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Business Tax (BT) – Liability & Payment Schedule
When an enterprise has performed a service related activity, which is required to incur BT, the liability for the tax arises when payment is received.  If a prepayment is received for services to be provided, the liability arises when the service has been performed or on an accrual basis.  In certain industries such as construction, the accrual based accounting allows for the ‘completed contract method’, ‘progressive billing method’ and ‘percentage complete method’.  The payment of this tax to the State Administration of Taxation (SAT) is generally within 10 days of the close each month.  Certain large transactions however may require payment within 5 days of the liability arising.