The applicable tax rate for general taxpayers in the construction industry is 11%; however, taxpayers of clearing contractors, taxpayers of A-supply projects, and taxpayers of old projects in construction can choose to apply the simplified method of taxation, which is levied at the simplified rate of 3%, and the applicable levy rate for small-scale taxpayers is 3%.
Construction tax rate
Business tax in the construction industry has been reclassified as value-added tax (VAT) with a tax rate of 11%. The "conversion" of the construction industry involves the construction industry and its upstream and downstream industrial chain, and the actual tax burden of construction enterprises is likely to increase:
Definition of general taxpayers and small-sized taxpayers
General taxpayers use the basic tax rate plus a low tax rate model; small-sized taxpayers use the levy rate model.
Taxable amount = current output tax - current input tax = main business income (excluding tax) * tax rate - (materials + labor expenses) * tax rate
Calculation of output tax is very simple and direct, i.e., the main business income of the construction business multiplied by the tax rate (11%);
Calculation of input tax is relatively cumbersome and is the enterprise to pay for subcontracts, materials, equipment, office supplies and labor payments are said to be collected in VAT invoices for the tax.
The scope of taxation of the construction industry
I, the basic provisions of the scope of taxation of the construction industry
(a) the scope of taxation of the construction industry tax items specified in the scope of taxation of the construction industry tax items are, in the People's Republic of China *** and the country to provide the construction, repair, installation, decoration and other engineering operations of the labor service. Construction: refers to the engineering operations of new construction, alteration and expansion of various buildings and structures. It includes all kinds of equipment or pillars, operating platforms, kilns and metal structures attached to buildings. Repair: refers to the buildings, structures for repair, reinforcement, maintenance, improvement, so that it restores the original value of use or extend its use of construction operations. Installation: refers to the production equipment, power equipment, lifting equipment, transportation equipment, transmission equipment, medical laboratory equipment and other equipment, assembly, placement of engineering operations, including workbenches connected with equipment, ladders, railings installed engineering operations and the installation of equipment, insulation, corrosion, heat preservation, painting and other engineering operations. Decoration: It refers to the engineering work of decorating buildings and structures to make them beautiful or with specific purposes. Other engineering operations: refers to a variety of engineering operations other than construction, repair, installation and decoration, such as agency telecommunications projects, dredging, drilling (drilling), demolition of buildings, water conservancy projects, road construction, land leveling, scaffolding, blasting and other engineering operations.
(2) the construction industry tax scope of several specific provisions of the basic provisions of the construction industry tax scope, the current tax law on the following specific items made some specific provisions. It should be pointed out that the specific provisions mentioned here refer to the specific determination of some things that are easy to diverge in understanding according to the basic provisions.
1, on behalf of the telecommunication project
2, well drilling project
3, the problem of work in lieu of food
4, the internal engineering issues (according to the law does not need to apply for tax registration of the internal organization)
2, special provisions of the scope of the taxation of the construction industry
(a) on the self-built behavior of the tax issue of the so-called self-built behavior, refers to the units that have the ability to construct buildings on their own and then use them for the purpose of the building. The so-called self-construction behavior is to have the ability to construct the unit to build their own buildings and then use or sell the behavior. According to the basic principle of business tax, self-construction is not taxable because it does not provide taxable services to the outside world, and therefore its intermediate construction is not taxable.
(2) on dredging works dredging is the manual or mechanical methods to remove the waterway, port, dock, reservoirs and other silt, digging deeper sloughs, in order to smooth the flow of water or to improve the navigational conditions and other operations.
(C) on the installation of cable television cable television installation fee, refers to the cable television station for the user to install cable television receiving device, a one-time installation fee charged to the user, also known as the initial installation fee. According to the provisions of the current business tax annotated tax items, this initial installation fee belongs to the scope of taxation of the construction industry.
(4) About the gas initial installation fee, Cai Shui [2003] No. 16, "Gas companies and units producing and selling goods or providing VAT taxable services, when selling goods or providing VAT taxable services, the collection fees (including piped gas collection money (initial installation fee〉)、handling fees, collection fees, etc. collected on behalf of the relevant departments to the buyer belong to VAT out-of-priced charges, VAT shall be levied and business tax shall not be levied". Guo Shui Han [2002] No. 105 replied to Guangdong Local Taxation Bureau, "Piped gas capitalization fee (initial installation fee) is used for the construction of piped gas projects and technological transformation, and is a one-time fee charged to the users in the reporting and installation process. According to the current business tax policy, the piped gas capitalization fee (initial installation fee), should be levied according to the construction industry tax items of business tax".
(E) on the greening project greening project is often connected with the construction project, or itself is a component of a construction project. For example, greening and land leveling is closely linked, and land leveling itself belongs to the construction industry tax items in the "other engineering operations", so the greening project belongs to the scope of taxation of the construction industry. Attention: Contracting the whole landscaping project is subject to construction business tax according to the full price received. No deduction is allowed for raw materials such as saplings and flowers purchased for landscaping.
(F) the construction and installation works contracted by the engineering contracting company according to what tax items tax contracted by the engineering contracting company contracted construction and installation works business, that is, engineering contracting company and the construction unit signed a contract for the construction and installation works business, regardless of whether it is involved in the construction, should be according to the "construction industry" tax items levied business tax. Engineering contracting company does not sign a contract with the construction unit to contract construction and installation project contract, is only responsible for the organization and coordination of the project business, the engineering contracting company's business by the "service industry" tax items levied business tax. (State Taxation Letter [1995] No. 156)
(VII) on the national defense projects and the military system of construction projects according to the provisions of the Cai Shui [2001] No. 187, units and individuals contracted for national defense projects and the military system of construction and installation projects to obtain income from January 1, 2001, resumption of the collection of business tax.
(viii) According to the provisions of Guo Shui Han [2009] No. 520, in the process of the taxpayers being entrusted with building demolition, land leveling and payment of demolition and relocation compensation to the original land-use right holders on behalf of the entrusted parties, the revenues obtained from the provision of building demolition and land leveling services shall be paid business tax in accordance with the tax item of "Construction Industry".
Legal Basis
"Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Value-added Tax (VAT)
Article 6: Taxpayers shall separately account for the sales of goods and the turnover of non-VAT taxable labor services in respect of the following mixed sales, and calculate and pay the VAT according to the sales of the goods sold, and the turnover of the non-VAT The turnover of non-VAT taxable services shall not be subject to VAT; if they are not separately accounted for, the sales of goods shall be approved by the competent tax authorities:
(1) the sale of self-produced goods and the provision of construction services at the same time;
(2) other cases stipulated by the Ministry of Finance and the State Administration of Taxation.