Implementing Rules for the Interim Regulations of the People's Republic of China on Business Tax (2008)

Implementing Rules for the Interim Regulations of the People's Republic of China on Business Tax (2008)

Order of the Ministry of Finance No. 52

December 18, 2008
　
Article 1 These Implementing Rules are formulated in accordance with the Interim Regulations of the People's Republic of China on Business Tax (hereinafter referred to as the "Regulations").
　
Article 2 The term "services as prescribed in the Regulations" as used in Article 1 of the Regulations refers to services within the scope of taxable items in the transportation, construction, finance and insurance, posts and telecommunications, culture and sports, entertainment and service industries.
Processing, repair and replacement are not services as prescribed in the Regulations (hereinafter referred to as 'non- taxable services').
　
Article 3 The term "provision of services as prescribed in the Regulations, transfer of intangible assets or the sale of immovable properties" as used in Article 1of the Regulations refers to activities of providing such services as prescribed in the Regulations, 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 receipt of currency, goods and other economic benefits.
　
Article 4 The term "the provision of services as prescribed in the regulations, the transfer of intangible assets or the sale of immovable property within the people's republic of china (hereinafter referred to as "within China") refers to the following facts:
1. Units or individuals that provide or receive services as prescribed in the Regulations are within China;
2. Units or individuals that receive the intangible assets being transferred (not including land use rights) are within China;
3. Land in respect of which land use rights are transferred or leased is within China; and
4. Immovable assets that are sold or leased are within China.
　
Article 5 where a taxpayer falls under any of the following circumstances, it shall be deemed that a taxable activity arises:
1. Where the unit or individual in question transfers immovable property or land use rights to other units or individuals as gifts;
2. Where the unit or individual in question sells any new self-constructed (hereinafter referred to as "self-constructed") buildings;
3. Any other circumstances specified by the Ministry of Finance and the State Administration of Taxation.
　
Article 6 A sales activity that involves both taxable services and goods shall be deemed to be a mixed sales activity. Except as otherwise provided in Article 7 hereof, 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 them; mixed sales activities of other units and individuals shall be classified as provision of taxable services, and business tax shall be levied thereon.
The term "goods" as used in Paragraph 1 refers to tangible moveable goods, including electricity, heat and gas.
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