Foreign Enterprises Will Start &Nbsp Next Month, Levy Urban Construction Tax And Education Fees.

capital

In 1985 and 1986, the State Council promulgated the Provisional Regulations on urban maintenance and construction tax in People's Republic of China and the Provisional Regulations on the collection of educational fees.

The tax on urban maintenance and construction and the additional education fee are based on the actual amount of tax paid by value-added tax, consumption tax and business tax (before 1994, for product tax, value-added tax and business tax).

The urban maintenance and construction tax is collected according to the location of the taxpayer as the urban area, the county seat (town) and other regions, at the rate of 7%, 5% and 1% respectively, and the education fee is currently collected at a rate of 3%.

foreign capital

Have negative effects.

The purpose of levying urban maintenance and construction tax and education surcharge for foreign-funded enterprises is not to increase the burden of foreign-funded enterprises, but to establish a tax mechanism and investment environment conducive to fair competition, in line with the requirements of "unified taxation system for all kinds of enterprises", in line with the principles of urban maintenance and construction tax and education fee attachment, and is conducive to the development of urban and rural construction and education.

As of the end of September this year, there are more than 8200 foreign-funded enterprises registered in the Local Taxation Bureau. After collecting tax on urban construction and education fees, foreign enterprises can increase taxes and fees.