The difference between business tax and tax rate is:
1. Business tax = business income * business tax rate
Business tax (Business tax) is a taxable product provided in China A tax levied on the turnover obtained by entities and individuals who provide services, transfer intangible assets or sell real estate. Business tax is a major tax in the turnover tax system.
On May 1, 2016, the tax-to-VAT reform plan for the last three industries of construction and real estate, finance and insurance, and life services will be launched, and the possibility of implementation in separate industries cannot be ruled out.
Among them, the value-added tax rate for Jian'an real estate is tentatively set at 11%, and that for the financial insurance and life service industries is 6%. This means that after entering the second half of 2016, China will completely bid farewell to business tax.
2. The tax rate is the proportion or amount of tax levied on the tax object.
The tax rate is the yardstick for calculating the amount of tax, and it is also an important indicator of the severity of the tax burden. China's current tax rates mainly include proportional tax rates, excess progressive tax rates, fixed tax rates, and excess progressive tax rates.
The tax rate referred to here refers to the business tax rate.
The business tax rate varies according to different industries:
(1) Transportation industry
The business tax rate is: 3%
Taxation scope : Land transportation, water transportation, air transportation, pipeline transportation, loading and unloading
Common taxation services:
Land transportation: transporting goods or goods through railways, highways, cable cars, ropeways and other land routes Passenger transportation business.
Water transportation: The transportation business of transporting goods or passengers through natural, artificial waterways or ocean waterways such as rivers, lakes, rivers, and rivers. Salvage is taxed as water transport.
Shipping: The transportation business of transporting goods or passengers through air routes. General aviation business and aviation ground service business are taxed as air transport.
Pipeline transportation: the transportation business of transporting gas, liquid, and solid materials through pipeline facilities.
Loading, unloading and handling: The business of loading, unloading and moving goods between means of transportation, between loading and unloading sites, or between means of transportation and loading and unloading sites using loading and unloading means or human or animal power. Moving business is taxed as "loading, unloading and moving".
(2) Construction engineering industry
The business tax rate is: 3%
Taxation scope: construction, installation, repair, decoration and other engineering operations
Common taxation businesses:
Construction: engineering operations for new construction, reconstruction, and expansion of various buildings and structures, including the installation or installation of various equipment or pillars and operating platforms connected to the building. Installation engineering operations, as well as various kiln and metal structure engineering operations are included.
Installation: Assembly operations and installation engineering operations of production equipment, power equipment, lifting equipment, transportation equipment, transmission equipment, medical experimental equipment and other various equipment (including workbenches and ladders connected to the equipment , railing installation engineering work and insulation, anti-corrosion, heat preservation, painting and other engineering work for the installed equipment), cable TV installation fees.
Repair: The engineering work of repairing, reinforcing, maintaining, and improving buildings and structures to restore their original use value or extend their service life.
Decoration: The engineering work of modifying buildings and structures to make them beautiful or for specific purposes.
Other engineering operations: agency for telecommunications projects, water conservancy projects, road construction projects, drilling projects, land leveling, scaffolding, dredging projects, blasting projects, demolition of buildings or structures, greening projects and other engineering operations.
(3) Finance and insurance industry
The business tax rate is: 5%
Taxation scope: finance and insurance
Common taxation businesses :
Finance: loan business, financial leasing business, financial product transfer business (including the business of transferring ownership of foreign exchange, securities, and non-cargo futures), financial brokerage business, other financial businesses (including bank settlement and bill discounting business).
Insurance: personal insurance business, liability insurance business.
(4) Posts and telecommunications industry
The business tax rate is: 3%
Taxation scope: postal and telecommunications
Common taxation businesses :
Postal services: delivery of letters or parcels, postal remittances, distribution of newspapers and periodicals, sales of postal items, postal savings and other postal services. Philatelic companies levy business tax on sales of philatelic products.
Telecommunications: telegraphs, telexes, telephones (including wired telephones, wireless telephones, paging telephones, leasing telephone circuit equipment, repairing or leasing broadcasting circuits, television signals and postal and telecommunications departments selling mobile phones, pagers and The business of providing wireless communication services to users), telephone installation (including the business of installing fixed or mobile phones for users), sales of telecommunications items (including the business of selling special general telecommunications items while providing telecommunications services), and other telecommunications business.
