Policy 1: Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China, People's Republic of China (PRC) on the Policy and Collection Management of Cultural Construction Fees in the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.25).
Taxable services provided by enterprises and non-enterprise units with monthly sales of small-scale VAT taxpayers of less than 20,000 yuan (60,000 yuan paid quarterly) shall be exempted from cultural undertakings construction fees.
Policy 2: Supplementary Notice of the Ministry of Finance State Taxation Administration of The People's Republic of China on the Policy and Collection Management of Cultural Construction Fees in the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.60).
Units and individuals that provide entertainment services that have not reached the value-added tax threshold shall be exempted from cultural undertakings construction fees.
Legal basis: Interim Measures for the Administration of Collection of Construction Fees for Cultural Undertakings
Article 1 These Measures are formulated in order to standardize the collection and management of construction fees for cultural undertakings and promote the healthy development of socialist cultural undertakings.
Article 2 Units and individuals that pay business tax on entertainment and advertising in People's Republic of China (PRC) in accordance with the Provisional Regulations of the People's Republic of China on Business Tax shall pay cultural undertakings construction fees in accordance with the provisions of these Measures.
Article 3 The construction fee rate for cultural undertakings is 3%.
The adjustment of fees for cultural undertakings is decided by the State Council.
Article 4 The construction fee for cultural undertakings shall be calculated according to the turnover of business tax payable by entertainment advertising taxpayers and the prescribed tax rate. Calculation formula:
Taxable amount = business tax turnover payable by entertainment industry and advertising industry × 3%
Article 5 The construction fee for cultural undertakings shall be collected by the local taxation bureau together with the business tax on entertainment and advertising.
Article 6 The obligation to pay the construction fee for cultural undertakings occurs on the day when the payer receives the operating income or obtains the voucher for claiming the operating income.
Article 7 The time limit for paying the construction fee for cultural undertakings is the same as that for taxpayers to pay business tax, and may also be determined by the competent tax authorities according to the tax payable of taxpayers.