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China's Current Tax System - Stamp Tax
The taxpayers of Stamp Duty include any enterprise, unit, individual household business operators and other individual who executes or receives specified documents (taxable documents) listed in the Tax Law within the territory of China. According to the different types of taxable documents, taxpayers can be divided into the following six categories
China's Current Tax System - Deed Tax
Deed Tax adopts a flat rate within the range of 3%-5%. The applicable tax rate shall be determined by the people’s governments of provinces, autonomous regions and municipalities directly in accordance with the actual conditions of their respective areas within the scope prescribed in the preceding paragraph.
China's Current Tax System – Customs Duties
The consignees of import goods, the consigners of export goods and the owners of inward and outward articles are duty payers.Customs dutiable value of import and export goods shall be determined by Customs on the basis of the actual transaction value with some adjustments.
China's Current Tax System - Revenue Allocation between the Central Government and the Local Governments
The items that are collected and administered by tax authorities include: VAT, Consumption Tax, Vehicles Purchase Tax, Enterprise Income Tax, Individual Income Tax, Resource Tax, City Maintenance and Construction Tax, City and Township Land Use Tax, Farm Land Occupation Tax, Land Appreciation Tax, House Property Tax, Vehicle and Vessel Tax, Stamp Tax, Deed Tax, Environment Protection Tax, Tobacco Tax
China’s Current Tax System – Vessel Tonnage Tax
Vessel tonnage tax shall be collected on the basis of the net tonnage of a vessel and the term of the vessel tonnage certificate. Net tonnage refers to the net tonnage indicated on the vessel tonnage certificate issued by the government of the vessels of the nationality of the country or region.
Brief introduction on Tax-related Issues for Finance Lease
Finance lease is a new type of business in finance sector. It integrates finance lease and asset lease, trading and technology renovation. The credential and guarantee requirements are not strict for finance lease. The depreciation of assets that obtained by finance lease can be deducted when calculating corporate income tax, and the input VAT of the rent can be used to offset output VAT.
China Tax Administration Guide - Taxable Income
Where an enterprise with foreign investment invests in another enterprise within China, the profit (dividends) obtained from the enterprise receiving the investment may be excluded from its taxable income; however, expenses and losses incurred in the investment process may not be deducted from its taxable income.Unless otherwise stipulated by the State, the following items shall not be itemized as costs
Business Dealings between Associated Enterprises
In business transactions between an enterprise with foreign investment or the establishments or sites set up in China by a foreign enterprise for production or business operations, and its associated enterprise, the payment or receipt of charges or fees shall be made in the same way as the payment or receipt of charges or fees in business transactions between independent enterprises.
China Tax Administration Guide (6) - Calculation of Tax Liability
Income Tax already paid abroad in Article 12 of the Tax Law refers to the Income Tax actually paid outside China, by an enterprise with foreign investment, on the income received from sources within China. It does not include any tax paid but later compensated, or any tax borne by others.
Chinese Tax - Translation of Foreign Exchange Rate in China
In accordance with Accounting Law of China provision 12, RMB should be the bookkeeping base currency. If there are other currencies dominate in business operation, one of them can be the base currency for bookkeeping. But it shall exchange into RMB when compiling Accounting Financial Report. However, Chinese Tax Law and Accounting Law have different provisions on Foreign Exchange Conversion