A withholding agent shall report and pay the tax it/he withheld to the local competent tax authorities of the place where its/his organization is located or domiciled.

Article 15 The period for the payment of business tax shall be one day, three days, five days, 10 days, 15 days, one month or one quarter. The actual payment period of a taxpayer shall be determined by the competent tax authorities according to the amount of the tax payable of the taxpayer; and tax that cannot be paid in regular periods may be paid on transaction basis.

Taxpayers that adopt one month or one quarter as a payment period shall report and pay taxes within 15 days of the end of the period. If a payment period of one day, three days, five days, 10 days or 15 days is adopted, the tax shall be prepaid within five days of the expiration of the period and reported and paid within 15 days from the first day of the following month with settlement of any balance of tax payable of the previous month.

The cut-off time for the withholding persons to release the tax shall be implemented in accordance with the above-mentioned two paragraphs.

Article 16 The collection and administration of business tax shall be conducted in accordance with the relevant provisions of the Law of the People's Republic of China on Tax Collection and Administration and the Regulations.

Article 17 The regulations shall enter into force on January 1, 2009.

Annex:

Schedule of Items and Rates of Business Tax

Tax Items Tax Rates

1. Communications & Transportation 3 percent

2. Construction 3 percent

3. Finance & Insurance 5 percent

4. Posts & Telecommunications 3 percent

5. Cultural and Sports Industry 3 percent

6. Entertainment 5 percent-20 percent

7. Service 5 percent

8. Transfer of intangible assets 5 percent

9. Sale of real estates 5 percent

Source: www.fdi.gov.cn