Tax 6.Business Tax
Business tax ("BT") is an important indirect tax imposed on services, and sales of intangible assets and real properties in China. BT is levied at rates ranging from 3% to 20% depending on the nature of the services.BT is imposed on the gross receipts of the taxpayer at applicable rates.
BT payable = gross receipts × applicable tax rate
The scope of business tax is mutually exclusive from Value Added Tax and so if a transaction is subject to business tax then it is not subject to Value Added Tax.
QIDA tell you the details for Business tax taxable items and tax rates table 50
Taxable items Scope of charge Tax rate
1. Transportation Transportation by land, water, air and pipeline, loading, unloading 3%
2. Construction Construction, installa tion, repair, decoration and other engineering work 3%
3. Finance and insurance 8% and from the year of 2001, 1% reduction each year to 5% from 2001 to 2003
4. Posts and telecommunications 3%
5. Cultural activities and sports 3%
6. Entertainment o Singing bars, dance halls, karaoke lounges, commercial music halls, musical tea houses, billiards, golf, bowling and amusement facilities 20%
7. Service Agency, hotel, catering restaurant, tourism, warehousing, leasing, advertising and other services 5%
8. Transfer of intangible assets Transfer of land-use rights, patent rights, non-patented technologies, trade marks, copyrights and goodwill 5%
9. Sale of immovable properties Sale of buildings and other attachments to land 5% .