Taxation of Enterprises of Foreign Investment and Foreign Enterprises in China

Out of 16 types of taxes subject to enterprises in China, there are several types of taxes currently applicable to the enterprises of foreign investment and foreign enterprises.

1. Value Added Tax (VAT) - it is levied on basis of the value added realized in course of production, sales of commodities or provision of services.

2. Consumption Tax - it is levied on some specific consumer goods or behavior.

3. Business Tax - it is levied on services, intangible assets, or immovable properties

4. Income Tax - it is levied on the income of the enterprises with foreign investment and foreign enterprises.

5. Import and Export Custom Duty - it is levied on the import and export of goods to and from China

6. Individual Income Tax - it is tax on individuals

7. Property Tax - levied on property owners

8. Stamp Duty - it is taxed based on different kinds of contracts and business documents

9. Vehicle and Vessel License Tax - it is levied on each kind of vehicles and vessels

10. Real Property Gains Tax - it is levied on gains resulting from the direct transfer of land use rights, buildings and structures and related fixtures

11. Land-Use Right - it is levied on entities which have the right to use land in the PRC.

China provides numerous preferential treatments in foreign taxation, and has successively concluded the agreement on avoidance of double taxation on income and prevention of tax evasion with 72 countries.

Tax filing and payment in China

In China, tax filing for Business Tax and Individual Income Tax for foreign invested enterprises is done on a monthly basis while for profits tax, it should be done quarterly. Tax is levied and paid within several days after the filing.

Our services

We have experience to help our clients setting up representative offices and foreign invested enterprises in China; to apply for tax license and to do the tax filing.