Urban construction tax is based on the actual paid value-added tax, consumption tax and business tax, and paid according to the legal proportion, which is 7% in urban areas, 5% in counties and towns, and 1% in other areas. Education surcharge is paid at 3% of actual value-added tax, consumption tax and business tax.

Education surcharge is an additional tax levied on units and individuals who pay value-added tax, business tax and consumption tax in cities and counties. According to the relevant provisions of the State Council Guofa (1986) No.50 document, the surcharge for education is based on the tax amount of value-added tax, consumption tax and business tax actually paid by all units and individuals, and paid at the same time respectively.

Individual Income Tax Law of the People's Republic of China

Article 1 Individuals who have domicile or no domicile in China but have resided in China for a total of 183 days in a tax year are individual residents. Individual income tax shall be paid in accordance with the provisions of this Law on income obtained by individual residents from inside and outside China.

Individuals who have neither domicile nor residence in China, or who have lived in China for less than 183 days in a tax year, are non-resident individuals. Income obtained by non-resident individuals from China shall be subject to individual income tax in accordance with the provisions of this Law.

The tax year starts from Gregorian calendar 1 month 1 day and ends on1February 3 1 day.

Article 2 Individual income tax shall be paid on the income of the following individuals:

(1) Income from wages and salaries;

(2) Income from remuneration for labor services;

(3) Income from remuneration;

(4) Income from royalties;

(5) Operating income;

(6) Income from interest, dividends and bonuses;

(7) Income from property lease;

(8) Income from property transfer;

(9) Accidental income.

Individual residents who obtain income from items 1 to 4 of the preceding paragraph (hereinafter referred to as comprehensive income) shall calculate individual income tax according to the tax year; Non-resident individuals who obtain income from items 1 to 4 of the preceding paragraph shall calculate individual income tax on a monthly or itemized basis. Taxpayers who obtain income from items 5 to 9 of the preceding paragraph shall calculate individual income tax separately in accordance with the provisions of this law.

Article 3 The tax rate of individual income tax:

(1) For comprehensive income, the excess progressive tax rate of 3% to 45% is applicable (the tax rate table is attached);

(2) For operating income, the excess progressive tax rate of 5% to 35% shall apply (the tax rate table is attached);

(3) Income from interest, dividends and bonuses, income from property leasing, income from property transfer and accidental income shall be subject to the proportional tax rate of 20%.