Deduction of business tax in the performance industry

Judging from the current income methods of theatrical performances, units and individuals engaged in performance business can basically be divided into three forms:

First, the performer performs in his own performance venue, and he is responsible for the ticket sales of the performance; Second, the performer rents the performance venue of other units to perform, but the performer is still responsible for selling the tickets, and pays the relevant rental, commission and other expenses to the venue provider and the broker after obtaining the ticket sales income; Third, the performer is only responsible for the performance, and the venue provider and agent are responsible for selling tickets, providing the venue and handling the relevant matters of the performance, and the performer collects the performance income from the ticket sales unit according to a certain percentage of the ticket sales revenue or the number of performances.

For the performance income obtained in the above three forms, the turnover shall be determined according to different income methods when paying business tax:

For the first method, the income obtained by the performer is the income obtained by the performer from engaging in performance business, so when calculating the business tax, the full amount of the ticket sales income shall be used as the turnover, and the performer shall pay the business tax.

In the second case, not all of the income earned by the performer is the performer's turnover, as the performer also needs to pay commissions and rentals to agents and venue providers. Commissions and rentals paid by performers are allowed to be deducted from ticket sales revenue, with the balance after deduction as turnover. It is important to note that when a performer pays a commission to a broker, if the agent is an individual, the tax payable shall be withheld by the performer.

For the third method, the income obtained by the performer is the income actually distributed by the ticket sales unit, but the tax payable is not paid directly by the performer to the tax authority, but by the ticket sales unit when paying the income of the performer, calculated and withheld the business tax according to the income of the performer, and then pays the net amount after tax deduction to the performer.

From the above situation, the taxable turnover of the performance business is the actual income of the performer.

For units and individuals performing performances, the balance of the total ticket price income or charter income minus the fees paid to the units, performance companies or agents providing the performance venue shall be the turnover. See (Guo Shui Fa No. 1994 No. 106), this article is still valid.

If a taxpayer engages in ** business (intermediary), the taxable turnover shall be the balance of all the prices and off-price expenses charged to the client after deducting the deductible part stipulated in the current tax policy. See (Guo Shui Han 2007 No. 908), which is still valid.

Therefore, the venue rent, production fee and lease fee paid by your unit to other units during the performance activities can be deducted from the taxable income of business tax. According to Article 6 of the Provisional Regulations of the People's Republic of China on Business Tax, "if a taxpayer deducts the relevant items in accordance with Article 5 of these Regulations, and the vouchers obtained do not comply with the relevant provisions of laws, administrative regulations or the relevant provisions of the competent tax authorities, the amount of the item shall not be deducted." It is stipulated that the vouchers for rent, production fees and lease fees paid to foreign units must be legal and valid, otherwise they shall not be deducted.

Notice of the Ministry of Finance and the State Administration of Taxation on Publishing Several Abolition and Invalid Business Tax Normative Documents, Cai Shui 2009 No. 61.

The balance is taxed. For details, please refer to: For a performance performed by a unit or individual, the balance of the total income minus the fees paid to the unit, performance company or agent providing the performance venue is the turnover.