Business tax is a kind of turnover tax imposed on corporations and persons engaged in the provision of services (hereinafter referred to as "taxable services"), the transfer of intangible assets or the sale of immovable properties within the territory of the People's Republic of China.
Scope of Charge
Basis of Assessment
Business tax is assessed on the basis of turnover; that is, all money received from the provision of taxable services, the transfer of intangible assets or the sale of immovable properties
Applicable are different proportional tax rates subject to different industries as follows:
Computation of Tax Payable
Tax Payable = Turnover × Tax Rate
- Enterprises with foreign investment and their research and development centres, foreign enterprises and foreign nationals engaged in the transfer of technology, development of technology and its related technical consultancy, and technical services are exempt from business tax on their income
- Qualified Foreign Institutional Investors (QFII), which entrust corporations within China to deal with securities, are exempt from business tax on their difference gains from securities trading
- Services provided by nurseries and other welfare institutions, medical services provided by medical establishments, educational services provided by schools and agricultural technical training services are exempt from business tax
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