Discussion on prepayment of business tax and enterprise income tax for property fees.

A 1: according to article 2 of the notice of State Taxation Administration of The People's Republic of China on several issues concerning the confirmation of enterprise income tax (Guo [2008] No.875), the service fees charged for providing repeated services to customers for a long time shall be confirmed when relevant service activities occur. Therefore, the property fees charged by the property management company should be confirmed by stages when the relevant labor activities occur according to the accrual principle.

Answer 2: According to Item (19) of Article 3 of the Notice of the Ministry of Finance of People's Republic of China (PRC) on Several Policy Issues concerning Business Tax in State Taxation Administration of The People's Republic of China (Caishui [2003] 16); Units engaged in property management shall take all income related to property management as turnover after deducting the prices of water, electricity and gas paid by the owners and those paid by the tenants. Therefore, for other fees charged, it depends on whether they fall within the above-mentioned deductible.

Therefore, business tax is not levied on the money collected, and only business tax and enterprise income tax are calculated and paid on the handling fee collected.