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China's Current Tax System - Income Tax on Enterprises with Foreign Investment and Foreign Enterprises
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.
Brief Introduction on Non-deductable Expenses before Tax in 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.
China's Current Tax System - Individual Income Tax
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.
Guidance on Annual Individual Income Tax Declaration 2023 in China
On 31 January 2024, the State Taxation Administration of China (thereafter ‘SAT’) issued the “Announcement of Annual Individual Income Tax Declaration for Comprehensive Individual Income for Fiscal Year of 2023”, which provides detailed guidance for handling the annual individual income tax declaration for fiscal year of 2023.
China's Current Tax System - Resource Tax
After the reform of resource taxes on July 1, 2016, resource tax mainly adopts tax rate and only a few items adopt quantity-based method., For cash transactions and difficult to control the clay, sand, in accordance with the principle of convenient collection, still practice or cubic meters 0.1 5 yuan per ton from quantity quota duty tax;
China's Current Tax System - Urban and Township Land - Use Tax
The taxpayers of Urban and Township Land Use Tax include all enterprises, units, individual household businesses and other individuals who have land-use right (excluding enterprises with foreign investment, foreign enterprises and foreigners). The amount of tax payable is computed on the basis of the actual size of the land occupied by the taxpayers and by applying the specified applicable tax payable per unit.
China's Current Tax System - City Maintenance and Construction Tax
The taxpayers of Urban Maintenance and Construction Tax are the enterprises, units, individual household businesses and other individuals who are obliged to pay Value Added Tax and consumption Tax. Differential rates are adopted: 7% rate for city area, 5% rate for county and township area and 1% rate for other area.
China's Current Tax System - Farmland Occupation Tax
Farmland occupation tax is imposed on all state-owned or collectively owned crop-growing land, and shall apply to those who occupy garden land, forest land, grassland, land for irrigation and water conservancy, water surface for cultivation, beaches for fishery waters and other construction buildings on agricultural land or engage in non-agricultural construction.
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.