Corporate Tax Services in China: Crucial Facts You Should Know About
Corporate Tax Services in China
Along with its growing consumer market, there are various reasons that business owners are keeping in mind when it comes to expansion in China. This is because of its expanding and large economy, especially in e-commerce, its skilled workforce, and how beneficial is Corporate tax services China.
China’s Tax System
The State Taxation Administration is responsible for calculating and implementing the tax system in the People’s Republic of China. However, the managing and collecting of taxes are processed out locally by regional tax bureaus.
Taxes vary in specific locations and apply to certain industries, such as Free Trade Zones. For instance, the Shanghai FTZ only focuses on international finance and trade with a 9 percent to 15 percent tax rate. If you are running a completely foreign-owned enterprise, which means you are currently running a business without a local partner, here are the taxes that you have to pay:
Taxes related to profit and income:
The CIT - the tax on your income
Withholding Tax - taxes that apply to the gains of foreign-owned business currently operating in China.
Taxes related to turnover and sales:
Value Added tax - A consumption based tax
Consumption tax - Tax that are applicable to the purchases that you have made
Stamp tax - A tax on certifying legal formalities and documents
Business tax - A tax that applies to service regulations, the transfer of real estates and spectral assets
Real Estate tax - A tax which is applicable on your business property - also termed as property tax
Conclusion
The Chinese tax system gives benefits for foreign businesses, including several deductions for expenses such as training, R&D, donations, tax incentives such as exemptions, and reduced rates. These advantages can support foreign companies and cost savings with more than 100 countries. Other than this, there are also several legal services in China that you have to be curious about. And for that, you can get in touch with Innova Legal Consulting.