Business tax is calculated at 5% of monthly turnover. In addition, 7% urban maintenance and construction tax and 3% education surcharge will be paid.
Business tax is a tax levied on the turnover of units and individuals that provide taxable services, transfer intangible assets or sell real estate in China. Business tax is one of the main taxes in the circulation tax system.
Urban maintenance and construction tax, referred to as urban construction tax, is a tax levied on units and individuals with operating income in order to strengthen urban maintenance and construction, expand and stabilize the source of funds for urban maintenance and construction in China.
Education surcharge is an additional tax levied on units and individuals who pay value-added tax, business tax and consumption tax in cities and counties.