Feb. 22 – Over the past three years, many Chinese provinces have lowered business tax (BT) rates for enterprises operating within the entertainment industry in a move to boost entertainment consumption and the “night economy.”
According to China’s “Interim Provisions on BT (PRC State Council Decree No.540),” the entertainment industry is subject to BT rates ranging between 5 percent and 20 percent. While many entertainment businesses across the country previously faced BT rates edging towards the upper limits of that range, BT burdens have now been significantly reduced in recent years many enterprises are now subject to the minimum 5 percent BT rate.
A majority of the provinces/municipalities listed below differentiate their BT treatment to different types of entertainment businesses. In general, the golfing business is always subject to a higher BT rate, while some other enterprises (such as those in the pool and bowling business) enjoy lower BT rates.
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