On the tax payment during the trial operation of hotel entertainment industry

The income during the trial operation of the hotel should be declared and taxed together with the income in the normal operation month.

Hotel income is subject to 5% business tax and entertainment income is subject to 20% tax rate. The two must be considered separately. Otherwise, paying taxes at a high tax rate will be a loss. If you pay taxes at a low tax rate, it will be cheaper for the time being, but if you are found to have evaded taxes and been punished (a fine of 50% to 5 times), the loss will be even greater.