Some Taxation Information You Should Know Before Registering a Company in China.
You must be very interested in the China Accounting Taxation Services Expert if you want to register a company in China. Here is a brief introduction as follows.
China Accounting Taxation Services Expert
I. Value Added Tax(VAT)
According to the various Characters of the Industry, there will be different tax rate for different tax payer types, such as:
A: General Taxpayers
when you need to do tax deduction or need VAT special invoice (增值税专用发票), or you need do China domestic sales, import or export business, you company need to be the general taxpayers (一般纳税人). The most important point is the general taxpayers’ VAT can be deducted. On the base of the current VAT, general goods and labor service tax rate could be 17%(for most products), some other is 13%, 11% or 6%. Please feel free to contact Jilian Consultants for more information about company tax.
The VAT rate of the four special industries:
- Construction industry: the VAT is 11%. The VAT of the old project and the small-scale taxpayers is 3% which is on the basis of the simple tax method.
- For the real estate industry: the VAT of that industry is 11%.
But there are some exceptional. If the landlord tries to sell the house without living for less than two years, it will collect 5% VAT in full on the base of sale amount. While, for those houses which were living more than two years, no VAT will be paid if in the real estate market.
- The service industry VAT rate is 6%.
The service industry includes consulting, management and other services.
But if it is children care service or education services which are supplied by nurseries and kindergartens, or the pension services which are supplied by the pension agency, those special part will be VAT free.
- The financial industry: 6%. The small farmers credits loans in the financial institutions, the national student loans, national debt, local government loans and the interest income on People’s Bank loans to financial institutions are VAT free.
B: Small-scale taxpayer
If you do not require for VAT special invoices, not for deduction, not for import or export business, it’s better for you to apply for the small-scale taxpayer. The VAT of the small-scale taxpayer is 3%. But the tax of the small-scale taxpayer can’t be deducted by others.
II. Corporate Income Tax
The Corporate Income Tax is charged according to business income and all other incomes in your bank account.
The income tax law decline that the statutory tax rate is 25%. The domestic enterprises are the same with the foreign-funded enterprises. The new high-tech enterprises with government support will be levied the corporate income tax by the rate of 15%. The micro company will be levied 20%. And the non-resident enterprises will be levied 20%.
III. Individual income tax
The Individual Income tax has seven different levels of monthly income. Different salary has different income tax. The tax charges from 3500 RMB for Chinese residents, and 4800 for non-Chinese residents is 4800.
IV. Custom Duty
Custom Duty is imposed on the import and export of goods
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