中华人民共和国营业税暂行条例

Provisional 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 (h
ereinafter referred to as "taxable services'), the
transfer of intangible assets or the sale of immov
able properties within the territory of the People
's Republic of China shall be taxpayers of Busines
s Tax (hereinafter referred to be `taxpayers'), an
d shall pay Business Tax in accordance with these
Regulations.

Article 2
The taxable items and tax rates of Business Tax sh
all be determined in accordance with the < Busines
s Tax Taxable Items and Tax Rates Table > attached
to these Regulations.

Any adjustments to the taxable items and tax rates
shall be determined by the State Council.

The specific tax rates applicable to taxpayers eng
aged in entertainment businesses shall be determin
ed by the People's governments of the provinces, a
utonomous regions and municipalities directly unde
r the central government within the range prescrib
ed by these Regulations.

Article 3
For taxpayers engaged in taxable activities under
different tax items , teh turnover, transfer and s
ales amounts (hereinafter referred to as `turnover
') under different taxable items shall be accounte
d for separately, If the turnover has not been acc
ounted for separately, the higher tax rate shall a
pply.

Article 4
For taxpayers providing taxable services, transfer
ring intangible assets on selling immovable proper
ties, the tax payable shall be computed according
to the turnover and the prescribed tax rates.
The formula for computing the tax payable is as fo
llows:

Tax payable = Turnover * Tax rate

The tax payable shall be computed in Renminbi, The
turnover of the taxpayer settled in foreign curre
ncies shall be converted into Renminbi according t
o the exchange rate prevailing in the foreign exch
ange market.

Article 5
The turnover of the taxpayers shall be the total c
onsideration and all other changes receivable from
the buyers for the provision of taxable services,
transfer of intangible assets or sales of immovabl
e properties by the taxpayers, except for followin
g situations:

(1) For transportation enterprises which carry pas
sengers or cargoes from the territory of the Peopl
e's Republic of China to over seas locations and t
rans-ship passengers or cargoes to other transport
ation enterprises overseas, the turnover shall be
the balance of transport charges for the whole jou
rney less the transport charges paid to the sub-co
ntracted transportation emerprises.

(2)For travel enterprises which organize tourist g
roups to travel outside the territory of the Peopl
e's Republic of China and sub-contract to other tr
avel enterprises overseas, the turnover shall be t
he balance of the tourist charges for the whole jo
urney less the payments made to those sub-contract
ed travel enterprises.

(3) For the main contractors in the construction b
usiness who sub-contract work to others, the turno
ver shall be the balance of the total contract sum
less the payments made to the sub-contractors.

(4)For re-lending businesses, the turnover shall b
e the balance of interest on lending less the inte
rest on borrowing.

(5)For businesses buying and selling foreign curre
ncies, marketable securities and futures, the turn
over shall be the balance of the selling prices le
ss the buying prices.

(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, kinderg
artens, homes for the aged, welfare institutions f
or the handicapped, matchmaking and funeral servic
es.

(2)Services provided on individual basis by the di
sabled .

(3)Medical services provided by hospitals, clinics
and other medical institutions.

(4)Educational services provided by schools and ot
her educational institutions; and services provide
d by students participating in work-study programs

(5)Agricultural mechanical ploughing , irrigation
and drainage, prevention and treatment of plant di
seases and insect pests, plant protection, insuran
ce for farming and animal husbandry, and related t
echnical training services; breeding and the preve
ntion and treatment of diseases of poultry, livest
ock and aquatic animals.

(6)Admission fees for cultural activities conducte
d by memorial hall, museum, cultural centre, artga
llery, exhibition hall, academy of painting and ca
lligraphy, library and cultrual protective units;
admission fees for cultural and religious activiti
es conducted at places of religious worship.

Except as stipu;ated in the above paragraphs, the
Business Tax exemption and reduction items shall b
e regulated by the State Council. Local government
s or departments shall not regulate any tax exempt
ion or reduction items.

Article 7
For taxpayers engaged in tax exempt in tax exempt
or tax reduced items, the turnover shall be accoun
ted for separately. if the turnover has not been s
eparately accounted for, no exemption of reduction
is allowed.

Article 8
For taxpayers whose turnover has not reached the B
usiness Tax minmum threshold stipulated by the Min
istry of Finance of Finance, the Business Tax shal
l be exempt.

Article 9
The time at which a liability to Business Tax aris
es shall be the date on which the business proceed
s are received or documented evidence of right to
collcet business proceeds is obtained by the taxpa
yer.

Article 10
Business Tax shall be collected by the tax authori
ties.

Article 11
Business Tax withholding agents are as follows:

(1) For financial institutions entrusted ro grant
loans, the entrusted financial institutions shall
be the withholding agents.

(2)For sub-contracting of construction and install
ation business, 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 fo
llows:

(1) Taxpayers providing taxable services shall rep
ort and pay tax to the local competent tax authori
ties where the taxable services take place, Taxpay
ers engaged in the transportation business shall r
eport and pay tax to the local competent tax autho
rities where the business establishment is located
.

(2) Taxpayers transferring land use rights shall r
eport and pay tax to the local competent tax autho
rities where the land is located. Taxpayers transf
erring other intangible assets shall report and pa
y tax to the local comptent tax authorities where
the establishment is located.

(3)Taxpayers selling immovable properties shall re
port and pay tax to the local competent tax author
ities where the immovable properties are located.

Article 13
The Business Tax assessable period shall be five d
ays , ten days, fifteen days or one month, The act
ual assessable period of taxpayers shall be determ
ined by the competent tax authorities according to
the magnitude of teh tax payable of the taxpayers;
tax that cannot be assessed in regular periods may
be assessed on a transaction-by-transaction basi
s.

Taxpayers that adopt one month as an assessable pe
riod shall report and pay tax within ten days is f
ollowing the end of the period. If an assessable p
eriod of five days, ten days or fifteen days is ad
opted, the tax shall be prepaid within five days f
ollowing the end of the period and a monthly tax r
eturn shall be filed with any balance of tax due s
ettled within ten days from the first day of the f
ollowing month.

The tax payment deadlines for withholding agents s
hall be determined with refernce to the stipulatio
ns of the above two paragraphs.

Article 14
The collection and administration of Business Tax
shall be conducted in acoordance with the relevant
regulations of the < Law of the People's Republic
of China on Tax Collection and Administration> an
d these Regulations.

Article 15
The collection of Business Tax from foreign invest
ment enterprises and foreign enterprises shall be
conducted in accordance with the resolutions of th
e Standing Committee of the National People's Cong
ress.

Article 16
The Ministry of Finance shall be responsible for t
he interpretation of these Regulations and for the
formulation of the Detailed Rules and Regulations
for the Implementation of these Regulations.

Article 17
These Regulations shall come into effect from Janu
ary 1, 1994. The < Draft Regulations of the People
's Republic of China on Business Tax > promulgated
by the State Council on September 18, 1984 shall
be repealed on the same date.

BUSINESS TAX TAXABLE ITEMS AND TAX RATES TABLE

Taxable items Scope of charag Tax Rate
1.Communications Transportation by 3%
and transportation land, water, air and
pipelins, loading?
unloading and delivery
2.Construction Construction, installa 3%
rion,repair, decoration
and other engineering work
3.Finance and in 5%
surance
4.Posts and tele 3%
comcommunications
5.Culture and Sports 3%
6.Entertainment Singing bars, dance hall 5%-20%
s, karaoke lounges, commercial
music halls, musical tea houses
, billiards, golf, bowling and
amusement facilities
7.Servicing Agency, hotel, caterring, 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 immova Sale of buildings and oth 5%
ble properties er attachments to land