Sales Tax

Article 1 of "The People's Republic of China on Business Tax" provides:       In PRC, provisions of services, transfer of intangible assets or the sale of real estate units and individuals in local territory are business taxpayers.   It has to pay sales tax.

Business tax withholding agents:   those units or individuals outside the PRC but providing taxable services, transfer of intangible assets or selling real estate in the territory and they do not have the operating agency, its territory agents are the withholding agents; for those without agents in the territory, the transferee or purchaser are the withholding agents.

Business Tax Rate Table


       Tax items                                                   Tax rates

  1. Transportation                                                               3%           
  2. Construction                                                                  3%
  3. Financial and insurance industry                                  5%
  4. Telecommunications                                                      3%
  5. Cultural and Sports                                                        3%
  6. Entertainment                                                                 5% -20%
  7. Services                                                                        5%
  8. Transfer of intangible assets                                        5%
  9. Real estate selling                                                         5%