Urban Maintenance and Construction Tax Law of the People's Republic of China

(Effective from the date of the founding of the People's Republic of China)

Article 1 Entities and individuals that pay value-added tax and consumption tax within the territory of the People's Republic of China are taxpayers of urban maintenance and construction tax and shall pay urban maintenance and construction tax in accordance with the provisions of this Law.

Article 2 The urban maintenance and construction tax shall be calculated on the basis of the value-added tax and consumption tax actually paid by the taxpayer in accordance with the law.

The basis for calculating the urban maintenance and construction tax shall be deducted from the value-added tax refunded at the end of the period in accordance with the regulations.

The specific method for determining the basis for calculating the urban maintenance and construction tax shall be reported to the Standing Committee of the National People's Congress for filing by the State Council in accordance with this Law and relevant tax laws and administrative regulations.

Article 3 Urban maintenance and construction tax shall not be levied on the value-added tax and consumption tax paid by imported goods or by overseas entities and individuals for the sale of labor, services and intangible assets within the country.

Article 4 The urban maintenance and construction tax rate is as follows:

(i) If the taxpayer is located in an urban area, the tax rate is 7%;

(ii) If the taxpayer is located in a county town or town, the tax rate is 5%;

(iii) If the taxpayer is not located in an urban area, county town or town, the tax rate is 1%.

The location of the taxpayer referred to in the preceding paragraph refers to the taxpayer's residence or other places related to the taxpayer's production and business activities. The specific location shall be determined by the province, autonomous region or municipality directly under the Central Government.

Article 5 The taxable amount of the urban maintenance and construction tax shall be calculated by multiplying the tax base by the specific applicable tax rate.

Article 6 In accordance with the needs of national economic and social development, the State Council may stipulate the reduction or exemption of urban maintenance and construction tax for major public infrastructure construction, special industries and groups, and major emergency response, and report it to the Standing Committee of the National People's Congress for record.

Article 7 The time when the tax obligation of urban maintenance and construction tax occurs is consistent with the time when the tax obligation of value-added tax and consumption tax occurs, and it shall be paid at the same time as value-added tax and consumption tax respectively.

Article 8 The withholding agent of the urban maintenance and construction tax shall be the units and individuals with withholding obligations for value-added tax and consumption tax, and shall withhold the urban maintenance and construction tax at the same time as withholding value-added tax and consumption tax.

Article 9 The urban maintenance and construction tax shall be collected and managed by the tax authorities in accordance with the provisions of this Law and the Law of the People's Republic of China on the Collection and Administration of Taxes.

Article 10 If taxpayers, tax authorities and their staff violate the provisions of this Law, they shall be held legally liable in accordance with the Law of the People's Republic of China on the Collection and Administration of Taxes and relevant laws and regulations.

Article 11 This Law shall take effect on the date of the founding of the People's Republic of China.