According to Individual’s Income Tax Law, Industrial and Commercial Bureau shall verify the duty-paid certificate in change registration for individual’s equity transfer. Therefore, the tax payment certificate shall be obtained before the transfer of individual’s equity.
Disabled employment security fund is a governmental fund collected from employers to support the development of undertakings for people with disabilities. The fund is collected to protect the interests of disabled people and to promote their employment, which shall be paid by the government authorities, organizations, enterprises, public institutions and private non-enterprise organizations who fail to arrange employment for disabled people according to provisions.
The State Taxation Administration of China announced a Notice on Taxation Credit Administration on 13 September 2020, which introduced four measures to optimize taxation credit management and would come into force from 1st November 2020. The new policy will loosen the evaluation criteria of taxation credit by implementing following measures
Not declare and prepay Land Value Increment Tax according to the type of real estate and tax rate in presale.Not declare and pay tax for employee welfare, reward, investment, distribution to shareholders/investors and in exchange for non-monetary assets with own products of real estate enterprises.
Chinese New Year is coming, enterprises usually hold an annual party to show gratitude to customers, boost employee morale, deepen internal communication and promote strategic sharing. For the annual party, certain tax-related risks such as venue leasing, employee’s reward, According to Chinese tax law, salary income includes salary, bonus, year-end salary raises, dividend, allowance, subsidy and other income incurred from employment.
VAT general taxpayers usually have certain tax-related risks in daily operation, they can refer to the following remind list to predict the risks in advance and proceed risk control.Enterprise concurrently engages in various business but not differentiate the mixed sales.Business scope involves various tax rates but file tax return with low tax rate for transactions of high tax rate.
Deed tax refers to the one-time tax levied on the new owner based on transaction amount in the contract for change of property rights(land, housing). Before taxpayers go through the ownership registration for land or housing, if the relevant contract or other certificate of contractual nature is not effective, invalid, cancelled or rescinded
Foreign enterprises include foreign companies, enterprises and other economic organizations which have establishments or places in China engaged in production or business operations or which, though without establishments or places in China, have income from sources within the territory of China.
According to Chinese Corporate Income Tax Law, the unverified reserves are not allowed to be deducted before calculation of CIT, which refer to all kinds of asset impairment/risk reserves that do not conform to the regulations of Minnistry of Finance of The State Council and competent tax authorities.Therefore, the bad debt reserves are not allowed to be deducted before calculation of CIT, which needs to be adjusted in Annual CIT Declaration.
Non-resident individuals: an individual who is not domiciled and does not reside in China, or who is not domiciled and has resided in China for a cumulative period of less than 183 days in a tax year shall be considered as a non-resident individual. Non-resident individuals shall pay individual income tax according to tax law on their income of wages and salaries obtained within the territory of China.