There is a 5% business tax to be paid; corporate income tax rate; there are two ways of collecting corporate income tax for advertising companies.
Checking and collecting: enterprises applying financial accounting standards, according to the net profit after income minus costs and expenses to calculate the enterprise income tax, the tax rate is 25%.
Approved levy: applicable to enterprises that are able to correctly account for revenue but not costs and expenses, the enterprise income tax is calculated on the basis of the invoiced amount, and the tax rate is 2.5%%. If the invoiced amount of the advertisement company is 1 million yuan, the enterprise income tax paid according to the approved levy will be 25,000 yuan.
Local surtax; urban construction tax is 7% business tax; education surtax 3%; local education surtax 1%.
Expanded Information
Article 54 of the Enterprise Income Tax Law, which came into effect on January 1, 2008, states:
Enterprise income tax is paid in advance in monthly or quarterly installments.
Enterprises shall file an advance payment of enterprise income tax return with the tax authorities within fifteen days from the end of the month or quarter, regardless of whether they have made a profit or incurred a loss, and pay the tax in advance.
Enterprises should submit annual enterprise income tax returns to the tax authorities within five months from the date of year-end, and remit and settle the tax payable and refundable.
Enterprises should attach financial accounting reports and other relevant information to the enterprise income tax return in accordance with the regulations. If there are difficulties in filing the return within the prescribed filing period, they may submit the return for extension with the approval of the competent tax authorities.
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