Table of Contents
Chapter I: General Provisions
Article 1 This Law is enacted for the purposes of regulating the collection and administration of urban maintenance and construction tax, raising funds for urban maintenance and construction, and promoting the development of urban and rural construction undertakings.
Article 2 Entities and individuals that pay value-added tax 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 the provisions of this Law.
Article 3 Urban maintenance and construction tax shall be calculated based on the amount of value-added tax and consumption tax actually paid by the taxpayer in accordance with law, and shall be paid together with value-added tax and consumption tax.
Chapter II: Tax Rates and Calculation
Article 4 The tax rates of urban maintenance and construction tax shall be as follows: (1) where the taxpayer is located in an urban area, the tax rate shall be 7%; (2) where the taxpayer is located in a county town or an organized town, the tax rate shall be 5%; and (3) where the taxpayer is located in an area other than an urban area, a county town, or an organized town, the tax rate shall be 1%. The specific applicable tax rate for a taxpayer shall be the tax rate applicable to the place where the taxpayer is located. Where a taxpayer has no fixed place of business, the tax rate applicable to the place where the tax is declared and paid shall be adopted.
Article 5 The amount of urban maintenance and construction tax payable shall be the tax base prescribed in Article 3 of this Law multiplied by the specific applicable tax rate.
Chapter III: Tax Reductions and Exemptions
Article 6 Urban maintenance and construction tax shall be exempted for any of the following circumstances: (1) where the value-added tax or consumption tax paid by a taxpayer is exempted or reduced in accordance with laws and administrative regulations; (2) where the value-added tax refunded to the taxpayer under the VAT credit refund policy; and (3) other circumstances prescribed by laws and administrative regulations for tax exemption.
Article 7 Where a taxpayer needs to reduce or be exempted from urban maintenance and construction tax under special circumstances, the matter shall be decided by the State Council.
Chapter IV: Collection Administration
Article 8 The time of tax liability, the place of tax payment, and the tax payment period for urban maintenance and construction tax shall be consistent with the relevant provisions on value-added tax and consumption tax. Urban maintenance and construction tax shall be levied by the tax authorities in accordance with this Law and the Law on the Administration of Tax Collection.
Article 9 Urban maintenance and construction tax shall be declared and paid together with value-added tax and consumption tax at the same time. Where a taxpayer declares and pays value-added tax or consumption tax, it shall simultaneously declare and pay urban maintenance and construction tax.
Article 10 Where value-added tax and consumption tax are withheld and remitted by a withholding agent, the urban maintenance and construction tax shall be withheld and remitted simultaneously. Where urban maintenance and construction tax is levied in accordance with law on imported goods, the provisions of the relevant tax laws and administrative regulations shall apply.
Chapter V: Supplementary Provisions
Article 11 The specific scope of the areas of a taxpayer’s location specified in Article 4 of this Law shall be prescribed by the State Council.
Article 12 This Law shall come into force on September 1, 2021. The Provisional Regulations of the People’s Republic of China on Urban Maintenance and Construction Tax promulgated by the State Council on February 8, 1985, shall be repealed simultaneously.
Translation note: This is an unofficial English translation for reference purposes. The original Chinese text shall prevail in all legal matters.
