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China's Current Tax System – Tobacco Tax
Duty Payers, The enterprises who purchase tobacco leaves within the territory of China shall be the taxpayers of tobacco tax. Taxation Scope: Dried tobacco leaves, roasted tobacco leaves. Tax Rate: Tobacco tax adopt uniform tax rate of 20%. Calculation for tax payable: Tax payable= Actual payment for tobacco leaf procurement*20%
Tax-related Issues on Related Transactions in China
According to China’s Corporate Income Tax law, enterprises shall declare related transactions in the time of submitting the annual Corporate Income Tax declaration forms if they have related transactions. Enterprises can refer to below regulations to deal with the related transactions properly.
Identification and Removal of Abnormal Taxpayer in China
Abnormal taxpayer means taxpayers who proceed tax registration but fail to file and pay tax within the prescribed time limit. Taxpayers are obliged to file tax returns. The tax collection and management system will automatically identify taxpayers as abnormal if all the taxes are not declared in consecutive 3 months.
Introduction of Arm’s Length Principle in Transactions Between Affiliated Enterprises
Organization for Economic Cooperation and Development (hereinafter referred to as OECD) states in Article 9 of ‘OECD Model Tax Convention’ that ‘two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises
China Tax Issues to House Leasing
In recent years, more and more companies chose to rent houses to develop their own operation and business activities. In order to promote a healthy house leasing market, the government has successively introduced a series of policies. This article will analyze the relevant taxes involved in house leasing by different entities in accordance with the relevant preferential tax policies of Shenzhen, for Kaizen clients’ reference.
Comparison Table of China Tax Issues to House Leasing
Real estate development companies shall incorporate the rental income obtained by house leasing into the total income of the enterprise to calculate and pay enterprise income tax. The general tax rate is 25%.Companies shall incorporate the rental income obtained by house leasing into the total income of the enterprise to calculate and pay enterprise income tax. The general tax rate is 25%.
Policy of Weighted Pre-tax Deduction for Research and Development Expenses (2) - - Three Standards in the Classification of R & D Expenses
At present, there are three standards in the classification of R & D expenses: accounting, recognition of high-tech enterprises and weighted deduction of tax. Each standard is regulated by corresponding policy documents. The main purpose is to accurately calculate R&D expenses. R&D activities of an enterprise is judged by the enterprise itself according to its own production and operation situation
Policy of Weighted Pre-tax Deduction for Research and Development Expenses (1) Scope of R & D Expenses
Where the R&D expenses actually incurred by an enterprise when it conducts any R&D activity have not been included in the current loss and profit as intangible assets, another 50% of the amount of R&D expenses actually incurred in this year shall be deducted from the amount of taxable income in this year in addition to the deduction as prescribed to the extent of the amount actually incurred.
China's Current Tax System - Land Appreciation Tax
The taxpayers of Land Appreciation Tax include units and individuals who receive income from a disposal or other means of transfer with consideration of State-owned land use rights, buildings on land and their attached facilities (hereinafter referred to as transfer of real estate).Transfer of state-owned land use rights, including sale, exchange and donation;
China Tax System – Real Estate Tax
The taxpayers of real estate tax are the owners of the property rights in cities, country towns, State designated townships and industrial and mining areas, including the owner, operational and managerial unit, mortgagee, custodian or the user of the property.Real estate tax is levied on houses in n cities, country towns, State designated townships and industrial and mining areas, excluding "rural houses".