Summary
of Tax in China :
Category Of Tax
|
Type Of
Tax
|
Tax Rate
|
Tax On
Transaction
|
Value-added
tax (VAT)
Is levied
on all goods sales (except for real estate) and the services of processing,
repairing and replacing
|
17% on
most goods, sales and some services, 13% on daily necessary goods, 11%
transportation, 6% on these Services: R&D, IT, cultural and creative,
certification and consulting, international transportation, VAT exemption
possible, 0% possible; (Rates for General Taxpayer)
|
Consumption
tax
Imposed on
specific products such as tobacco, alcoholic drinks, jewellery, cosmetics,
fireworks, gasoline, diesel oil,tires, motorcycles, automobiles and luxury
articles
|
Tax rate
varies from 1% for certain cars up to 50% for certain kinds of tobacco
|
Business
tax
Is applied
on some services and the service of selling real estate properties
|
3%-20%
|
Tax On
Income
|
Corporate
income tax (CIT/EIT)
Levied on
a company’s profits from production and business operations
|
25%, 20%,
15%, 10%
|
Withholding
income tax
Applies to
income that is generated outside China
|
5%-45%
(progressive)
|
Individual
Income tax (IIT)
Levied on
base salary, incentive compensation, labour service fee,
cash allowances (food allowance, transportation allowance, per diem),contributions
to overseas insurance scheme, etc.
|
|
Tax on
resource
|
Resources
tax
Imposed on
the extraction of natural resources like natural gas, crude oil, coal, salt
|
Varying
(Measured in x RMB per ton/qm)
|
Tax on
property & property transactions
|
Land
appreciation tax
Levied on
gains from transfer and usage real rights of state – owned land and building
on it such as real estate properties
|
30-60%
|
House Duty
Applied on
owners of buildings
|
1.2% of
building residual value or 12% of the rental
|
Tax On
Transaction
|
Vehicle
and Vessel Usage License Plate Tax
Levied on
vehicle usage
|
25%,20%,15%,10%
|
Stamp Duty
Levied on
“specified economic documents” (mainly contracts)
|
0.05% –
0.1% on amount of payment, fees or receipts
|
Deed tax
Applied on
transfers of buildings or land usage rights
|
3%-5%
|
Customs
duties
|
Customs
duties
(Tariff)
Imposed on imported and exported goods
|
Big
divergence, taxes depending on CIF (cost,
insurance, freight), also depending on nature of
the good and country of origin.
|
|