Related Tax Policies in the Hotel Industry
(a) Tax Policies on Accommodation and Catering Business
Accommodation and catering belong to the "service industry", which are the two main businesses of hotels. Accommodation and catering belong to the "service industry" and are the two main businesses of the hotel, which belong to the scope of business tax and the business tax rate is 5%. According to the "State Administration of Taxation on the issuance of & lt; business tax tax annotations (draft for trial implementation) & gt; notice" (State Taxation [1993] No. 149): the hotel industry, refers to the business of providing accommodation services. Catering industry, refers to the business of providing customers with food and beverage consumption services through the provision of both food and beverage and eating places.
Hotels, while providing catering, retail cigarettes, alcohol and daily necessities for the convenience of travelers and expansion of business, or set up a separate store to sell food and other goods to the outside world. Retail goods belong to the scope of value-added tax, the hotel to the service industry as the main business, whether to pay value-added tax or business tax, should be based on its business behavior, to determine whether it is mixed sales or part-time behavior. According to the Circular of the State Administration of Taxation on the Issues of Transfer Tax on Catering Industry (Guo Shui Fa [1996] No. 202):
1. Catering establishments, restaurants (halls), hotels (homes), hotels, restaurants, etc., which belong to the "catering" taxable act of business tax and at the same time sell the goods to the customers, regardless of whether the customers consume the goods on the spot or not, the goods are sold to the customers at the same time. Whether or not the customer is on-site consumption, the goods part of the income should be incorporated into the business tax taxable income to collect business tax. For example, McDonald's, KFC sales of food can be consumed on-site, but also allowed to pack and take away, the income from this sales method of sales tax, not value-added tax.
2. According to the "State Administration of Taxation on the burned cooked food on the issue of turnover tax reply" (State Taxation Letter [1996] No. 261), the catering industry such as eating establishments, restaurants and other catering businesses burned cooked food behavior, regardless of whether the consumer is consumed at the scene, should be levied on business tax.
3. Catering establishments, restaurants (halls), hotels (homes), hotels, restaurants and other units attached to the store, outlets and other external sales of goods, is still in accordance with the "Provisional Regulations for the Implementation of Value-added Tax Regulations", Article 6 and the "Provisional Regulations for the Implementation of Business Tax Regulations", Article 6 of the provisions on the taxation of part-time business behavior to collect value-added tax.
4. Individual operators and other individuals who specialize in the production or sale of goods (including cooked food products) shall be subject to value-added tax. Value-added tax shall be levied on the sale of cooked food products in factories, shopping malls and other units specializing in the production or sale of food products.
(2) Tax policy for hotels operating entertainment business
High-end hotels do not only provide catering and accommodation services, but also provide entertainment consumption, giving travelers a higher level of enjoyment. The business tax rate of entertainment industry is the highest among the business tax, and it is very important for hotels to accurately distinguish the entertainment industry and account for it separately when paying taxes. According to the "State Administration of Taxation on the issuance of & lt; business tax tax annotations (draft for trial implementation) & gt; notice" (State Taxation [1993] No. 149), the entertainment industry, refers to the business of providing venues and services for entertainment activities. The scope of the levy includes: the operation of opera houses, dance halls, karaoke halls, music cafes, billiards, golf, bowling alleys, amusement parks and other entertainment venues, as well as entertainment venues to provide services for customers to carry out entertainment activities.
1. Tax treatment of song and dance services provided by catering service establishments:
According to the "State Administration of Taxation on the issuance of <Business Tax Item Notes (Trial Draft)> Notice" (Guo Shui Fa [1993] No. 149), restaurants, cafeterias and other catering service establishments, for the customers in the form of self-entertainment at the same time as the meal of song and dance activities provided by the service, according to "Entertainment", the service is provided in the form of "Entertainment". The services provided by restaurants, cafeterias and other food service establishments for customers to enjoy themselves while dining are taxed under the tax item of "Entertainment Industry".
2. Taxable turnover of entertainment industry:
According to the "Provisional Regulations on Business Tax of the People's Republic of China" and the Document No. 149 of the State Administration of Taxation [1993], the taxable turnover of the entertainment industry is the fees charged to the customers, including the ticket fee, the table fee, the fee of song, the fee of cigarettes, wine and beverages and the income obtained from the food and beverage services provided by the places of entertainment for the customers to carry out the entertainment activities and various other services. The taxable turnover of the entertainment center is the income from the various fees charged to customers, including ticket fees, song fees, tobacco, alcohol and beverage fees, as well as food and beverage services provided by the entertainment center for customers to carry out entertainment activities and other services.
