Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Business Tax Rate of Certain Entertainment Industries

Circular of the Ministry of Finance and the State Administration of Taxation on Adjusting the Business Tax Rate of Certain Entertainment Industries

Cai Shui [2001] No. 73

April 19, 2001

Departments (bureaus) of finance of all provinces, autonomous regions, municipalities directly under the Central Government, the local taxation bureaus, and the Finance Bureau of Xinjiang Production and Construction Corps:

In order to strengthen the regulation on the recreational consuming behavior, upon the approval of the State Council, the business tax rate imposed on the entertainment activities, such as nightclubs, clubs, ballrooms, shooting, hunting, horse race, games, golf, bowling, billiards and so on, will be executed at the rate of 20% as of May 1, 2001.

For taxpayers engaged in different taxable businesses concurrently, which apply different tax rates, the operation income shall be accounted separately, and the tax payable shall be calculated separately as per respective rates applied.
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