Corporate tax
Tax rate for resident companies |
In the term of the Law of July 1-st, 1990, the levy of companies with foreign capital, whatever is their legal status, is subjected to a single rate of levy of 33% on their international incomes, This tax is divided as follows: 30% for the national part and 3% for the local part,
In areas with particular status, companies with foreign capital which export part of their production can benefit from fiscal benefits,
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Taxe rate on long-term capital gains |
Capital gains are levied at the rate of 33%,
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System governing groups of companies and dividends paid by subsidiaries to their parent companies |
Dividends are not subjected to any withholding tax,
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Tax rate on branches |
There is no separate branch income tax .
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Income tax
Fiscal year |
The fiscal year begins on January 1-st and ends on December 31 of the same year.
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Income tax rate |
The rate is progressive from 5% to 45% and shared out on 9 brackets. It applies to the taxable monthly income:
| 0-500 RMB | 5% | | 501-2,000 RMB | 10% | | 2 001-5,000 RMB | 15% | | 5 001-20,000 RMB | 20% | | 20 001-40,000 RMB | 25% | | 40 001-60,000 RMB | 30% | | 80 001-80,000 RMB | 35% | | 80 001-100,000 RMB | 40% | | Beyond 100,000 RMB | 45% |
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Tax deductions or
other allowances |
In China there are several types of deductions and reductions applying to taxpayers, For example, single people can deduct a fixed amount of their monthly salary accounting for 800 RMB, An additional amount of 3,200 RMB can be deducted from the monthly income of the foreigners taxed in China, for a total of 4,000 RMB,
The other deductions depend on the activity and on the salary of each,
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VAT rates
Standard rates |
17% is the common rate in China,
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Reduced rates |
13% for some products (water, electricit? farm produces), 0% generally for exported goods, 4% or 6% for small-scale business.
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Other important taxes
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Name of tax |
Rate |
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Consumption tax (CT): imposed on manufacturers and importers processing 11 categories of consumable/luxury goods (cigarettes, alcohol, petrol and motor vehicles).
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Progressive rate from 3 to 45%
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Business tax (BT): imposed on various service income (communication and transportation, construction, financial and insurance, posts and telecommunications, entertainment and servicing)
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3% to 20%
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Interests and royalties are subjected to a withholding tax,
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10% of their amount, giving birth to a Belgian tax credit at the rate of 20%,
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Accounting
Introduction
The chinese financial accounting aims at:
- performing the requirements fixed for the national control
- understanding the financial situations of companies
- satisfying the necessities of the investors and the creditors
- satisfying the necessities of the directors and the employees
- strengthening internal administrative tasks.
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Obligations and publications
Companies have to produce a balance sheet and a profit and loss account.
Moreover, the Ministry of Finance publishes an some important guidelines in the
"Accounting Standards for business Enterprises ".
Certification and auditing
" The Nation's People's Congress " is the highest authority, which promulgates laws and standards of the Chinese accounting.
Professionals and representative organizations
- The Ministry of Finance.
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Export Entreprises SA ©, All rights reserved
Last modified in
January 2003
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