Urban construction tax, education surcharge and local education surcharge are the three major capital construction taxes in China, which are mainly used for urban infrastructure construction and education development. Among them, urban construction tax is a tax set up to solve the financial pressure in the process of urbanization, with a tax rate of 7% and taxable sales as the tax basis. Education surcharge is a tax set up to support compulsory education for all, with a tax rate of 3%, and the tax basis is also taxable sales. Local Education additional tariffs is a tax established to support the development of local education, with a tax rate of 2% and taxable sales as the tax basis. The tax rates of these three infrastructures are relatively stable and have not changed much. However, it should be noted that the specific tax rate of each province, autonomous region and municipality directly under the Central Government will be different, and it is necessary to pay taxes according to local policies and regulations.
How to calculate urban construction tax, education surcharge and local education surcharge? The calculation methods of these three capital construction taxes are all based on taxable sales. The specific calculation method is: sales × tax rate = tax payable. Among them, sales refers to the sales of taxable goods or taxable services, that is, after-tax sales.
Urban construction tax, education surcharge and local education surcharge are the three major capital construction taxes in China, which have played an important supporting role in urban infrastructure construction and education development. When paying these taxes and fees, they need to be calculated according to local policies and regulations, and paid in full and on time.
Legal basis:
The sales referred to in Article 4 of the Provisional Regulations of People's Republic of China (PRC) Municipality on Urban Maintenance and Construction Tax does not include value-added tax, consumption tax and other taxes.