Service industry refers to the business of providing services to the society by using equipment, tools, places, information or skills. Units and individuals providing services in China are taxpayers of business tax. The scope of service business tax collection includes: agency, hotel, catering, tourism, warehousing, leasing, advertising and other service industries.
Service industry pays business tax (5% of income) and urban construction tax (7% of business tax), education surcharge (3% of business tax) and local education surcharge (2% of business tax).