Business tax

 Legal authority  (in chronological order)

• Decision of the Standing Committee of the National People's Congress on the Application of VAT, Consumption Tax, and Business Tax Tentative Regulations to foreign investment enterprises and foreign enterprises passed and announced on 29th December 1993 (Repealed on 1st January 2009)
• The PRC Business Tax Tentative Regulations, promulgated by the State Council on December 13, 1993 effective from January 1, 1994. (Repealed on 1st January 2009)
• Detailed Implementation Rules of the PRC Business Tax Tentative Regulation, issued by the Ministry of Finance on December 25, 1993 effective from January 1, 1994 (Repealed on 1st 2009)
• The PRC Business Tax Tentative Regulations, promulgated by the State Council on November 10, 2008 effective from January 1, 2009
• Detailed Implementation Rules for the PRC Tentative Regulations on Business Tax, issued by the Ministry of Finance and State Administration of Taxation on December 15, 2008 effective from January 1, 2009 (Chinese)

Scope of activities subject to business tax

1. Provision of labor services within mainland China;
2. Assigning intangible assets within mainland China;
3. Sale of immovable property situated inside Mainland China.

Business tax items and rates

	Tax item	Scope of levy	Tax rate
1	Transport industry	Land transport, water transport, air transport, pipeline transport, loading and unloading services	3%
2	Construction industry	Construction, installation, renovation, decoration, and other projects	3%
3	Finance and insurance industries		5%
4	Post and telecommunications		3%
5	Culture and sports		3%
6	Entertainment business	Halls providing performances by vocalists, dance halls, karaoke rooms, teahouse with music played or performed, billiards, golf, bowling and games	5% - 20%
7	Service industry	Agency, hotel industry, food and beverage industry, tourism industry, storage industry, leasing industry, advertising industry and other service industries	5%
8	Assignment of intangible assets	Assignment of land use rights, patent rights, non-patented technology, trademarks rights, copyrights and goodwill	5%
9	Sale of immovable property	Sale of buildings and other attachments to land