China Taxation Services
Hotline: 86-755-82143422, Email:anitayao@citilinkia.com
Tax payment methods
1) The taxpayers of the enterprise group shall be the core enterprises and other member enterprises with independent economic accounting， and all taxpayers shall pay income tax locally.
2) The income tax on some special industries and enterprises shall be handled according to the methods as below：
2.1) The income tax on the transportation enterprises （including enterprises concurrently engaged in industry） directly under the Ministry of Railways shall be paid collectively by the Ministry of Railways.
2.2) The income tax on the transportation enterprises （excluding Air China， China Eastern Airlines and China Southern Airlines which pay income tax independently） directly under the General Administration of Civil Aviation of China （GACA） shall be paid collectively by the GACA by the end of 1994.
2.3) The postal and communication enterprise （including industrial enterprises， supply and marketing enterprises） directly under the Ministry of Posts and Telecommunications shall be paid collectively by the ministry by the end of 1995.
Linkage of industrial policies
1) With respect to the industries and enterprises adopting the profit contracting system or the system of handling over contracting income， no matter whether the contracting matures or not， these industries and enterprises shall pay income tax in accordance with the Interim Regulations on Income Tax for Enterprises and the implementing rules thereof.
2) Foreign trade enterprises that have not substituted profit delivery by tax payment shall pay income tax in accordance with the Interim Regulations on Business Income Tax and the implementing rules thereof.
3) Military enterprises shall pay income tax in accordance with the Interim Regulations on Business Income Tax and the implementing rules thereof.
Two-tier preferential tax rates
The enterprises with annual taxable income no more than RMB30，000 shall pay income tax at a rate of 18% for the time being. The enterprises with annual taxable income of RMB30，000-RMB100，000 （inclusive） shall pay income tax at a rate of 27% for the time being.
Linkage of other related policies
1) Enterprises are allowed to make up for the losses occurring after January 1， 1993 in accordance with the life specified in the new tax law. The losses occurring in the previous years shall be made up according to the original life.
2) The administrative fee paid by enterprises to their competent authorities at the ratio approved by the fiscal and tax authorities is allowed to be deducted from taxable income during the Eighth Five-Year Plan period. The administrative fee saved by competent authorities may be carried forward to the next year by reducing the set-aside proportion or amount of the same year correspondingly.
3) The membership fee paid by enterprises to the associations of commerce and industry is allowed to be deducted from the taxable income. The membership fee saved by the associations of commerce and industry may be carried forward to the next year by reducing the membership fee payable of the same year.
Contact us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.