3. Business tax rate of entertainment industry:
According to the Provisional Regulations on Business Tax of the People's Republic of China, the entertainment industry is subject to a tax rate of 5% to 20%, and the specific tax rate applicable to taxpayers' operation of the entertainment industry is decided by the people's governments of the provinces, autonomous regions and municipalities directly under the central government within the range stipulated in the Regulations. However, the State Administration of Taxation (SAT) has specific regulations on the business tax rate for the following entertainment items:
(1) Billiards and bowling are subject to a reduced business tax rate of 5%, and the tax item still belongs to "entertainment industry". (According to Cai Shui [2004] No. 97)
(2) The scope of the entertainment industry, which is subject to business tax at a rate of 20%, includes: concert halls, dance halls, karaoke halls (including nightclubs, karaoke lounges and karaoke studios), music cafes (including pubs), billiards, golf, bowling, and amusement parks (e.g., shooting, hunting, horseback riding, amusement rides, bungee jumping, karting, ballooning, powered parachutes, archery, darts, and so on), archery, darts, etc.) (According to Cai Shui [2001] No. 73, Cai Shui [2001] No. 145)
(C) hotel leasing, contracting and other tax policies
Large hotels often lease or contract part of their business (assets) to others to operate, such as shopping malls, beauty care, fitness, entertainment and even restaurants, which saves the hotels a sum of money in operating expenses, but also brings considerable revenues and lowers the Business Risk Reduction. According to the "Notes on Business Tax Items (Trial Draft)" (Guoshuifa [1993] No. 149), leasing business, refers to the business of transferring sites, houses, articles, equipment or facilities to others for use within an agreed period of time. However, it does not include financial leasing. The business tax rate of "leasing industry" is 5%.
1. Hotels, hotels operating conference center tax treatment:
Enterprises or individuals in hotels, hotels, conference halls to hold meetings, training, celebrations and other activities, hotels, hotels, and provide conference services, this operation is "other services", different from the leasing behavior. Whether "leasing", or "other services", the business tax rate is 5%, but the payment of property tax (foreign enterprises to pay urban real estate tax) has a difference, if divided into rental, you need to pay property tax. The property tax is paid on the property of the distinction between self-use and the rental part, respectively, from the price and from the rental of the property tax.
2. Tax treatment of hotel property rights management:
The State Administration of Taxation issued the "Reply on the Taxation of Owners of Hotel Property Rights Management" (Guo Shui Han [2006] No. 478), which stipulates that the owner of the hotel property rights management will provide the right to use the property and the hotel for the cooperative operation within the agreed period of time, and the owner will make a fixed income and dividend income in accordance with the agreement if the property rights are not attributed to the new economic entity. Obtained fixed income and dividend income should be regarded as rental income, should be in accordance with the "service industry - leasing industry" business tax, but also in accordance with the property leasing income tax levied on personal income tax.
3. Hotel rental business tax obligations:
According to the "Ministry of Finance
Security Administration of Taxation on the business tax on a number of policy issues notice" (Cai Shui [2003] No. 16), the two sides signed a contract, leasing contract (agreement) will be the enterprise or part of the assets of the enterprise contract, lease, contract, lease, contract, leasing party to the contracting party, leasing party to collect the Contracting fees and leasing fees (rental fees) collected by the contractor or lessor from the contractor or lessee are subject to business tax under the tax item of "service industry". If the contracting fee charged by the contracting party meets the following three conditions at the same time, it belongs to the internal distribution behavior of the enterprise and is not subject to business tax:
The contracting party operates externally in the name of the contracting party, and the contracting party bears the related legal responsibility;
The business income and expenditure of the contracting party are all included in the contracting party's financial and accounting accounting;
The distribution of the interests between the contracting party and the contracting party is based on the profit of the contracting party. The profit of the contractor and the contractor is based on the profit of the contractor.
(D) Tax policies for hotel-operated shopping malls and sales of moon cakes
Hotel-operated shopping malls and production of moon cakes for external sales shall be subject to value-added tax (VAT), which shall be payable in accordance with the Circular of the State Administration of Taxation on the Collection of Turnover Tax on the Food and Beverage Industry (Guoshuifa [1996] No. 202), which states that food and beverage establishments, restaurants (halls), hotels (homes), guesthouses, hotels, etc. with attached store departments, outlets, etc. selling goods externally, shall be subject to VAT. The sale of goods to the outside world belongs to part-time business behavior and VAT is levied according to the regulations.
