project sum,
their turnover shall include the price of the equ
ipment.

Article 19
The turnover of self-construction activities as me
ntioned in Article 4 of these Detailed Rules shall
be determined with reference to the stipulations
of Article 15 of these Detailed Rules.

Article 20
"Re-lending business" as mentioned in Item(4) of A
rticle 5 of the Regulations refers to the business
of lending to others the funds borrowed. Lending
to others with the funds from deposits taken from
units or individuals and the funds from lender's o
wn capital contributions shall not be regarded as
relending business.

Article 21
For insurance business that reinsures with other p
arties, the turnover of the initial insurance busi
ness shall be the total insurance premiums after d
eduction of the premiums paid to the reinsurers.

Article 22
For entertainment performances by units or individ
uals , the turnover shall be total box-office proc
eeds or block-booking proceeds after deduction of
the payments to units providing performance venues
, entertainment companies and managers.

Article 23
Turnover of the entertainment business shall be th
e various charges collected from customers in the
entertainment business operations, including box-o
ffice receipts, on-stage fees, song dedication fee
s, charges on cigarettes and drinks, and other cha
rges in the entertainment business operations.

Article 24
For travel business, the turnover shall be the bal
ance of total charges after deduction of payments
to other units for meals, lodging and transportati
on for the tourists.

For travel enterprises that organis tours within t
he territory and then hand over the groups to othe
r travel enterprises, the trunover shall be determ
ined with reference to the stipulations of Item 2
of Article 5 of the Regulations.

Article 25
For units giving immovable properties to others as
free gift, the turnover shall be determined with
reference to the stipulations of Article 15 of the
se Detailed Rules.

Article 26
The scope of the tax-exempt items as stipulated ji
n Article 6 of the Regulations shall be defined as
follows:

(1)"Personal services provided on individual basis
by the disabled" as mentioned in Paragraph 1, Ite
m 2 refers to services provided to the Public by t
he disabled individual.

(2)"Medical services provided by hospitals, clinic
s and other medical institutions" as mentioned in
Paragraph 1, Item 3 refers to such services as dia
gnosis and treatment to patients, epidemic prevent
ion, child delivery and family planning, as well
as the business jof providing medicine, medical ap
paratus, hospital lodging and meals in relation to
these services.

(3)"Schools and other educational institutions" as
mentioned in Paragraph 1, Item 4 refers to ordina
ry schools and schools of various kinds approved t
o be established by the People's govermments above
the prefecture and city levels or departments for
educational administration under govermments of t
he same level and where the academic qualification
s of their students are recognized by the State.

(4)"Agricultural mechanical ploughing" as mentione
d in Paragraph 1, Item 5 refers to the business of
farming operations applying agricultural machiner
y in farming, forestry and husbandry (including pl
oughing, planting, harvesting, threshing and plant
protection).

"Irrigation and drainage" refers to the business o
f irrigation and drainage of farmland.

"Prevention and treatment of diseases and insect p
ests" refers to the business jof forecast, prevent
ion and treatment of diseases and insect pests for
farming, forestry, husbandry and fishery.

"Imsurance for farming and husbandry" refers to th
e business of providing insurance to animals and p
lants grown and raised in planting, breeding and h
usbandry.

"Related technical training " refers to technical
training services related to the business jof agri
cultural mechanical ploughing, irrigation and drai
nage, prevention and treatment of diseases and ins
ect pests, and plant protection, as well as servic
es to enable the farmers to obtain knowledge of in
surance for farming and husbandry.

The scope of the tax exemption for the breeding an
d the prevention and treatment of diseases of poul
try, livestock and aquatic animals includes the bu
siness of providing medicine and medical apparatus
in relation to those services.

(5)"Cultural activities conducted by memorial hall
, museum, cultural cintre, art gallery, exhibition
hall, academy of painting and calligraphy, librar
y and cultural protective units" as mentioned in P
-aragraph 1, Item 6 refers to cultural activities
that fall within the taxable scope of taxable item
s under culture and sports activities conducted by
those units in their own locations. The admission
fees refers to the box-office receipts on the sal
es at the first entrance.

