The contractor has to pay taxes when he takes the project. The Chinese people and citizens have the obligation to pay taxes in accordance with the law. Income from wages, salaries, labor remuneration, royalties, business income, interest, dividends, bonuses, property lease income, property transfer income and accidental income need to be taxed according to law. Residents' individual income tax shall be calculated on a consolidated basis according to the tax year, and on a monthly or sub-item basis.
Business tax, urban construction tax, education surcharge, resource tax and stamp duty are required. The specific tax rates are: business tax is 3% of the project cost, urban construction tax and education surcharge are 7% and 3% of the business tax respectively, resource tax is 2 ‰ of the project cost, and stamp duty is 3 ‰ of the project cost. In addition, in some places, flood control funds are needed, and the amount is similar to stamp duty. The specific tax rates are set by local tax bureaus, generally not exceeding 5 ‰.
Legal basis:
Law of the People's Republic of China on the Administration of Tax Collection
Article 60 If a taxpayer commits one of the following acts, the tax authorities shall order it to make corrections within a time limit and may impose a fine of less than 2,000 yuan; If the circumstances are serious, a fine of two thousand yuan or more and ten thousand yuan or less shall be imposed:
(1) Failing to apply for tax registration, change or cancellation of registration within the prescribed time limit;
(2) Failing to set up and keep account books or keep accounting vouchers and relevant materials in accordance with regulations;
(3) Failing to submit the financial and accounting systems or financial and accounting treatment methods and accounting software to the tax authorities for reference;
(4) failing to report all its bank account numbers to the tax authorities in accordance with regulations;
(5) Failing to install or use tax control devices in accordance with regulations, or damaging or changing tax control devices without authorization. Taxpayers who fail to apply for tax registration shall be ordered by the tax authorities to make corrections within a time limit; If no correction is made within the time limit, the business license shall be revoked by the administrative department for industry and commerce upon the request of the tax authorities. Taxpayers who fail to use tax registration certificates in accordance with the provisions, or lend, alter, damage, buy, sell or forge tax registration certificates, shall be fined from 2,000 yuan to 10,000 yuan; If the circumstances are serious, a fine of not less than ten thousand yuan but not more than fifty thousand yuan shall be imposed.
Article 61 If a withholding agent fails to set up and keep the account books for withholding and collecting taxes or keep the accounting vouchers and relevant materials for withholding and collecting taxes in accordance with the provisions, the tax authorities shall order him to make corrections within a time limit and may impose a fine of less than 2,000 yuan; If the circumstances are serious, a fine of not less than two thousand yuan but not more than five thousand yuan shall be imposed.