1. VAT: VAT is calculated according to project settlement, and the tax rate is 1 1%.
2. Urban construction tax: Urban construction tax is paid according to value-added tax. Urban construction tax rate: 7% if the taxpayer is located in the urban area, 5% if the taxpayer is located in the county or town, and 1% if the taxpayer is not located in the urban area, county or town.
3. Education surcharge: calculated and paid according to the value-added tax, and the tax rate is 3%.
4. Stamp duty: 0.3‰ of the contract amount of the construction and installation project.
Legal basis: People's Republic of China (PRC) Tax Collection and Management Law.
Article 1 This Law is formulated with a view to strengthening the administration of tax collection, standardizing tax collection, safeguarding national tax revenue, protecting the legitimate rights and interests of taxpayers and promoting economic and social development.
Article 2 This Law is applicable to the collection and management of various taxes collected by tax authorities according to law.
Article 3 The collection, suspension, reduction, exemption, refund and supplementary payment of taxes shall be carried out in accordance with the law. Where the State Council is authorized by law, it shall be implemented in accordance with the provisions of administrative regulations formulated by the State Council.
No organ, unit or individual may, in violation of the provisions of laws and administrative regulations, arbitrarily make decisions on tax collection, suspension, tax reduction, exemption, tax refund, overdue tax and other decisions inconsistent with tax laws and administrative regulations.
Article 4 Units and individuals that are obligated to pay taxes according to laws and administrative regulations are taxpayers.
Units and individuals that have the obligation to withhold and pay taxes according to laws and administrative regulations are withholding agents. Taxpayers and withholding agents must pay taxes, withhold and remit taxes and collect and remit taxes in accordance with the provisions of laws and administrative regulations.