The taxpayers of Urban Maintenance and Construction Tax are the enterprises, units, individual household businesses and other individuals who are obliged to pay Value Added Tax and consumption Tax.

Differential rates are adopted: 7% rate for city area, 5% rate for county and township area and 1% rate for other area.

This tax is based on the actual amount of VAT, Consumption Tax paid by the taxpayers, and paid together with the two taxes mentioned above. The formula for calculating the amount of the tax payable:

Tax Payable = Tax Base * Tax Rate Applicable

a. Urban maintenance and construction tax can be reduced or exempted when the main tax has reduction or exemption generally;
b. For value-added tax and consumption tax which need to be refunded due to tax reduction and exemption, the urban maintenance and construction tax can also be refunded at the same time;
c. Imported products are not levied urban maintenance and construction tax;
d. When the value-added tax and consumption tax applicable for levy first and then return, levy first and then refund, refund immediately after levy, unless otherwise stipulated, the surcharge tax (urban maintenance and construction tax, surcharge for education) of value-added tax and consumption tax will not be returned (refunded).
e. The national major water conservancy project construction fund is exempted from urban maintenance and construction tax and surcharge for education;