Decoration VAT rate10% (VAT rate will be implemented before May 20181%). The collection rate of small-scale taxpayer decoration is 3%.
According to the provisions of the tax law, the turnover of business tax in the construction industry is the operating income obtained by contracting construction, repair, installation, decoration and other engineering operations, the project price (i.e. project cost) charged by construction and installation enterprises from the construction unit and various fees charged in addition to the project price (full amount = price+extra-price income).
The total price and extra-price expenses obtained from decoration services include labor costs, management fees and auxiliary materials costs. What is the invoice tax rate of the decoration company? Generally 10- 13%. According to the Notice of State Taxation Administration of The People's Republic of China City, People's Republic of China (PRC) on Issues Concerning the Collection of Individual Income Tax on Income from Individual Housing Transfer (Guo Shui Fa [2006]108No.), taxpayers should pay business tax, urban maintenance and construction tax, education surcharge, land value-added tax, stamp duty and other taxes actually paid by taxpayers when transferring houses. In addition, in addition to the above taxes and fees, the decoration fee can also be partially reduced. According to the regulations, the taxpayer can provide a unified tax invoice for the actual payment of the decoration fee, and the name of the payer listed in the invoice is the same as that of the property owner of the transferred house. The decoration expenses actually incurred before the house transfer can be deducted within the following specified proportion: 1. For purchased public housing and affordable housing, the maximum deduction limit is15% of the renovation invoice amount; 2. Commercial housing and other housing: the maximum deduction limit is 10% of the renovation invoice amount.