China Business Tax Consultancy
Hotline: 86-755-82143348 Email: info@citilinkia.com
Business tax is one of most important tax in China taxation system. The following is about business tax in China, which includes the taxpayers of business tax, taxable items, and tax rates, computation of tax payable and major exemptions, hope can help people who are interested in business in China. Business tax is a tax payable against turnover by all enterprises and individuals undertaking the following business activities: providing taxable services, including communication, transport, construction, finance and insurance, telecom, culture, entertainment and service industries; transferring the provision of intangible assets; and selling immovable properties.
The change in China's business tax rules has increased the amount of tax paid by multinational service providers with clients in China, therefore service providers need to consider modifying billing arrangement with Chinese clients by charging business tax from Chinese clients or arranging for the overseas office to bill and collect the payment from their Chinese clients' international affiliates if possible, as well as separating the billing or invoices of the international office and the China office to minimize the impact of double business taxes charged.
Payable Tax formula
Tax Payable = Turnover × Tax Rate
Taxpayers
Taxpayers of Business Tax include all enterprises, units, household businesses and other individuals engaged in provision of taxable services; transfer of intangible assets or in sales of immovable properties within the territory of the People's Republic of China.
Taxable items and tax rates
Table of Business Tax Taxable Items and Rates in clued the following:
1. Communications and transportation 3%
2. Construction 3%
3. Financial and insurance businesses 8%
4. Post and tale-communication 3%
5. Culture and sports 3%
6. Entertainment 5%-20%
7. Services 5%
8. Transfer of intangible assets 5%
9. Sales of immovable properties 5%.
There are also some tax incentives to encourage or attract the foreign investors to invest in China.
Contact Us
If you have further queries, don’t hesitate to contact ATAHK anytime, anywhere by simply visiting ATAHK’s website www.3737580.net , or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to info@citilinkia.com