Circular of the Ministry of Finance and the State Administration of Taxation on the Policy of Exempting Certain Agricultural Production Materials from Value-added Tax Cai Shui [2001] No. 113 Circular of the State Administration of Taxation on the Issuance of the "Notes on the Scope of Taxation of Certain Goods Subjected to Value-added Tax" (Guoshuifa [1993] No. 151)
Agricultural machinery refers to all kinds of agricultural production (including forestry, animal husbandry, sideline industry and fishery) used for various kinds of machines and mechanized and semi-mechanized farm implements, as well as small farm implements.
The scope of agricultural machinery is:
1. tractor. Is the internal combustion engine as the driving traction gear for operations and transportation of materials. Including wheel tractors, crawler tractors, walking tractor, machine plow boat.
2. Soil tillage machinery. Is the soil for plowing and finishing machinery. Including machine-guided plow, machine-guided harrow, rotary tiller, suppressor, joint cultivator, loamer, other soil tillage machinery.
3. Agricultural capital construction organizations. Is engaged in the basic construction of farmland special machinery. Including ditching and ridge machine, ditching and pipe-laying machine, shoveling and throwing machine, grader, other farmland basic construction machinery.
Expanded Information
Scope of Tax Exemption
Tax Exemptions from Business Tax
(1) Nursery schools, kindergartens, nursing homes, and welfare institutions for the disabled provide parenting services, marriage introduction and funeral services.
(2) Labor services provided by individuals with disabilities.
(3) Medical services provided by hospitals, clinics, and other medical institutions.
(4) Educational labor services provided by schools and other educational institutions, and labor services provided by students working and studying.
(5) Agricultural mechanization, drainage and irrigation, pest control, agricultural and animal husbandry insurance as well as related technical training, poultry, livestock, aquatic animal breeding and disease control business.
(6) The business of selling tickets for cultural activities organized by memorials, museums, cultural centers, art galleries, exhibition halls, painting and calligraphy institutes, libraries, and cultural relics preservation units, and the business of organizing cultural and religious activities at religious sites.
In addition to these tax exemptions, there are also tax exemptions for individuals whose taxable income does not reach the starting point. The starting point for the monthly turnover of 1,000 to 5,000 yuan; the starting point for each (daily) turnover of 100 yuan. If the starting point is reached, the full amount of business tax is levied.
Reference: Baidu Encyclopedia - Tax Exemption