Non-academic education and training institutions are different from private schools.
Non-academic education and training institutions include all kinds of vocational training institutions, adult examination and training institutions and other education and training institutions whose academic qualifications are not recognized by the state, but private schools engaged in academic education are not included. According to Article 5 of People's Republic of China (PRC) Private Education Promotion Law, private schools and public schools have the same legal status. Article 46 stipulates that private schools enjoy preferential tax policies stipulated by the state. Paragraph 1 of Article 38 of the Regulations for the Implementation of the Law on the Promotion of Private Education in People's Republic of China (PRC) stipulates that private schools that investors do not require reasonable returns shall enjoy the same tax and other preferential policies as public schools according to law. Therefore, public welfare private schools approved by the people's government at or above the prefecture level or the education administrative department of the government at the same level and recognized by the state as training targets are not non-academic education and training institutions, and can enjoy the preferential policy of exempting education services from business tax according to law.
Case: Teachers of an art college in a certain district set up their own dance school and enrolled students for professional dance performance training. The teacher thinks that he belongs to a private school and should enjoy the tax exemption policy for educational services, so he goes to the district local taxation bureau to handle the business tax reduction and filing procedures. After investigation and verification by tax officials, the dance school enrolls students for social youth, with high tuition fees and no academic qualifications. It belongs to for-profit private training institutions, non-academic education, and does not belong to public welfare private schools with academic qualifications recognized by the state. Therefore, you can't enjoy the tax exemption policy for educational services, and you should pay business tax normally.
Specific scope of tax-free education services
At the same time, according to the Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance of People's Republic of China (PRC) on Strengthening the Management of Business Tax Collection on Education Services (Caishui [2006] No.3), the income from providing education services refers to the income obtained by providing academic education services to registered students included in the prescribed enrollment plan, including tuition fees, accommodation fees, textbook fees, operation fees, meals and examination registration fees charged according to the prescribed standards after being audited by relevant departments. Fees, sponsorship fees, school selection fees and other income beyond the prescribed scope collected by schools in various names are not income from educational services exempted from business tax and should be levied according to regulations. Therefore, even in academic schools, not all income can enjoy the tax exemption policy, and business tax must be paid if it exceeds the prescribed standards and scope.