The cultural undertaking construction fee is a kind of fee levied on the advertising and entertainment industry in order to expand the investment channels of cultural undertakings. According to the Notice of the Ministry of Finance of State Taxation Administration of The People's Republic of China on the Policy and Collection Management of Cultural Undertakings Construction Fees in the Pilot Project of Changing Business Tax to Value-added Tax (Caishui [2016] No.25), advertising media units and outdoor advertising business units that provide advertising services within the territory of China shall pay cultural undertakings construction fees. The accounting treatment of the construction fee for cultural undertakings in advertising industry is as follows:
1, direct payment:
Borrow: taxes and surcharges-cultural construction fees
Loans: bank deposits
2. Terms after payment first:
Borrow: taxes and surcharges-cultural construction fees
Loan: taxes payable-cultural construction fee
Borrow: tax payable-cultural construction fee
Loans: bank deposits
Units that pay the construction fee for cultural undertakings shall calculate the payable amount according to the charged sales obtained from providing advertising services and the rate of 3%. The calculation formula is: amount payable = received sales? 3%。