General taxpayers need to pay value-added tax for air-conditioning fees and heating fees charged by affiliated merchants. Applicable tax rates:1before July 7, 13%,1after July 7,1%. If there is income, it should be included in the total profit of the enterprise and pay enterprise income tax, and the applicable tax rate is 25%.

Based on:

Provisional Regulations on Value-added Tax in People's Republic of China (PRC) (Order No.538 of the State Council of the People's Republic of China) Article 1 Units and individuals that sell goods or provide processing, repair and repair services and import goods within the territory of People's Republic of China (PRC) are taxpayers of value-added tax and shall pay value-added tax in accordance with these regulations.

Article 2 VAT rate:

(1) Taxpayers selling or importing goods, except as provided in Items (2) and (3) of this Article, shall pay a tax rate of 17%.

(2) The taxpayer sells or imports the following goods at the tax rate of 13%:

……

2, tap water, heating, air conditioning, hot water, gas, liquefied petroleum gas, natural gas, biogas, residential coal products;

Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on Policies Concerning Degenerate VAT Rate (Caishui [20 17] No.37): Taxpayers sell or import the following goods, and the tax rate will degenerate from 13% to1%from July17:

People's Republic of China (PRC) Enterprise Income Tax Law (Decree No.63 of the President of the People's Republic of China)

Article 1 Within the territory of People's Republic of China (PRC), enterprises and other income-earning organizations (hereinafter referred to as enterprises) are taxpayers of enterprise income tax and shall pay enterprise income tax in accordance with the provisions of this Law.

Article 4 The enterprise income tax rate is 25%.