Circular of the State Administration of Taxation on Printing and Distributing the Annotations on Business Tax Items (Draft for Trial Implementation)

Circular of the State Administration of Taxation on Printing and Distributing the Annotations on Business Tax Items (Draft for Trial Implementation)
Circular of the State Administration of Taxation on Printing and Distributing the Annotations on Business Tax Items (Draft for Trial Implementation)

Guo Shui Fa [1993] No. 149

December 27, 1993

The Annotations on Business Tax Items (for Trial Implementation) is hereby printed and distributed to you and shall come into effect as of January 1, 1994 in replacement of the Annotations on Business Tax Items (for Trial Implementation) printed and distributed on March 21, 1986 by the General Tax Bureau of the Ministry of Finance.

Appendix:
Annotations on Business Tax Items (for Trial Implementation)

I. Communications and Transportation
The communications and transportation industry shall mean the business activities conveying cargoes or passengers to the destination by means of transportation vehicles or manpower and animal power.
The scope of this tax item includes: land, water, air and pipeline transportation as well as loading and unloading transportation.
Various labor service activities related to transportation all come under the scope of this tax item.
1.Land Transportation
Land transportation shall mean the transportation business of transporting cargoes or passengers via land route (above or under ground), including railway, highway, cable car, cableway transportation, as well as other means of land transportation.
2. Water Transportation
Water transportation shall mean the transportation business of carrying cargoes or passengers via rivers, lakes and streams and other natural and artificial water courses or sea lanes.
Tax shall be levied on salvage in light of provisions on that applicable to water transportation.
3.Air Transportation
Air transportation shall mean the transportation business of carrying cargoes or passengers via air routes. Tax shall be levied on general air service and air-ground service business in light of air transportation. General air service shall mean the business of providing flying services for specialized undertakings, such as air photography, aerial survey, air exploration, air forest range, air suspended sowing and air precipitation.
Air-ground service business shall mean the business of providing ground services, including navigation by air liners, airports, civil aviation administrative bureaus and air terminals to Chinese and foreign airplanes or other aircrafts which navigate in the territory of China or land in airports within China.
4.Pipeline Transportation
Pipeline transportation shall mean the transport business of delivering gas, liquid and solid materials through pipeline facilities.
5. Loading-Unloading Transportation
Loading-unloading transportation shall mean the business of loading, unloading and transporting cargoes between means of transportation, between the loading-unloading spots or between the means of transportation and the loading-unloading spots through loading and unloading facilities or manpower and animal power.

II. The Construction Industry
The construction industry shall mean construction and installation engineering operations.
The scope of this tax item includes construction, installation, repair, decoration and other engineering operations.
1. Construction
Construction shall mean the engineering operation of building new buildings or structures, reconstructing and expanding existing buildings and structures, including the engineering operation of installation or decoration of various types of equipments or pillars and operating platforms connected to the structures, as well as the engineering operation of various kilns and metal structures.
2.Installation
Installation shall mean the engineering business of the assembly and arrangement of production equipments, power equipments, hoisting equipments, transportation equipments, transmitting equipments, medical and lab equipments, as well as various other kinds of equipments, including the engineering operation of setting up operating platforms, ladders, balustrades connected to the equipments and engineer operation of insulation, anti-corrosion, heat preservation and paint for the installation of equipments.
3.Repair
Repair shall mean the engineering operation of repairing, reinforcing, maintaining and improving of building and structures for the purpose of restoring the original use value or extend the service period thereof.
4.Decoration
Decoration shall mean the engineer operation of decorating the buildings and structures, so that they will look more beautiful or have a particular purpose.
5.
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