(V) Tax Policy on Transportation Services Provided by Hotels
Most hotels usually have their own fleet of vehicles to provide transportation services to tourists. Whether or not business tax should be levied at a rate of 3% under the "Transportation Industry" tax item requires certain conditions to be met.
According to the "Notes on Business Tax Items (Trial Draft)" (Guoshuifa [1993] No. 149), the transportation industry refers to the business activity of using means of transportation or human or animal power to deliver goods or passengers to their destinations, so that their spatial locations can be transferred.
According to the Implementing Rules of Provisional Regulations on Business Tax and the Circular of the State Administration of Taxation on Certain Taxation Issues of Business Tax (Guoshuifa [1994] No. 159), a unit that has the following conditions is a unit engaged in transportation and is liable to pay business tax:
1. It utilizes the means of transportation, engages in the business of transportation, and obtains the income from transportation;
2. It has a bank account with a bank account with an account with a bank for the business of transporting goods or passengers to their destinations. p> 2, in the bank has opened a settlement account;
3, in the financial calculation of business income, business expenses, operating profit.
In addition, the business scope of the business license should be transport business, and obtain the road transport business license issued by the traffic management department.
Taxation of parking lot fees: hotels generally have parking lots to provide vehicle storage business, should be "service industry - warehousing industry" applicable 5% tax rate to pay business tax. According to the "State Administration of Taxation on the issuance of & lt; Business Tax Notes (Trial Draft) & gt; notice" (State Taxation [1993] No. 149), warehousing refers to the use of warehouses, yards, or other places on behalf of the customer storage, storage and storage of goods business.
(F) hotel business agent business tax policy
The hotel on behalf of customers to book air tickets, train tickets, as well as the agent of telecommunications services and other services, should be based on the "service industry - agency business" to pay business tax, the tax rate of 5%. According to the "State Administration of Taxation on the issuance of < business tax tax annotations (draft for trial implementation) > notice" (State Taxation [1993] No. 149), the agency industry, refers to the commissioner to handle the entrusted matters of the business, including the purchase of goods on behalf of the sale of goods, on behalf of the import and export, the introduction of services, other agency services.
According to the Circular of the State Administration of Taxation on Certain Issues of Business Tax (Guo Shui Fa [1995] No. 76), the turnover of the agency industry is the remuneration actually received by the taxpayer from the principal for engaging in the agency business.
According to the "Reply of the State Administration of Taxation on the Issues of Business Taxation on the Operation of Telecommunication Businesses of Foreign-Invested Hotels, Commercial Buildings, etc." (Guoshuifa [1998] No. 737), the income from the operation of telecommunication businesses of foreign-invested hotels, restaurants, commercial buildings, etc., is subject to the "agency business" in the "services" tariff item, and the "agency business" in the "services" tariff item. The business tax is levied according to the item of "agency industry" in the tax item of "service industry". Its turnover is the balance of all prices and out-of-prices charges collected from users minus the management fees and telephone charges paid to the postal and telecommunication departments.
(VII) hotel accounting for part-time behavior of the tax treatment
Hotel enterprises part-time many projects to collect business tax is the main, and the tax rate varies, and some even incurred value-added tax obligations. There are mixed sales and part-time behavior. The key to determining its business tax liability is the accounting problem, the tax law has strict provisions on accounting. According to the "People's Republic of China *** and the State Provisional Regulations on Business Tax" stipulates:
1, taxpayers with different taxable behavior, should be accounted for the different tax purposes of the turnover, transfers, sales; not accounted for the turnover, from the higher applicable tax rate.
2, taxpayers operating both tax exemptions, tax reductions, tax exemptions, tax reductions should be separately accounted for the turnover of the project; not separately accounted for the turnover, shall not be exempted from tax, tax reductions.
3. According to Article 6 of the Rules for the Implementation of the Provisional Regulations on Value-added Tax of the People's Republic of China, a taxpayer who sells goods, provides value-added tax (VAT) taxable services, and also operates business tax (BT) taxable services shall account for the sales of the goods or VAT taxable services and BT taxable services separately. If the sales are not separately accounted for or cannot be accurately accounted for, the value-added tax shall be levied together.
The above mentioned is mainly for the hotel industry's main business situation of the basic tax items, in addition to this, the hotel enterprises are also involved in other tax obligations, such as enterprise income tax, withholding and payment of personal income tax on behalf of employees, stamp duty, urban maintenance and construction tax and education surcharges (domestic), property tax (foreign investment to pay the urban real estate tax), urban land use tax (domestic), and so on, and the tax involved in the The tax treatment is basically the same as other industries.