According to the current tax system in China, China's taxation includes turnover tax (value-added tax, consumption tax, business tax and customs duties), and income tax (foreign-invested enterprises and foreign corporate income tax, personal income tax, etc. ), property tax (real estate tax, deed tax, stamp duty, etc.), and natural resource tax.
Our professional tax staff has accumulated many years of domestic tax experience and is good at assessing the tax risks of investment plans for customers, providing tax planning and consulting that are relevant to your operating projects.
China taxes individuals who reside in the country for more than 183 days on worldwide earned income. It is administered on a progressive tax system with tax rates ranging from 3% to 45%.
- Salaries and wages income
- Business income
- Income from contracted operation and leased operation of enterprises and institutions
- Income from labour remuneration
- Manuscript income
- Income from royalties
- Interests, dividends, bonuses income
- Property lease income
- Income from property transfer
- Other income determined by the financial department of the State Council for taxation
The Corporate Income Tax in China is a standard 25% unless the company participates in strategic industry or regional promotion programs.
- Enterprises and other income-generating organizations in China
- A resident enterprise refers to an enterprise established in China, or established in other country, but the actual management organization is within China
- Non-resident enterprises refer to those established in other country and whose actual management institutions are not in China, but have established institutions or premises in China, or have not established institutions or premises in China, but there are profits derived from China
Value-added Tax applies to the sale of goods (except real estate properties), and the provision of labour services in relation to the processing of goods and repair and replacement services within China. The standard tax rate is 17% with certain necessities taxed at 13%.
Consumption Tax applies to 14 categories of consumable goods, including tobacco, alcoholic drinks, cosmetics, jewellery, fireworks, gasoline, diesel oil, tires, motorcycles, automobiles, golf equipment, yacht, luxury watch, disposable chopsticks and wooden floorboard. The tax is computed based on sales price and/or sales volume.
Real Estate Tax imposed on the owners, users or custodians of houses and buildings at the rate at either 1.2% of the original value with certain deduction or 12% of the rental value.
Customs Duties are imposed on goods imported into China and are generally assessed on the cost, insurance and freight value. The rate of duty depends on the nature and country of origin of the imported goods.
Enterprises and individuals who have signed contracts in China and received the following certificates must pay stamp duty.
- Purchase and sale, processing contract, construction project contract, property leasing, cargo transportation, warehousing and storage, loan, property insurance, technical contract
- Document of transfer of property rights
- Business books
- Housing property certificate, industrial and commercial business license, trademark registration certificate, patent certificate, land use certificate
- Other documents determined by the Ministry of Finance for taxation
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