The Tax System in China has undergone tremendous changes in recent years. Currently, there are 18 different types of tax imposed on a wide range of incomes and transactions. Taxpayers can be individuals, entities or economic organizations. .
1. Overview of Taxation in China
Any investors, who want to succeed in their business-doing in China, are strongly advised to better understand tax departments, tax categories, tax rate and official invoices in China. As far as China tax department is concerned, China has state tax departments: national tax department (NTD) .
Value Added Tax(VAT) RATE:0 6% 9% 13%
attach to VAT
Urban construction tax RATE:7%
educational surtax RATE:3%
Local education surtax RATE:2%
Individual Income Tax RATE: 5-45%
Enterprise Income Tax (EIT) is 25%
2. Business and Taxation in China
The China tax could be classified as follows:
Value Added Tax (VAT) at rate of 0-13%, Enterprise Income Tax (EIT) at rate of 25%, Individual Income Tax (IIT) at rate of 3-45%, Consumption Tax by customs (CT) at rate of 3-5%, Resource Tax (RT), City Maintenance and Construction Tax (CMCT) at rate of 1%, House Property Tax (HPT), Stamp Duty (ST) at rate of 0.5-1%, Urban and Township Land Use Tax (UTLU)
3. China Tax Category and rate
Tax Return should be done monthly, quarterly and annually, Tax is collected on the basis of invoice volume, in China the invoices are granted from the NTD ,
4. Tax Return
China government is stimulating its economy by encouraging export-orientated businesses; Any exporters can enjoy the export tax rebate as high as 13% according to their categories.