Jiangsu Province Clarifies Several Issues Concerning Business Tax Collection

June 27, 2013 Posted by China Briefing Reading Time: 2 minutes

Jun. 27 – Jiangsu’s Municipal Tax Bureau released the “Announcement on Clarifying Several Issues Concerning Business Tax Collection (sudishuigui [2013] No. 4, hereinafter referred to as ‘Announcement’)” on June 9, which is scheduled to take effect on August 1, 2013. Detailed information can be found below.

The Announcement has clarified several issues concerning business tax collection in Jiangsu Province, specifically:

Provision of tourism services
Where a taxpayer is engaged in the provision of tourism services, the business turnover shall be the balance of the total fees and other charges received by the taxpayer after deducting the following fees:

Accommodation fees, meal expenses, transport fees, and ticket fees paid to other entities on behalf of the tourists
Tourism fees paid to other sub-contracted tourism agencies

Moreover, other fees such as training fees and field inspection fees are not deductible.

Sales and transfer of land use rights
In the event of the transfer or sale of the assigned land use rights by an individual or an entity, the business turnover shall be the balance of the total income received by the individual or entity after deducting the original price of the land use rights.

The original price of the land use rights shall include the land transferring fees paid to the land administration department, and the transferring fees paid to the transferor.

Return of land use rights
Where a taxpayer returns the land use rights to the land-owner and presents the official documentation to the local People’s Government at the county level or above on the requisition of the land use rights, business tax shall not be levied upon the compensation fees for the land use rights and objects attached to the land (including immovable properties).

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