Jiangsu Province Clarifies Tax Collection Standards

June 10, 2013 Posted by China Briefing Reading Time: 3 minutes

Jun. 10 – Jiangsu’s Municipal Tax Bureau released the “Announcement on Tax Collection Standards (sudishuigui [2013] No.2, hereinafter referred to as the ‘Announcement’)” on May 31, which unifies the tax collection standards across the province. The Announcement includes eight types of tax collection rules, and clarifies the cost-profit ratios, tax rates of taxable income, and verified percentages in tax collection. Detailed information can be found below.

Cost-Profit Ratio

According to the Announcement, the cost-profit ratios as stipulated in Article 20 of the “Implementation Regulations for the Provisional Regulations of the People’s Republic of China on Business Tax” have been determined as the following:

Sales of immovable property: 15 percent
Other taxable activities: 5 percent

Such ratios will come into effect on July 1, 2013.

Tax Rate of Taxable Income

The tax rates of taxable income as stipulated in the Article 8 of the “Measures for Verification and Collection of Corporate Income Tax” have been determined as the following:

The tax rates of taxable income as stipulated in the Article 9 of the “Provisions on the Collection of Individual Income Tax on Investors in Sole Proprietorship Enterprises and Partnership Enterprises” have been determined as the following:

Jiangsu-Tax-Chart-2

Verified Percentage

The verified percentages as stipulated in the Article 4 of the “Circular on Issues Concerning the Reinforcement of Administration on Stamp Tax Collection” have been determined as the following:

Industrial Industry

Taxable certificate: Purchase and sales contracts
Determination of tax basis: Product sales revenue
Verified percentage: 80 percent

Commercial Industry

Taxable certificate: Purchase and sales contracts
Determination of tax basis: Product sales revenue
Verified percentage: 50 percent

Real Estate Development Industry

Taxable certificate: Documents on transferring of property rights
Determination of tax basis: Real estate business income
Verified percentage: 100 percent

Construction and Installation Industry

Taxable certificate: Contracts for construction and installation projects
Determination of tax basis: Settlement income of the projects
Verified percentage: 100 percent

Transportation Industry

Taxable certificate: Goods transportation contracts
Determination of tax basis: Settlement income of the projects
Verified percentage: 100 percent

Insurance Industry

Taxable certificate: Property insurance contracts
Determination of tax basis: Premium income
Verified percentage: 100 percent

Financial Industry

Taxable certificate: Loan contracts
Determination of tax basis: Loan amount
Verified percentage: 100 percent

The above-mentioned percentages will come into effect on July 1, 2013.

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