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. 2011117 The Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China officially announced the pilot scheme of changing business tax into value-added tax.

2065438+May 2005, the reform plans of the last three loss-making industries of Jian 'an Real Estate, Finance and Insurance, and Life Service will be launched, and the possibility of implementation by different industries will not be ruled out. Among them, the value-added tax rate of Jian 'an real estate is tentatively set at 1 1%, and the financial insurance and life service industry is 6%. This means that after entering the second half of 20 15, China will bid farewell to business tax completely.

According to the current Provisional Regulations on Business Tax and its detailed rules for implementation, if a unit or individual donates real estate or land use rights to other units or individuals free of charge, it will be regarded as taxable. In principle, donors are required to pay business tax at a rate of 5%.

Property donations between others shall pay business tax according to law. However, if the property donated by others has reached a certain number of years and the cherry blossoms are found to be empty according to the provisions on exemption from business tax, the business tax can still be exempted. For example, individuals who donate houses that have been purchased for five years can be exempted from business tax.