"Admission fees for cultural and religious activit
ies conducted at places of religious worship" refe
rs to cultural and religious activities held by te
mples, Taoist temples, mosques and churches.

Article 27
The application of the Business Tax minimum thresh
old as mentioned jin Article 8 of the Regulations
shall be limited to individuals.

Ranges for the Business Tax minimum threshold are
as follows:

For those assessable on a period basis, the Busine
ss Tax minimum threshold shall be a monthly turnov
er of 200-800 yuan.

For those assessable on a transaction basis, the B
usiness Tax minimum threshold shall be turnover of
50 yuan per transaction (or per day).

Taxpayers whose turnovers reach the minimum thresh
old shall compute the tax payable based on the to
tal turnover.

The tax authorities under the People's governments
of provinces, autonomous regions and municipaliti
es shall determine the minimum threshold locally a
pplicable within the prescribed ranges and in acco
rdance with the actual conditions, and shall repor
t the amounts to the State Administration of Taxat
ion for their records.

Article 28
For taxpayers transferring land use rights or sell
ing immovable properties that accept receipts in a
dvance, the timing at which the tax liability aris
es shall be the date on which the advance receipts
are received.

For taxpayers that have self-construction activiti
es as mentioned in Article 4 of these Detailed Rul
es, the timing at which the tax liability arises o
n the self-construction activities shall be the da
te on which the self-constructed buildings are sol
d and the turnovers are received of the documented
evidence of the right to collect the sales sum is
obtained.

For taxpayer giving immovable properties to others
as free gift, the timing at which the tax liabili
ty arises shall be the date on which the titles of
the immovable properties are transferred.

Article 29
Other withholding agents as mentioned in Article 1
1 of the Regulations are defined as follows:

(1)For overseas units or individuals that have tax
able activities within the territory but have not
set up any establishment within the territory, the
agents shall be the withholding agents for their
tax payable. If there are no agents, the transfere
es and the purchasers shall be the withholding age
nts.

(2)For units or individuals that present performan
ces where the tickers are sold by others , the tic
ket sellers shall be the withholding agents for th
eir tax payable.

(3)For individual performance managers, the ticket
sellers shall be the withholding agents on their t
ax payable on the performance management business.

(4)For reinsurance business, the initial insurers
shall be the withholding agents.

(5)For individuals transferring other intangible a
ssets as mentioned in Item 2, Article 12 o fthe Re
gulations, the transferees shall be the withholdin
g agents for their tax payable.

Article 30
For taxpayers providing taxable services that take
place in a different county (or city) that should
report and pay with the competent tax authorities
where the services taken place but have not report
ed or paid the tax, the competent tax authorities
where the establishments are located or where the
individuals reside shall collect the overdue tax.

Article 31
Taxpayers with contracted projects extending acros
s provinces, autonomous regions and municipalities
shall report and pay tax to the competent tax aut
horities where the establishments are located.

Article 32
For taxpayers that have taxable activities within
the area of their own province, autonomous region
and municipality, and need to change the tax payme
nt location, the location shall be determined by t
ax authorities under the People's governments of t
he province, autonomous region or municipality.

Article 33
The assessable period for the financial industry (
excluding pawn-broking ) shall be one quarter of a
year.

The assessable period for the insurance industry s
hall be one month.

Article 34
The terms "above " and "below" as mentioned in the
se Detailed Rules also include the figure or level
itself.

Article 35
These Detailed Rules shall be interpreted by the M
inistry of Finance or by the State Administration
of Taxation.

Article 36
These Detailed Rules shall be implemented on the s
ame day the Regulations are come into effect, The
< Detailed Rules and Regulations for the Implement
ation of the Draft Regulations of the People's Rep
ublic of China on Business Tax> promulgated on Sep
tember 28, 1984 shall be repealed on the same date