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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
Impact of Interrupting Social Insurance Payment in Shenzhen
Shenzhen resident will be unable to enjoy medical benefits from the next month after stopping payment of social insurance.The accumulated payment period will be regarded as zero if stop the payment over 3 months, which also will affect the amount of hospitalization reimbursement.
FAQ after Shenzhen Social Insurance Levied by SAT
The company’s previous accounts records for wages and salaries is the minimum wage required by the city, and the remaining wages and salaries were paid by personal bank account. Is this possible after the social insurance is collected by the tax department? After the social insurance is collected by the tax department, employees’ individual income tax and social insurance data will be compared and matched in the future.
Tax-related Issues on Invoice of Different years in China
According to Regulations on the Implementation of the Enterprise Income Tax Law, the taxable income of enterprises shall be computed on an accrual basis. The income and expenses of certain period shall be recorded according to the period of rights and obligation, regardless whether the money is received or paid; The income and expenses not attributable to a certain period shall not be regarded as income and expenses of the period
Circumstances in Which Individuals No Need to Pay VAT for Providing Services
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.
China Taxation - Contracts Free of Stamp Duty
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.
Introduction to China’s Stamp Duty
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 ").
China Individual Income Tax Guide - Determination of Resident Taxpayer and Non-resident Taxpayer
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).