Laws of the People's Republic of China

    Article 1  These Measures are formulated for the purpose of standardizing
the administration of the levying of construction fee for cultural
undertakings and promoting the healthy development of socialist cultural
undertakings.

    Article 2  Units and individuals paying entertainment industry and
advertising industry sales tax in accordance with the provisions of the

within the boundaries of the People's Republic of China who shall be
obligatory payers of the construction fee for cultural undertakings
(hereinafter referred to as payers) should pay the construction fee for
cultural undertakings pursuant to the provisions of these Measures.

    Article 3  The rate of the construction fee for cultural undertakings
is 3%.

    Adjustment of the rate of the construction fee for cultural undertakings
shall be determined by the State Council.

    Article 4  The amount to be paid for the construction fee for cultural
undertaking shall be calculated in accordance with the sales volume the
payer has to pay entertainemtn industry and advertising industry sales tax
and the prescribed rate. The calculation formula is:

    amount payable = sales volume of which the entertainment industry and
advertising industry sales tax is payable X 3%

    Article 5  The construction fee for cultural undertakings shall be
levied and collected simultaneously at the time of levying and collection
of the entertainment industry and advertising industry sales tax by local
tax bureaus.

    Article 6  The obligation of payment for the construction fee for
cultural undertakings occurs on the day when the payer has completed the
amount of sales revenue or obtained the vouchers for the amount of sales
revenue to be collected.

    Article 7  The time period of payment for the construction fee for
cultural undertakings shall be the same as that of payment for sales tax
by the payer, or determinded by competent tax organs in the light of the
amount payable by the payer.

    Article 8  The payer should declare and pay the construction fee for
cultural undertakings at the competent tax organ at the place of occurence
where the entertainment industry and advertising industry services are
provided.

    Article 9  The construction fee for cultural undertakings levied on and
collected from units directly under the central departments and their
subsidiary enterprises and institutions shall be handed over to the
central treasury in full; the construction fee for cultural undertakings
levied on and collected from local units and individuals shall be paid to
treasuries at the provincial level in full.

    Article 10  The construction fee for cultural undertakings shall be
integrated into fiscal budget management and special-purpose funds set
up for the construction of cultural undertakings. Specific measures for
its control and use shall be worked out separately.

    Article 11  Administration of the levying and collection of the
construction fee for cultural undertakings shall be effected pursuant to
the provisions of the State relating to the administration of the levying
and collection of sales tax and the relevant provisions of these Measures.
Specific measures shall be formulated by the State Taxation Administration.

    Article 12  The regions which have already levied and collected the
construction fee for cultural undertakings on and from the entertainment
industry and advertising industry before these Measures take effect shall
implement the provisions of these Measures as of the date of coming into
force of these Measures; a small number of areas where the rates of levying
and collection is higher than the rate of levying and collection laid down in
these Measures which need to be maintained in the light of local conditions
shall be determined by the People's Governments of the provinces, autonomous
regions and municipalities directly under the Central Government can continue
to be implemented upon submission to and approval of the State Council and
the payment shall be made to treasuries pursuant to the provisions of Article
9 of these Measures.

    Article 13  The construction fee for cultural undertakings shall be
calculated, levied and collected in pursuance of the provisions of these
Measures as of the 1997 tax year.

    Article 14  These Measures come into force as of the date of promulgation.