PROVISIONAL  REGULATIONS  OF  THE  PEOPLE´S  REPUBLIC  OF

    CHINA  ONBUSINESS TAX
 
        (State Council: 13 December 1993)
 
          Whole Doc.

Article 1
     All units and individuals engaged in the  provision  of  services  asprescribed in these  Regulations  (hereinafter  referred  to  as  ´taxableservices´), the transfer of intangible assets or  the  sale  of  immovableproperties within the territory of the People´s Republic of China shall be taxpayers of Business Tax (hereinafter referred to  be  ´taxpayers´),  and shall pay Business Tax in accordance with these Regulations.
Article 2
     The taxable items and tax rates of Business Tax shall  be  determined in accordance with the attached to these Regulations.
     Any  adjustments  to  the  taxable  items  and  tax  rates  shall  be
determined by the State Council.
      The  specific  tax  rates  applicable  to   taxpayers   engaged   in entertainment businesses shall be determined by the  People´s  governments of the provinces, autonomous regions and municipalities directly under the central government within  the  range  prescribed  by  these  Regulations.
Article 3
     For taxpayers engaged  in  taxable  activities  under  different  tax items, the turnover, transfer and sales amounts (hereinafter  referred  to as ´turnover´) under  different  taxable  items  shall  be  accounted  for separately. If the turnover has not been  accounted  for  separately,  the higher tax rate shall apply.
Article 4
     For taxpayers providing  taxable  services,  transferring  intangible assets on selling immovable properties, the tax payable shall be  computed according to the turnover and the prescribed tax rates.  The  formula  for computing the tax payable is as follows:
               Tax payable = Turnover x Tax rate
     The tax payable shall be computed in Renminbi, The  turnover  of  the taxpayer settled in foreign currencies shall be  converted  into  Renminbi according to the exchange rate prevailing in the foreign exchange market.

Article 5
     The turnover of the taxpayers shall be the  total  consideration  and all other changes receivable from the payers for the provision of  taxable services transfer of intangible assets or sales of immovable properties by the taxpayers, except for the following situations:
     (1) For transportation enterprises which carry passengers or  cargoes from the territory  of  the  People´s  Republic  of  China  to  over  seas locations and trans-ship passengers or  cargoes  to  other  transportation enterprises overseas, the turnover  shall  be  the  balance  of  transport charges for the whole journey less  the  transport  charges  paid  to  the sub-contracted transportation enterprises.
     (2) For travel enterprises which organize tourist  groups  to  travel outside the territory of the People´s Republic of China  and  sub-contract to other travel enterprises overseas, the turnover shall be the balance of the tourist charges for the whole journey less the payments made to  thosesub-contracted travel enterprises.
     (3) For  the  main  contractors  in  the  construction  business  who sub-contract work to others, the turnover shall  be  the  balance  of  the total contract sum less the payments made to the sub- contractors.
     (4) For re-lending businesses, the turnover shall be the  balance  of interest on lending less the interest on borrowing.
     (5) For businesses buying and selling foreign currencies,  marketable securities and futures, the turnover shall be the balance of  the  selling prices less the buying prices.
     (6) Other situations as regulat