With the continuous development of world trade, customs duties accounted for the proportion ofChina’s fiscal revenue is declining. The tariff is a tax for the trade of goods entering and leaving the country or customs territory of goods levied, which is imposed byChina’s Customs.
Business tax is imposed from turnover of units and individuals, who provide taxable services, transfer intangible assets or sale of real estate inChina.
Taxable objects: the taxpayers of trade goods are the consignee of the imported goods and the consignor of export goods, the former should be subject to import tariffs, the latter shall pay export tariffs.
Import tariffs are set general rates and preferential rates. General tariff rates are for originating goods of countries or regions, which have not concluded reciprocal tariff agreements withChina; preferential tariff rates are for originating goods of countries or regions, which have concluded reciprocal tariff agreements withChina; the total level of import tariffs is 9.8 percent in the recent.
Dutiable price of ordinary imported goods is CIF price, dutiable price of exports goods is FOB price.
Tax basis: tax basis of tariff is basic on dutiable price and quantity of import and export goods, the calculation of tax payable is according to the provisions of the applicable tax rate or tax standards.
Tax payable = import and export of goods taxable quantity × unit tariff
dutiable price × applicable tax rate
Tax payable = the number of taxable goods of import and export × applicable tax standard
Tariff payable: the taxpayer or his agent shall fill the customs the tax payment certificate, and pay to the designated bank within 15 days from the date of payment certificate.
Classifications of tax item: current business tax items of China is 9: transportation, construction, post and telecommunications, culture and sports, finance and insurance, services, transfer of intangible assets, selling real estate, the entertainment industry.
Tax objects are the units and individuals who prescribed taxable services, transfer intangible assets or sale of real estate accordance with “Regulations on Business Tax of the People’s Republic ofChina” in theterritoryofChina. Unit refers state-owned enterprises, collective enterprises, private enterprises, joint-stock enterprises, other enterprises and administrative units, institutions, military units, social organizations and other units.
Tax items and tax rates
Business tax rate is according to different industries and different operations, divided into four levels in accordance with the role degree of these industries in the national economy, keeping the overall tax burden standards and the simple principle:
For the 4 tax items of transport industry, construction, post and telecommunications, culture and sports, the tax rate is 3%;
Tax rate of financial and insurance is 5%;
For the 3 tax items of services, transfer of intangible assets, sales of real estate, the tax rate is 5%;
The tax rate of entertainment industry is 5% ~ 20%, the specific applicable tax rate is accordance with the Provincial People’s Government of China announced prevail.
The formula is: Tax payable = turnover × applicable tax rate
Time and deadline of tax payment:
Business tax liability arising should be the date of taxpayers receiving business proceeds or obtaining a copy of the business proceeds credentials.
Tax deadline of business tax is on the days of 5, 10, 15 or a month. The competent tax authorities should approve the specific tax period.