The scope of business tax collection can be summarized as: providing taxable services, transferring intangible assets and selling real estate in People's Republic of China (PRC).

Business tax collection:

1. Units or individuals that provide or accept taxable services are in China;

2. The recipient of the transferred intangible assets (excluding land use rights) is in China;

3. The land whose land use right is transferred or leased is within the territory;

4. The real estate sold or leased is in China.

Calculation method:

1. Business tax payable = taxable turnover × applicable tax rate;

2. Turnover refers to the total price and other expenses charged by taxpayers for providing taxable services, selling or renting intangible assets and selling real estate. Out-of-price charges include fees, funds, agency charges, collecting funds and other out-of-price charges of various nature;

3. The business tax rate adopts different proportional tax rates according to different industries and categories. Transportation is 3%, sale and lease of intangible assets is 5%, and sale of real estate is 5%.