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What is the tax basis for urban construction tax and education surcharge?
Urban construction tax (full name: urban maintenance and construction tax) and education fees are taxed on the basis of value-added tax, business tax and consumption tax.

(1) tax rate:

The applicable tax rate in urban areas is 7%.

The applicable tax rate for counties and towns is 5%.

The applicable tax rate in other regions is 1%.

(2) Calculation formula

Urban construction tax payable = business tax (or value-added tax and consumption tax) × applicable tax rate.

educational surcharges

(1) The tax rate is 3%.

(2) Calculation formula

Education surcharge payable = business tax (or value-added tax, consumption tax) ×? 3%

In addition, there is a local education surcharge.

(1) tax rate 2%

(2) Calculation formula

Local education surcharge payable = business tax (or value-added tax, consumption tax) ×? 2%

Extended data:

Taxes and fees refer to the relevant taxes and fees that enterprises should bear in their business activities, including consumption tax, urban maintenance and construction tax, education surcharge, resource tax, property tax, urban land use tax, travel tax and stamp duty.

Accounting entry

(1) Accrual for accounting treatment first:

Borrow: taxes and surcharges

Loan: Taxes payable-consumption tax, urban maintenance and construction tax, resource tax, education surcharge and property tax, land use tax, vehicle and vessel use tax, etc.

(2) At the time of payment:

Borrow: Taxes payable-consumption tax, urban maintenance and construction tax, resource tax, education surcharge and property tax, land use tax, vehicle and vessel use tax, etc.

Loans: bank deposits

(3) Paying stamp duty

Borrow: taxes and surcharges

Loans: bank deposits

References:

Baidu encyclopedia-taxes and fees