Foreign-invested enterprises, foreign enterprises and foreign individuals (including Hong Kong, Macau and Taiwan compatriots) in China's main applicable taxes, includes: corporate income tax, personal income tax, turnover taxes (including value added tax, consumption tax, business tax), land tax, stamp duty, vehicle license tax, urban real estate tax. Import and export goods are according to the relevant provisions of the Customs Tariff Regulations, pays customs duties and import VAT.
Firstly, the Corporate Income Tax:-
Foreign-invested enterprises in China as well as offices or establishments which engage in the production and operation, the foreign enterprise’s income tax shall be based on taxable income at a rate of 25%; for those foreign enterprises in China which have not set up institutions and places while profits are sources from China (dividends), interest, rents, royalties and other income should be subject to an income tax of 20%.
Secondly, the Value-added Tax:-
In China, sales of goods and the provision of processing, repair, replacement, labor and imported goods, units and individuals are VAT payers. The basic VAT rate is 17% (grain, vegetable oil, water, books, newspapers, magazines, feed, fertilizers, pesticides, farm machinery and other tax rate is 13%).
Thirdly, the Sales Tax:-
In China, to provide transportation, post and telecommunications, finance, insurance, construction, culture, sports, entertainment, services, transfer of intangible assets or the sale of real estate units and individuals are business taxpayers. All 3 types are subject to sales tax rate with a minimum rate of 3% (e.g. transport costs) to a maximum of rate of 20% (e.g. entertainment).
Fourth, Stamp Duty:-
Buying and selling in the Chinese territory, processing, contracting, property leasing, cargo transportation, warehousing, loans, property insurance, technology transfer contracts and property rights bills, business books, right, or licenses shall be fell with the provisions of stamp duty. Stamp duty of 0.5 for the extreme as a minimum and a maximum of one-thousandth. Rights or licenses and operating books (it does not include books of account containing funds) are by the piece decals, RMB 5 for each.
Fifth, Import and Export Tariffs:-
China's current average import tariff is at a rate of 12%. In addition to several important resource commodities, export tariffs, and the Chinese exports to other commodities, it does not impose export tariffs.
Sixth, Consumption Tax:-
In China, production, processing and importing of tobacco, alcohol, cosmetics, skin care and hair care products, precious jewellery and jewellery, firecrackers, fireworks, gasoline, diesel, vehicle tires, motorcycles, cars and other consumer goods units and individuals, is regarded as spending to taxpayers. Consumption tax consists of 11 items with 14 files are charged at a tax rate from the lowest one of 3% to a maximum rate of 45%. Consumption tax has been taken from the amount of fixed charge levied at the rate on the two approaches.
Seventh, the Deed:-
Transfer property in China, housing ownership, affordable units and individuals deed taxpayers. The alleged transfer of land and housing ownership means:-
(1) State-owned land use right transfer, but it does not include rural collective land contract and management rights transfer;
(2) The transfer of land use rights , including the sale, gift and exchange ;
(3) Sale of housing ;
(4) Housing grants ;
(5) Exchanges. The tax rate of a Deed is 3% -5%.
Eighth, Urban Real Estate Tax:-
Foreign-invested enterprises and foreign individuals have property rights that are required to pay city real estate tax. It is calculated at the original cost minus 10% -30%, once the balance after tax calculation is at an annual rate of 1.2%; or press the taxable rental income from rental real estate tax rate is 12%. Property tax is on an annual basis and to be paid by installments.
Ninth, Vehicle License Taxes:-
Foreign-invested enterprises own and use vehicles, ships, should be in accordance with the "People's Republic of Vehicle License Tax Regulations", the relevant provisions for payment of vehicle license tax. Trucks, motor boats and non-motorized boats should in accordance with their load or net tonnage tax, other vehicles and non-motorized vehicles are according to the number of tax.
Tenth, the Personal Income Tax:-
Have domicile in China, or non-domiciled and resident individuals for one year, derives income from inside and outside of China, should be in accordance with the "PRC Individual Income Tax Law" and its implementing regulations, to pay the personal income tax. According to the "PRC Individual Income Tax Law Implementation Regulations" provisions, Chinese individuals who have domicile is defined as the personal whose household, family, economic interests, habitually reside in China. For those has no domicile in China, more than one year but less than five years of living individuals, income derived from sources outside China by the competent tax authorities, may be in respect of the Chinese companies, enterprises and other economic organizations or individuals to pay for the part of the payment of personal income tax; for individuals live more than five years, and from the sixth year onwards, derives incomes outside from China, its total income to pay personal income tax.
In China, for those neither has domicile nor resident or non-domiciled and resident individuals for less than one year, the income derived from the Chinese territory shall in accordance with the provisions of this Act, to pay personal income tax.
For those individuals who has no domicile in China, but during a tax year, in China consecutively or accumulatively staying for not more than 90 days, their income from sources shall within China, by foreign employers, to pay and is not by the employer in China's institutions and places, the burden of the part that is exempted from paying personal income tax.
For those who obtained from the Chinese territory, the wages and salary incomes are subject to personal income tax. Taking progressive personal income tax rate for calculation, it divides into nine with a minimum of 5% and a maximum of 45%. Wage and salary incomes for those with monthly income of RMB 4,800, after deducting expenses, the balance is the taxable incomes.
Individuals in China who engage in paid labor income, royalties income, royalties, interest, dividends and bonuses, should be subjected to personal income tax.
Royalties from the proportional tax rate is 20% and should be according to tax and is payable at a reduced rate by 30%.
Perjury, the proportional tax rate is of 20%; personal time to obtain labor remuneration taxable income over RMB 20,000, belongs perjury, once it is extremely with high income. For taxable income in excess of RMB 20,000 to 50,000, part of the calculation the tax payable in accordance with the tax law. The tax liability imposed is 5%; for more than RMB 50,000 in part, to pay levy Kazunari.
Royalties, interest, dividends, bonuses, lease of property, transfer of property, incidental income and other income, are charged at the proportional tax rate of 20%.
Perjury, royalties income, royalty income, property rental income, per income does not exceed RMB 4,000 , less the cost of RMB 800; for RMB 4,000 or more, less 20% of the cost. The remaining amount is the taxable income.
Taxpayer who derives income from outside China are allowed to deduct their tax liability that has been paid for foreign personal income tax. However, the deduction shall not exceed the taxpayer under this law for foreign income tax that is payable for computing.