Key practical points:
• The tax base is the amount of VAT and consumption tax actually paid.
• The rate varies by location: 7% in cities, 5% in towns, 1% in other areas.
• It is paid together with or following the payment of VAT and consumption tax.
• The purpose is to fund urban infrastructure and public facilities.
• Those who pay no VAT or consumption tax are not subject to this tax.
💰 Tax
City Maintenance and Construction Tax Law · Yalla China
中华人民共和国城市维护建设税法 / City Maintenance and Construction Tax Law
Enacted: 2020-08-11 ✅ Effective: 2021-09-01
📝 Overview
A surtax calculated on the actual value-added tax and consumption tax that a taxpayer pays in China, to fund city maintenance and development. It was elevated to a law effective September 2021.
This is general information only, not legal advice. For your specific case, consult a licensed lawyer.
📜 The law text / key provisions
💬 Practical reading
💬 This is a general reading/opinion for orientation — not the official legal text nor legal advice.
This tax comes automatically as a percentage on top of the VAT and consumption tax you pay, so it is part of your total tax burden. Include it in your effective tax rate according to your business location. General orientation, not legal advice.
📎 Official source
npc.gov.cn
🕒 Updated: 16 March 2026