There is one exception: if the value-added tax exempted in the current period has been formally approved by the State Administration of Taxation, additional tax shall be calculated and paid. Additional taxes and fees are urban maintenance and construction tax, education surcharge and local education surcharge respectively. The taxes (fees) of these additional taxes and fees are based on the actually paid value-added tax. As the value-added tax is exempted, the additional tax (fee) will be automatically reduced.

Article 1 of the Notice of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on Additional Policies for Urban Maintenance and Construction Tax and Education Fee after Export Goods of Production Enterprises are Exempted from Tax Refund (Caishui [2005] No.25) stipulates that the existing value-added tax exempted by the State Taxation Bureau shall be included in the additional scope of urban maintenance and construction tax and education fee, and urban maintenance and construction tax and education fee surcharge shall be levied respectively according to the prescribed tax (fee) rate.

Although some manufacturers of export tax rebates have not actually paid the value-added tax, they still need to pay their tax-free urban maintenance and construction tax and education surcharge according to the provisions of Caishui [2005] No.25 document. This is a special provision of urban maintenance and construction tax and education fee.

Extended data:

In order to raise funds for urban and rural maintenance and construction and expand the sources of local education funds, the State Council promulgated the Provisional Regulations on Urban Maintenance and Construction Tax in People's Republic of China (PRC) and the Interim Provisions on Additional Collection of Education Fees in 1985 and 1986 respectively. Urban maintenance and construction tax and education fee are added with the actual tax paid according to value-added tax, consumption tax and business tax (before product tax, value-added tax and business tax 1994). The urban maintenance and construction tax is levied at the three tax rates of 7%, 5% and 1% respectively in the urban area, county (town) and other areas where the taxpayer is located, and the education surcharge is currently levied at the unified tax rate of 3%.

With the deepening of China's reform and opening up, this tax and fee system is increasingly inconsistent with the requirements of fair competition in the market economy, leading to increasingly prominent contradictions, and the voices of all sectors of society demanding the unification of tax and fee systems for domestic and foreign-funded enterprises are getting stronger and stronger.

1993 issued the Notice of the State Council on Approving the Implementation Plan of Industrial and Commercial Tax System Reform in State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) (Guo Fa [1993] No.90), stating that "foreign-funded enterprises that do not pay urban construction tax now should also become urban construction tax taxpayers"; The Central Committee of the Communist Party of China's Decision on Perfecting the Socialist Market Economic System adopted by the Third Plenary Session of the 16th CPC Central Committee.

The Outline of the Eleventh Five-Year Plan for National Economic and Social Development of the People's Republic of China puts forward "unifying the tax system of various enterprises"; The government work reports of the State Council in 2009 and 20 10 and the Opinions of the National Development and Reform Commission on Deepening Economic System Reform in 20 10 approved by the State Council in May 20 10 clearly put forward that the additional system of urban construction tax and education fees for domestic and foreign-funded enterprises and individuals should be unified.

Unifying the tax system of various enterprises is an inevitable requirement for fair tax burden and promoting fair competition. With the development of China's economy and society and the continuous improvement of the market economy system, it is ripe to unify the urban maintenance and construction tax and education surcharge system of domestic and foreign-funded enterprises.

Since 2009, in order to cope with the impact of the international financial crisis and achieve the goal of "maintaining growth", China has implemented a series of structural tax reduction policies, including enterprise income tax reform, value-added tax transformation, increasing export tax rebate rate, raising personal income tax expense deduction standard, and reducing the stamp duty rate of securities transactions.

According to estimates, the total scale of tax reduction in 2009 was about 500 billion yuan, which significantly reduced the burden on enterprises and enhanced economic vitality. At present, China's economy continues to pick up, which provides favorable conditions for domestic and foreign-funded enterprises to smoothly implement the unified urban maintenance and construction tax and education surcharge system.

References:

Notice-China government network

Answers to two questions about taxes and fees-China government network