Promulgation Authorities： Standing Committee of the National People's Congress
Release Date： 2020.08.11
Effective Date： 2021.09.01
Doc Number： Presidential Decree No. 51
Urban Maintenance and Construction Tax Law of the People's Republic of China
Presidential Decree No. 51
The Urban Maintenance and Construction Tax Law of the People's Republic of China, adopted at the 21st Session of the Standing Committee of the 13th National People 's Congress on August 11, 2020, is hereby promulgated, effective September 1, 202(I)
Xi Jinping
President of the People's Republic of China
August 11, 2020
Urban Maintenance and Construction Tax Law of the People's Republic of China
(Adopted at the 21st Session of the Standing Committee of the 13th National People's Congress on August 11, 2020)
Article 1 All entities and individuals subject to value-added tax ("VAT") and consumption tax within the territory of the People's Republic of China shall be taxpayers of urban maintenance and construction tax and shall pay urban maintenance and construction tax in accordance with this Law.
Article 2 The calculation of urban maintenance and construction tax shall be based on the amount of value-added tax and consumption tax actually paid by taxpayers according to law.
The calculation basis of urban maintenance and construction tax shall deduct the amount of VAT refunded for the end-of-period tax credits pursuant to the provisions.
The specific measures for determining the calculation basis of urban maintenance and construction tax shall be developed by the State Council and filed with the Standing Committee of the National People's Congress for the record in accordance with this Law and other relevant laws and administrative regulations on taxation.
Article 3 The amounts of VAT and consumption tax paid for imported goods or labor services, services or intangible assets sold within the territory of China by overseas entities and individuals are not subject to urban maintenance and construction tax.
Article 4 The rates of urban maintenance and construction tax shall be as follows:
(I) 7% for taxpayers in a city;
(II) 5% for taxpayers in a county or town; and
(III) 1% for taxpayers not located in a city, county or town.
The location of a taxpayer referred to in the preceding paragraph shall mean the taxpayer's domicile or any other place related to the taxpayer's production and business activities, and the specific location shall be determined by the local province, autonomous region or centrally-administered municipality.
Article 5 The payable amount of urban maintenance and construction tax shall be computed by multiplying the tax base by the specific applicable tax rate.
Article 6 The State Council may stipulate the reduction or exemption of urban maintenance and construction tax for the construction of major public infrastructure, special industries and groups and response to major emergencies in light of national economic and social development needs, and file the same to the Standing Committee of the National People's Congress for the record.
Article 7 The time when tax liability arises for urban maintenance and construction tax shall be the same as that for VAT and consumption tax, and shall be paid simultaneously.
Article 8 The withholding agents of urban maintenance and construction tax are the entities and individuals that are obligated to withhold VAT and consumption tax, and they shall withhold urban maintenance and construction tax when withholding VAT and consumption tax.
Article 9 The collection of urban maintenance and construction tax shall be administered by taxation authorities in accordance with this Law and the Law of the People's Republic of China on the Administration of Tax Levying.
Article 10 Where taxpayers, tax authorities and their staff violate the provisions hereof, their legal liability shall be pursued in accordance with the Law of the People's Republic of China on the Administration of Tax Levying and the relevant laws and regulations.
Article 11 This Law shall come into force as of September 1, 2021, repealing simultaneously the Provisional Regulation of the People's Republic of China on Urban Maintenance and Construction Tax promulgated by the State Council on February 8, 1985.
