Education surcharge = the actual amount of value-added tax, consumption tax and business tax multiplied by 3%. All units and individuals who pay value-added tax and consumption tax are obligors to pay additional education fees. Units and individuals that levy value-added tax and consumption tax are also obligors to levy additional education fees. For agriculture and township enterprises, the township people's government shall levy additional education fees in rural areas, and shall not levy additional education fees. The documents of People's Republic of China (PRC), the State Council, Ministry of Finance and State Taxation Administration of The People's Republic of China have made it clear that foreign-invested enterprises, foreign enterprises and foreigners are subject to the current effective urban maintenance and construction tax and education surcharge. All foreign-invested enterprises, foreign enterprises and foreign taxpayers who pay value-added tax, consumption tax and business tax must pay urban maintenance and construction tax and education surcharge according to regulations.

Interim Provisions on Additional Education Fees

Article 8

The local education surcharge is managed by special funds, and the education department makes overall arrangements and puts forward the distribution plan. After the approval of the financial department at the same level, it will be used to improve the teaching facilities and school conditions of primary and secondary schools, and shall not be used for employee welfare and bonus distribution.

The education surcharge paid by the railway system, the head office of the People's Bank of China, the head office of specialized banks and insurance companies with the business tax is proposed by the State Education Commission on an annual basis and used for the weak links of basic education after approval by the Ministry of Finance.

The surcharge for education collected by local authorities is mainly reserved for local arrangements. All provinces, autonomous regions and municipalities directly under the central government may, according to the actual situation of collecting additional education fees in various places, appropriately extract a part of the amount for adjustment and balance between regions.