- info@kaizencpa.com
- Our Office: USA - Hong Kong - Shenzhen - Shanghai - Beijing - Taiwan - Singapore - Japan - UK
+852 2341 1444(Hong Kong)
Search for anything.
Knowledge
- Home
- Knowledge
- China Taxation
Brief Introduction on Tax-related Issues for Intangible Assets in China
Intangible assets refer to identifiable non-monetary assets owned or controlled by an enterprise that have no physical form, usually including patent rights, non-patented technologies, trademark rights, copyrights, concessions, land use rights, etc. The following is a brief introduction to several tax-related issues of mixed intangible assets.
China Taxation - Brief Introduction on Deduction Items of Individual Industrial Commercial income
Individual industrial commercial defines as individuals or families who are involved in industrial and commercial activities within lawful areas, registered and recorded as law. Individuals attends in industrial and commercial activities should pay individual income tax, Actual and reasonable payment for employees as wages and salaries, allowing for deduction. Employers’ pre-tax deduction for salaries would not be allowed.
China's Current Tax System - Enterprise Income Tax
The taxpayers of Enterprise Income Tax include any enterprise and other organizations (not applicable to sole proprietorships and partnerships) which have income derived from China. Including resident enterprises and non-resident enterprises.Resident enterprises: enterprises which are established in China according to Chinese law or established in accordance with laws of foreign countries (regions) but have actual management institutions in China.
Provisions on Expenses Deductions Before Enterprise Income Tax in China
An enterprise needs to pay enterprise income tax in advance on a quarterly basis for its business and need to declare and paid the yearly income tax within five months after the completion of a tax year and carry out "more refund and less paid", that is, the tax settlement and payment.
Introduction to the Policy on Pre-tax Deduction of Research and Development Expense in China
Research and development (R&D) expenses are those paid for the activities of project research and development. The regulation of R&D expenses in China's relevant systems exists in two aspects: Accounting Standard for Business Enterprises No. 6 - Intangible Assets and the Enterprise Income Tax Law of the People's Republic of China.
China Taxation - Preferential Policy on Income Deduction for Corporate Income Tax
‘Income deduction’ refers to a preferential tax measure that allows income from certain business activities to be reduced by a certain proportion. There are 5 preferential situations listed as following: Comprehensive utilization of resources. Financial institutions provide microcredit services for farmers. Insurance enterprise provide services for planting and breeding industry
Relevant Provisions on Annual CIT Declaration for Branches in China
Collection and administration measures for consolidated tax paying enterprise are ‘consolidated calculation, hierarchical administration, local advance tax payment, consolidated settlement, fiscal allocation’. The detailed regulations are as followed:Consolidated calculation refers to the unified calculation for all the taxable income and tax payable by the head office, which include all the branches without legal personality.Hierarchical administration means that local competent
Summary of Deduction Items and Standard for CIT in China (2)
Summary of Deduction Items and Standard for CIT in China. Deduction Items:Interset expense (borrow money from individuals); Remark: Sign a loan contract, interest of loan of same type within the same period can be deducted; Provide documents to prove the transaction complies with the principle of independent transaction
Summary of Deduction Items and Standard for CIT in China (1)
Summary of Deduction Items and Standard for CIT in China. Deduction Items: Entertainment expenses; Standard of Deduction/Proportion of Limit: MIN（60%，5‰）; Remark: 60% of the acutal entertainment expense versus 5‰ of the sales revenue, the lower one is allowed to be deducted；The dividend, equity transfer income of equity investment enterprise can be calculated as sales revenue
Related Regulations on Business Entertainment Expense in China
Business entertainmnet expenses refer to the various entertainment expenses paid by enterprises for the reasonable needs for daily operation, which mainly include expenses incurred in business negotiation, product promotion, external liaison, public relations, conference reception, etc.