According to Measures for the Pilot Implementation of Replacing Business Tax with VAT, enterprises and individuals who sell services, intangible assets or real estates in China are VAT taxpayers.According to Administrative Measures (Trial) on VAT Exemption for Cross-border Taxable Activities by SAT, enterprises and individuals who have cross-border taxable activities in China can be exempted from VAT in light of relevant provisions.
Loan extension contract: Loan extension contract refers to the borrower apply to the lender for defer of repayment before the agreed repayment date. If enterprises use loan extension contract or other vouchers for the application, which only contains repayment terms in accordance with the credit system provisions, the Stamp Duty is allowed to be exempted temporarily.
China’s stamp duty is levied on the legal documents executed or received in the economic activities like most countries in the world. The current regulations in respect of stamp duty are Provisional Rules of the People’s Republic of China on Stamp Duty (the " Provisional Rules ") and Provisional Rules on Stamp Duty Implementing Rules (the " Implementing Rules ").
Taxpayer is also called as tax main body who takes the responsibilities of paying tax. The taxpayers for individual income tax refer to the units or individuals who burden the direct tax obligations in accordance with the “Individual Income Tax Law of People’s Republic of China (PRC)”. (hereinafter referred to as the Tax Law).
In accordance with the Notice on the Payment Issue of Individual Income Tax by Foreign Staff Working in China (Cai Shui Zi [1980] No.189) issued by the Ministry of Finance, foreign staff who come to China will be paid by the foreign-sponsored unit, including personal wages, public expenses (postage and telecommunications expenses, office expenses, advertising expenses
Clause 1 of Article 6 is hereby amended and as follows: The taxable amount for monthly income from wages and salaries shall be the balance after deduction of RMB3,000 from the monthly income. At the sametime, the note to "Individual Income Tax Rates - Schedule 1" is also amended accordingly.
When starting a business, individual entrepreneurs often fail to understand the difference between Individual Industrial and Commercial Households, Sole Proprietorship Enterprises and One-person Limited Liability Companies, therefore are confused in choosing which form to register. This article will elaborate in details the difference in tax treatment of these three forms of business.
The full name of "small-scale taxpayer" is "small-scale taxpayer of value-added tax", corresponding to "general taxpayer". It belongs to the category of value-added tax and has nothing to do with enterprise income tax, and the criterion of classification is whether the annual taxable sales meet relevant standard. According to the latest policy, the standard for small-scale VAT taxpayers is that the VAT taxable annual sales does not exceed 5 million yuan.
VAT Small-scale Taxpayers:1) Company shall be ratified as VAT small-scale taxpayer when registration with no need for separate application; 2) The company’s annual taxable sales shall not exceed RMB5 million.
According to the latest individual income tax law of the People's Republic of China, an individual who has a domicile in China or has no domicile but has lived in China for at least 183 days in a tax year is a resident individual. An individual who has no domicile or does not live in China, or who has no domicile but has lived in China for less than 183 days in a tax year, is a non-resident individual.