Notice of State Taxation Administration of The People's Republic of China, Ministry of Finance on the Policy and Collection Management of Cultural Undertaking Construction Fee in the Pilot Project of Changing Business Tax to VAT; Taxable services provided by enterprises and non-enterprise units with monthly sales of less than 20,000 yuan (paying 60,000 yuan quarterly) by small-scale VAT taxpayers are exempt from cultural undertaking construction fee.

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 Undertaking Construction Fee in the Pilot Project of Changing Business Tax to Value-added Tax; Units and individuals providing entertainment services that have not reached the value-added tax threshold shall be exempted from cultural undertaking construction fee.

Policy 3:

Notice of the Ministry of Finance on Adjusting Relevant Policies of Some Government Funds (Caishui No.46)

From July 20 19 to July 3 1 20241February 3 1 2024, the construction fee for cultural undertakings belonging to the central government will be reduced by 50% of the amount payable by the payer; For the construction fees of cultural undertakings belonging to local income, the finance departments of provinces (autonomous regions and municipalities) and the propaganda departments of party committees can reduce them within 50% of the payable amount in combination with the local economic development level and the development of propaganda and ideological and cultural undertakings.

Related instructions

(1) According to Article 7 of the Notice of the Ministry of Finance of 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.25), the taxable services provided by enterprises and non-enterprise units with monthly sales of less than 20,000 yuan (paying 60,000 yuan on a quarterly basis) for small-scale taxpayers of value-added tax are exempted from cultural construction fees.

(2) According to Article 3 of the Supplementary Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on the Policy and Collection Management of Cultural Undertakings Construction Fees in the Pilot Project of Changing Business Tax to Value-added Tax (Cai Shui [2016] No.60), the payer who fails to reach the value-added tax threshold shall be exempted from cultural undertakings construction fees.

The finance departments (bureaus) and tax bureaus of provinces, autonomous regions and municipalities directly under the Central Government shall, within the prescribed range, determine the applicable threshold in their respective regions according to the actual situation, and report to the Ministry of Finance and State Taxation Administration of The People's Republic of China for the record.