Note: The postal industry has changed from business tax to VAT, and only the telecommunications industry continues to pay business tax)
(5) Culture and sports industry
The business tax rate is: 3%
Scope of collection: cultural industry (performances, broadcasts, other cultural industries, operating tourist venues). Sports industry (the business of organizing various competitions and providing venues for sports competitions or sports events).
Common taxable businesses:
Performance: businesses where units and individuals conduct performance activities such as drama, singing and dancing, fashion, bodybuilding, acrobatics, folk art, martial arts and sports.
Broadcasting: The business of disseminating works through wireless or wired devices such as radio stations, television stations, sound systems, closed-circuit televisions, and satellite communications, and screening various programs in cinemas, theaters, video halls, and other places. Excludes advertising broadcast business. Charges for paid programs on radio and television stations are taxed as "broadcast".
Other cultural industries: various exhibitions, training activities, holding literature, art, science and technology, lectures, speeches, report meetings, library books and information lending, etc.
Business of tourist attractions: ticket sales in parks, zoological and botanical gardens and other various tourist attractions.
Sports industry: The business of units and individuals providing venues for holding sports competitions or sports activities.
(6) Entertainment and leisure industry
The business tax rate is: 20%
Taxation scope: karaoke halls, dance halls, karaoke dance halls (including nightclubs, singing studios Rooms), music cafes (including bars), Internet cafes, golf, entertainment (such as shooting, hunting, horse racing, game consoles, bungee jumping, go-karts, hot air balloons, paramotors, archery, darts)
Common symptoms Tax business:
The business of providing venues and services for entertainment activities (including catering services provided while customers are engaging in entertainment activities and restaurants, restaurants and other catering establishments, providing services for customers to engage in self-service activities while dining) Services provided by singing and dancing activities for self-entertainment).
Note: When operating bowling and billiards, and providing venues and services for customers to engage in billiards and bowling activities, the tax rate is 5%.
(7) Advertising service industry
The business tax rate is: 5%
The scope of collection: agency industry, hotel industry, catering industry, tourism industry, warehousing industry, Leasing industry, advertising business and other service industries
Common taxation businesses:
Agency industry: the business of purchasing and selling goods, import and export agency, introduction services, and other agency services.
Hotel industry: the business of providing accommodation services.
Catering industry: the business of providing food and beverage consumption services to customers by providing both food and beverage venues.
Tourism industry: the business of arranging accommodation, transportation, and providing tour guides and other travel services for tourists.
Warehouse industry: the business of using warehouses, goods or other places to store and keep goods on behalf of customers.
Leasing industry: the business of transferring venues, buildings, items, equipment or facilities to others for use within an agreed period of time. The act of subletting the leased premises, items, equipment, etc. to others is taxed as "lease".
Advertising business: Use books, newspapers, magazines, radio, television, movies, slides, street signs, posters, windows, neon lights, light boxes, etc. to introduce products, business services, cultural and sports programs, or announcements, statements The business of promoting and providing related services on other matters.
Other service industries: bathing, haircutting, washing and dyeing, photography, art, mounting, writing, typing, engraving, calculation, testing, decoration, packaging, design, drawing, consulting, testing, testing, Map publishing, surveying, mapping, exploration and other service businesses.
Note: The service industry still pays business tax, and modern service industry projects pay value-added tax instead)
(8) Transfer of intangible assets
The business tax rate is: 5%
Scope of collection: transfer of land use rights
Note: Patent rights, non-patented technologies, trademark rights, copyrights, goodwill, these projects have now been converted from business tax to VAT, and no business tax is paid .
Common taxation business:
Transfer of land use rights: units and individuals transfer their transferred land use rights, units and individuals transfer completed land pre-development or ongoing land Projects under construction that are in early development but have not entered the construction stage.
Transfer of patent rights: the act of transferring ownership or use rights of patented technology.
Transfer of non-patented technology: the act of transferring ownership or use rights of non-patented technology.
Transfer of trademark rights: the act of transferring ownership or use rights of a trademark.
Transfer of copyright: the act of transferring the ownership or use rights of written works, graphic works (such as picture albums, photo albums), and audio-visual works (such as movie masters, video tape masters).
Transfer of goodwill: the act of transferring the right to use goodwill.
(9) Sales of real estate
The business tax rate is: 5%
Taxation scope: sales of buildings and other land attachments.