IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2012 | Removal date: open ended
Still in force

FDI: Financial incentive

On 17 August 2011, the Chinese Ministry of Finance (MOF) released the Replying Letter on Approving Beijing Municipality to Levy Local Educational Surcharge ('Replying Letter", Cai Zong Han '2011' NO.57) and allowed Beijing Municipality to levy educational surcharge on foreign enterprises and individuals from the 1 January 2012. The educational surcharge rate is set at 2% of taxable amount of the investment. In accordance with the Interim Regulations of the People's Republic of China on the Collection of Education Surcharge adopted by the State Council in 1986, foreign enterprises and individuals can be exempt from educational surcharge for the purpose of promoting foreign investment.
 
On 18 October 2010, the State Council announced the "Notice on Unifying the Urban Construction and Maintenance Tax and Educational Surcharge Systems to Domestic & Foreign Enterprises and Individuals" ('Notice', Guo Fa '2010' No.35), with the purpose of unifying the tax system, spreading the tax burden more fairly, and creating an external environment for fair competition. Foreign enterprises and individuals will be levied a Construction and Maintenance Tax and Educational Surcharge. In accordance with this Notice, the MOF approved Beijing Municipality's application for levying educational surcharge on foreign enterprises and individuals in Beijing, and the favorable treatment of educational surcharge exemption for foreign enterprises and individuals in Beijing will be abolished 1 January 2012.

AFFECTED COUNTRIES

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