Generally speaking, an administrative institution is not a business unit, and its income mainly comes from financial allocation, balance allocation, administrative or service charges and external business services, which is easily mistaken for a non-tax unit. However, in fact, since the tax reform of 1994, with the promulgation and implementation of relevant tax laws and regulations, administrative institutions have become taxpayers or withholding agents of business tax, corporate income tax and personal income tax, and all of them are regarded as independent economic entities according to law.

According to Article 9 of the Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax, the units mentioned in Article 1 of the Regulations refer to enterprises, administrative units, institutions, military units, social organizations and other units. Therefore, if an administrative institution provides services stipulated in the business tax regulations, transfers intangible assets or sells real estate, it is a business tax payer and should pay business tax according to law.

Extended data:

Article 5 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Several Tax Exemption Policies for Personal Financial Commodity Trading stipulates that administrative fees and government funds that meet the following conditions are temporarily exempt from business tax:

(a) government funds approved by the State Council or the Ministry of Finance, administrative fees and government funds approved by the State Council or the provincial people's government and its financial and price departments;

(2) Financial bills uniformly printed or supervised by financial departments at or above the provincial level at the time of collection;

(3) All the money received shall be turned over to the finance.

Any administrative fees or government funds that do not meet the above three conditions at the same time and fall within the scope of business tax collection shall collect business tax according to regulations.

References:

Provisional Regulations of the People's Republic of China on Business Tax-Baidu Encyclopedia

Detailed Rules for the Implementation of the Provisional Regulations of the People's Republic of China on Business Tax-China Government Network