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Taxation in Shenyang - Enterprise Income Tax (EIT)
The Enterprise Income Tax is computed on the basis of the taxable income which is equal to the total income earned by the taxpayers in a tax year less allowable deductions for the same tax year.
Normally, the amount of Enterprise Income Tax payable is computed on the basis of the taxable income and by applying the rate of 25%. The formula for computing the tax payable is:
Income tax payable= Taxable income × 25%
Taxation in Shenyang - Individual Income Tax (IIT)
The Individual Income Tax Law, Individual Income Tax Implementing Rules and the tax circulars issued by various levels of tax administration form the prevailing legal basis of individual income tax (IIT) in China.
PRC nationals domiciled in China are subject to tax on their worldwide income. Foreigners who reside in Shenyang for less than a year are subject to tax on heir Shenyang-sourced income. Foreigners who reside in Shenyang for at least a full year but less than five consecutive years are subject to tax on employment income derived from inside Shenyang and foreign-sourced employment income if paid or borne by PRC persons. Foreigners who reside in Shenyang for more than five consecutive years are subject to tax on their worldwide income, starting from the sixth year. Foreigners who have lived in Shenyang for more than 90 days in a tax year, or more than 183 days if they are from a country with which China has a tax treaty, are subject to tax only on their Shenyang-sourced income. Temporary visitors who spend fewer than 90 days in Shenyang, or 183 days if a tax treaty applies, are only subject to tax on employment income that is paid or borne by an establishment in Shenyang.
There are 11 categories of taxable income according to the IIT Law, including wages and salaries, business income and various other specified items of income and compensation. IIT is generally assessed on a monthly basis. The tax rates for wages and salaries are progressive and range from 5 per cent to 45 per cent, in nine tax brackets.
In general, all non-PRC nationals must register with the Chinese tax authorities as soon as they become liable to IIT. In most cases, an employer or any other person who pays taxable income to an individual tax-payer is obliged to act as a ‘withholding agent’ and is responsible for filing tax returns and remitting payments to the tax authorities on the individuals’ behalf. If there is no withholding agent, the individual is responsible for filing his or her tax return and paying the tax assessed.
Taxation in Shenyang - Consumption Tax (CT)
Consumption tax is levied on units and individuals engaged in the manufacturing, processing and importation of specific non-essential or luxury goods, such as tobacco, alcohol, cosmetics, jewellery and automobiles. Tax rates range from 3 percent to 5 percent.
The computation of Consumption Tax payable shall follow either the ad valor-em principle or quantity-based principle. Generally, the producers of taxable consumer goods are the taxpayers and the Consumption Tax shall be paid on sales of the goods by the producers. The computing formula is:
a. Tax payable =sales amount of taxable consumer goods × Applicable tax rate, or
b. Tax payable = sales volume of taxable consumer goods × Tax amount per unit
Imported taxable consumer goods to which Ad valorem method is applied in computing the tax payable shall be assessed according to the composite assessable price and the applicable rate.
Taxation in Shenyang - Resource Tax (RT)
Resource Tax applies to all units and individuals engaged in the exploitation of mineral resources or production of salt prescribed
Taxation in Shenyang - City Maintenance and Construction Tax (CMCT)
The enterprises of any nature, units, individual household businesses and other individuals (excluding enterprises with foreign investment, foreign enterprises and foreigners) who are obliged to pay Value Added Tax, consumption Tax and/or Business Tax are the taxpayers of City Maintenance and Construction Tax.
Differential rates are adopted: 7% rate for city area, 5% rate for county and township area and 1% rate for other area.
Taxation in Shenyang - House Property Tax (HPT)
House Property Tax is levied in cities, county capitals, townships and industrial and mining districts. Taxpayers are owners of house property, operational and managerial units of house property, mortgagees, custodians and users of house property.
Taxation in Shenyang - Stamp Duty (ST)
All enterprises or individuals executing or obtaining certain types of document must pay stamp duty. Such as documents include sales and purchase contracts, lease or rental contracts, loan contracts, documents relating to the transfer of property, business account books, certification of rights of licenses an other documents specified by the Ministry of Finance. Stamp duty is assessed on the contracting parties at rates ranging from 0.005 percent to 0.1 percent.
Taxation in Shenyang - Urban and Township Land Use Tax (UTLU)
Urban real estate tax applies to owners of land and buildings in urban areas, primarily FIEs. The tax is levied on the net book value of the property as determined by a local real estate appraisal committee. For an owner-occupied building, the rate is 1.2 percent a year on the building’s net book value. If the owner leases out the building, tax is levied instead at a rate of 12 percent on the rentals pan. The tax is payable in quarterly or semi annual installments, as determined by the local tax authorities.
Taxation in Shenyang - Tax Law
(1）Provisional Regulations on Value Added Tax of the People's Republic of China
(2）Provisional Regulations on Consumption Tax of the People's Republic of China
(3）Provisional Regulations on Business Tax of the People's Republic of China
(4）Provisional Regulations on Enterprise Income Tax of the People's Republic of China
(5）Individual Income Tax of the People's Republic of China
(6）Provisional Regulations on Resource Tax of the People’s Republic of China
(7）Provisional Regulations on Urban Land Use Tax of the People’s Republic of China
(8）Provisional Regulations on Stamp Tax of the People’s Republic of China
(9）Law of the People’s Republic of China on Tax Administration
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