There are many cases where urban construction tax can be reduced or exempted, which need to be analyzed in detail. According to China's tax system, urban construction tax is an additional tax, and urban construction tax is a preference set on the basis of value-added tax and consumption tax. The specific provisions are as follows:

1. When the standard gold is delivered in kind, it shall be exempted from urban construction tax. (1) According to the Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China of the Ministry of Finance on Gold Tax Policy (Caishui [2002] 142), the gold sold by members of the gold exchange through the gold exchange is exempt from urban construction tax.

(2) According to the Notice of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China of the Ministry of Finance on Tax Policies Concerning Gold Futures Trading (Caishui [2008] No.5), the standard gold sold by members of Shanghai Futures Exchange and delivered in kind at the same time is exempt from urban construction tax.

2 major water conservancy funds shall be exempted from urban construction tax. According to the Notice of State Taxation Administration of The People's Republic of China of the Ministry of Finance on Exemption of Urban Maintenance and Construction Tax and Additional Education Fee from National Major Water Conservancy Project Construction Fund (Cai Shui [2010] No.44), urban construction tax shall be exempted when the national major water conservancy project construction fund is levied.

It should be noted here that although major water conservancy funds are government funds, they also need to pay value-added tax when actually collected. Therefore, it is also the tax basis of urban construction tax.

3. Small-scale taxpayers, small-scale low-profit enterprises and individual industrial and commercial households will be levied urban construction tax by half.

According to the Announcement on Further Implementing the "Six Taxes and Two Fees" Reduction Policy for Small and Micro Enterprises (AnnouncementNo. 10 of the Ministry of Finance and State Taxation Administration of The People's Republic of China in 2022), from 1 in 2022 to 1 in 2024, small-scale taxpayers, small-scale low-profit enterprises and individual industrial and commercial households will be punished. Of course, it is not just the urban construction tax that is halved. After all, "six taxes and two fees" can enjoy this policy.

In addition, it should be noted that from April 1 day to February 3 1 day, 2022, small-scale taxpayers will be exempted from value-added tax. Therefore, during this period, urban construction tax is also exempted.

4, retired soldiers entrepreneurship and employment tax relief. According to the Notice of the Department of Retired Soldiers in State Taxation Administration of The People's Republic of China of the Ministry of Finance on Further Supporting the Tax Policies for Self-employed Retired Soldiers' Entrepreneurship and Employment (Caishui [2065438+09] No.21), retired soldiers who start their own businesses or enterprises recruit retired soldiers can enjoy the urban construction tax reduction and exemption policy.

5. Urban construction tax relief for entrepreneurial employment of key groups. According to the relevant provisions of the Notice of the State Council Poverty Alleviation Office of the Ministry of Finance and State Taxation Administration of The People's Republic of China on Further Supporting and Promoting Tax Policies for Entrepreneurial Employment of Key Groups (Caishui [2065438+09] No.22), key groups can enjoy urban construction tax reduction and exemption.

To sum up, urban construction tax can be reduced or exempted under the conditions of physical delivery standard gold, major water conservancy funds, entrepreneurial employment of retired soldiers, and entrepreneurial employment of key groups.