Q：
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Who is the taxpayer of Urban Maintenance and Construction Tax?
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A：
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Entities and individuals who 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.
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Q：
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Does Urban Maintenance and Construction Tax arise from the VAT and consumption tax withheld and paid in China for imported goods or labour, services, and intangible assets provided by overseas entities or individuals?
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A：
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Starting from September 1, 2021, Urban Maintenance and Construction Tax will not be levied on value-added tax and consumption tax withheld and paid in China for imported goods or labour, services, and intangible assets provided by overseas entities or individuals.
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Q：
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When VAT or consumption tax is reimbursed later after paying, or refunded later after paying, or refunded at the point of paying, will the Urban Maintenance and Construction Tax paid earlier along with that VAT or consumption tax be reimbursed or refunded as well?
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A：
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In such cases, the Urban Maintenance and Construction Tax paid earlier along with that VAT or consumption tax will not be reimbursed or refunded unless governed by special regulations.
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Q：
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Different Urban Maintenance and Construction Tax rates applied to different administrative regions. When will the new tax rate come into effect when there is a change of administrative region?
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A：
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When an entity changes its registered address which results in changing of administrative region, Urban Maintenance and Construction Tax rate applicable to the new administrative region is applied to the entity at the month of the address changing completed. The entity can declare Urban Maintenance and Construction Tax at the new rate next month.
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Q：
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Are there any tax preferential policies on Urban Maintenance and Construction Tax at present?
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A：
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At present, the main tax benefits of urban maintenance and construction tax are as follows:
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Urban maintenance and construction tax is exempted for standard gold sold by gold exchange member entity through gold exchange and the gold is physically delivered.
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The urban maintenance and construction tax will be exempted for the standard gold sold by SFRX members and customers through SFRX and physically delivered out of the warehouse.
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Urban maintenance and construction tax is exempted from national major water conservancy project construction funds.
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From January 1, 2019 to December 31, 2021, small-scale VAT taxpayers are eligible for 50% deduction on urban maintenance and construction tax payables.
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From January 1, 2019 to December 31, 2021, self-employed ex-soldiers can enjoy exemption on urban maintenance and construction tax.
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From January 1, 2019 to December 31, 2025, Urban maintenance and construction tax will be exempted to encourage and boost employment of key groups.
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FAQ
