Interim Regulations of the People's Republic of China on Business Tax

Interim Regulations of the People's Republic of China on Business Tax


Interim Regulations of the People's Republic of China on Business Tax

Order of the State Council [1993] No. 136

December 13, 1993
 
Article 1 All units and individuals engaged in the provision of services as prescribed in these Regulations (hereinafter referred to as the "taxable services"), transfer of intangible assets or sales of immovable properties within the territory of the People's Republic of China shall be taxpayers of business tax (hereinafter referred to be "taxpayers"), and shall pay business tax in accordance with these Regulations.

 
Article 2 The taxable items and tax rates of business tax shall be determined in accordance with the Business Tax Taxable Items and Tax Rates Table appended 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 engaged in the entertainment industry shall be determined by the people's governments of the provinces, autonomous regions and municipalities directly under the central government within the range prescribed by these Regulations.

 
Article 3 For taxpayers engaged in taxable activities under different tax items, the turnover, transfer and sales amounts (hereinafter referred to as "turnover") under different taxable items shall be accounted for separately. If the turnover has not been accounted for separately, a higher tax rate shall apply.
 
Article 4 For taxpayers providing taxable services, transferring intangible assets or selling immovable properties, the tax payable shall be computed according to the turnover and the prescribed tax rates. The formula for computing the tax payable is as follows:
Tax payable = Turnover * Tax rate
The tax payable shall be computed in Renminbi. The turnover of the taxpayers settled in foreign currencies shall be converted into Renminbi according to the exchange rate prevailing in the foreign exchange market.
 
Article 5 The turnover of the taxpayers shall be the total consideration and all other charges receivable for the provision of taxable services, transfer of intangible assets or sales of immovable properties by the taxpayers, except for the following situations:
1. For transportation enterprises which carry passengers or cargoes from the territory of the People' Republic of China to overseas locations and trans-ship passengers or cargoes to other transportation enterprises overseas, the turnover shall be the balance of transport charges for the whole journey less the transport charges paid to the sub-contracted transportation enterprises.
2.
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