Announcement of the Ministry of Finance and the State Taxation Administration on Urban Maintenance and Construction Tax Preferences That Continue to Be in Effect

Ministry of Finance  State Taxation Administration Announcement No. 27 of 2021

Urban Maintenance and Construction Tax Law of the People’s Republic of China, adopted at the 21st Meeting of the Standing Committee of the Thirteenth National People’s Congress on August 11, 2020, shall enter into force from September 1, 2021.

To implement Urban Maintenance and Construction Tax Law of the People’s Republic of China, urban maintenance and construction tax preferences that continue to be in effect after the implementation of the Law are hereby announced as follows:

1. The standard gold that is sold by members of the Gold Exchange through the Gold Exchange and is physically delivered shall be exempt from urban maintenance and construction tax. Detailed implementation shall be in accordance with the provisions of Circular of the Ministry of Finance and the State Taxation Administration on Matters With Respect to Tax Policies for Gold (Cai Shui [2002] No. 142).

2. The standard gold that is sold by the members and clients of the Shanghai Futures Exchange through the Shanghai Futures Exchange and is physically delivered and taken out of the storage shall be exempt from urban maintenance and construction tax. Detailed implementation shall be in accordance with provisions of Circular of the Ministry of Finance and the State Taxation Administration on Tax Policies with Respect to Gold Futures Trading (Cai Shui [2008] No. 5).

3. The Major National Water Conservancy Construction Fund shall be exempt from urban maintenance and construction tax. Detailed implementation shall be in accordance with the provisions of Circular of the Ministry of Finance and the State Taxation Administration on the Exemption of Urban Maintenance and Construction Tax and Education Surcharge for Major National Water Conservancy Construction Fund (Cai Shui [2010] No. 44).

4. From January 1, 2019 to December 31, 2021, small-scale VAT taxpayers are entitled to a reduction of the urban maintenance and construction tax within a range of 50 percent. Detailed implementation shall be in accordance with the provisions of Circular of the Ministry of Finance and the State Taxation Administration on Implementing the Inclusive Tax Reduction and Exemption Policies for Micro and Small Enterprises (Cai Shui [2019] No. 13).

5. From January 1, 2019 to December 31, 2021, urban maintenance and construction tax shall be reduced or exempted to support self-employed retired soldiers in starting businesses and obtaining employment. Detailed implementation shall be in accordance with the provisions of Circular of the Ministry of Finance, the State Taxation Administration and the Ministry of Veterans Affairs on Tax Policies Related to Further Supporting Self-employed Retired Soldiers in Starting Businesses and Obtaining Employment(Cai Shui [2019] No. 21).

6. From January 1, 2019 to December 31, 2025, urban maintenance and construction tax shall be reduced or exempted to support priority groups in starting businesses and obtaining employment. Detailed implementation shall be in accordance with the provisions of Circular of the Ministry of Finance, the State Taxation Administration, the Ministry of Human Resources and Social Security and the State Council Leading Group Office of Poverty Alleviation on Tax Policies Related to Further Supporting Priority Groups in Starting Business and Obtaining Employment (Cai Shui [2019] No. 22) and Announcement of the Ministry of Finance, the State Taxation Administration, the Ministry of Human Resources and Social Security and the National Administration for Rural Revitalization on Extending Certain Tax Preferences for Poverty Alleviation (Ministry of Finance State Taxation Administration Ministry of Human Resources and Social Security National Administration for Rural Revitalization Announcement No. 18 of 2021).

It is hereby announced.

Ministry of Finance State Taxation Administration

August 24, 2021

All information in this document is authentic in Chinese. English is provided for reference only. In case of any discrepancy, the Chinese version shall prevail.