1. There are two methods to calculate the water conservancy construction fund: 1. The tax basis of water conservancy construction fund is tax-free income. The water conservancy construction fund is accrued at 0. 1% of the sales revenue. Different provinces and cities have different collection ratios, such as 0.06% in Hunan Province. 0.0 1% in Zhejiang province. According to the Notice of Zhejiang Provincial Department of Finance and Zhejiang Provincial Local Taxation Bureau on Suspending the Collection of Local Water Conservancy Construction Funds from Enterprises, Institutions and Individual Operators (Zhejiang Caizong [2016] No.43), enterprises and institutions will suspend the collection from 2011(payment period).