Circular of Ministry of Finance concerning the Release of the Detailed Rules for the Implementation of the Tentative Regulations of the People's Republic of China on Business Tax
Circular of Ministry of Finance concerning the Release of the Detailed Rules for the Implementation of the Tentative Regulations of the People's Republic of China on Business Tax
Circular of Ministry of Finance concerning the Release of the Detailed Rules for the Implementation of the Tentative Regulations of the People's Republic of China on Business Tax
Cai Fa Zi [1993] No. 40
December 25, 1993
All ministries and commissions of the State Council and institutions directly under the State Council,People's governments of all provinces, autonomous regions and municipalities directly under the Central Government ,and cities specifically designated in State planning,The Finance Departments (Bureaus), State Administration of Taxation Offices and Local Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in State planning,
Detailed Rules for the Implementation of the Tentative Regulations of the People's Republic of China on Business Tax are hereby printed and distributed to you for compliance and implementation.
Appendix:
Detailed Rules for the Implementation of the Tentative 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 Interim Regulations of the People's Republic of China on Business Tax(hereinafter referred to as the "Regulations").
Article 2 "Taxable services" as mentioned in Article 1 of the Regulations refers to services within the scope of taxable items in the communications and transportation, construction, finance and insurance, posts and telecommunication, culture and sports, entertainment and service industries.
Processing, repair and replacement are not taxable services as mentioned in the Regulations (hereinafter referred to as "non- taxable services").
Article 3 "Foreign exchange, marketable securities and futures buying and selling business" as mentioned in Item 5 of Article 5 of the Regulations refers to the foreign exchange, marketable securities and futures buying and selling business carried on by financial institutions (including banks and non-bank financial institutions). The buying and selling of foreign exchange, marketable securities or futures by non-financial institutions or individuals shall not be subject to Business Tax.
"Futures" as mentioned in Item 5 of Article 5 of the Regulations refer to non-commodities futures. Futures on commodities shall not be subject to Business Tax.
Article 4 "Provision of taxable services, transfer of intangible assets or the sale of immovable properties" as mentioned in Article 1 of the Regulations refers to activities of providing taxable services, transferring intangible assets or ownership of immovable properties with consideration (hereinafter referred to as the "taxable activities"). However, taxable services provided by the staff employed by units or individual operators to their own units or employers shall not be included therein.
The term "with consideration" in the preceding paragraph includes receipts of currency, goods and other economic benefits.
For units or individuals that sell their newly self-constructed buildings (hereinafter referred to as "self-construction"), their self-construction activities shall be regarded as provision of taxable services.
Transfers of limited property rights, or permanent rights, to use immovable properties, and transfers by units of immovable properties by way of gifts to others shall be regarded as sales of immovable properties.
Article 5 A sales activity that involves both taxable services and goods is deemed to be a mixed sales activity. Mixed sales activities of enterprises, enterprise units or individual business operators engaged in production, wholesale or retail of goods shall be classified as sales of goods, and Business Tax shall not be levied on the sales; mixed sales activities of other units and individuals shall be deemed as provision of taxable services and tax shall be levied on the sales.
Whether taxpayers' sales activities are mixed sales activities shall be determined by the collection authorities under the State Administration of Taxation.
"Goods" as mentioned in Paragraph 1 refers to tangible moveable goods, including electricity, heat and gas.
"Enterprises, enterprise units or individual business operators engaged in the production, wholesale and retail of goods" as mentioned in Paragraph 1 include enterprises, units with an enterprise nature and individual business operators engaged principally 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 sales amount of taxable services and the sales amount of goods or non-taxable services shall be accounted for separately.
......
Cai Fa Zi [1993] No. 40
December 25, 1993
All ministries and commissions of the State Council and institutions directly under the State Council,People's governments of all provinces, autonomous regions and municipalities directly under the Central Government ,and cities specifically designated in State planning,The Finance Departments (Bureaus), State Administration of Taxation Offices and Local Taxation Bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and cities specifically designated in State planning,
Detailed Rules for the Implementation of the Tentative Regulations of the People's Republic of China on Business Tax are hereby printed and distributed to you for compliance and implementation.
Appendix:
Detailed Rules for the Implementation of the Tentative 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 Interim Regulations of the People's Republic of China on Business Tax(hereinafter referred to as the "Regulations").
Article 2 "Taxable services" as mentioned in Article 1 of the Regulations refers to services within the scope of taxable items in the communications and transportation, construction, finance and insurance, posts and telecommunication, culture and sports, entertainment and service industries.
Processing, repair and replacement are not taxable services as mentioned in the Regulations (hereinafter referred to as "non- taxable services").
Article 3 "Foreign exchange, marketable securities and futures buying and selling business" as mentioned in Item 5 of Article 5 of the Regulations refers to the foreign exchange, marketable securities and futures buying and selling business carried on by financial institutions (including banks and non-bank financial institutions). The buying and selling of foreign exchange, marketable securities or futures by non-financial institutions or individuals shall not be subject to Business Tax.
"Futures" as mentioned in Item 5 of Article 5 of the Regulations refer to non-commodities futures. Futures on commodities shall not be subject to Business Tax.
Article 4 "Provision of taxable services, transfer of intangible assets or the sale of immovable properties" as mentioned in Article 1 of the Regulations refers to activities of providing taxable services, transferring intangible assets or ownership of immovable properties with consideration (hereinafter referred to as the "taxable activities"). However, taxable services provided by the staff employed by units or individual operators to their own units or employers shall not be included therein.
The term "with consideration" in the preceding paragraph includes receipts of currency, goods and other economic benefits.
For units or individuals that sell their newly self-constructed buildings (hereinafter referred to as "self-construction"), their self-construction activities shall be regarded as provision of taxable services.
Transfers of limited property rights, or permanent rights, to use immovable properties, and transfers by units of immovable properties by way of gifts to others shall be regarded as sales of immovable properties.
Article 5 A sales activity that involves both taxable services and goods is deemed to be a mixed sales activity. Mixed sales activities of enterprises, enterprise units or individual business operators engaged in production, wholesale or retail of goods shall be classified as sales of goods, and Business Tax shall not be levied on the sales; mixed sales activities of other units and individuals shall be deemed as provision of taxable services and tax shall be levied on the sales.
Whether taxpayers' sales activities are mixed sales activities shall be determined by the collection authorities under the State Administration of Taxation.
"Goods" as mentioned in Paragraph 1 refers to tangible moveable goods, including electricity, heat and gas.
"Enterprises, enterprise units or individual business operators engaged in the production, wholesale and retail of goods" as mentioned in Paragraph 1 include enterprises, units with an enterprise nature and individual business operators engaged principally 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 sales amount of taxable services and the sales amount of goods or non-taxable services shall be accounted for separately.
......