The water conservancy fund shall be paid according to one thousandth of the operating income. The water conservancy construction fund is a government fund dedicated to water conservancy construction, not a tax. The tax basis of water conservancy construction fund is tax-free income. Charge by the month. Enterprises, institutions and individual operators with sales income and operating income shall collect local water conservancy construction funds according to 0.6‰ of their sales income or operating income in the previous year. Monthly or quarterly.

Legal basis:

Article 1 of the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Expanding the Exemption Scope of Government Funds will expand the scope of exempting education surcharges, local education surcharges and water conservancy construction funds from taxpayers with monthly sales or turnover not exceeding 30,000 and quarterly sales or turnover not exceeding 654.38+million to taxpayers with monthly sales or turnover not exceeding 654.38+million and quarterly sales or turnover not exceeding 300,000.