China Company Tax Filing/China Company Annual Return
Hotline: 86-755-82143512, Email:tannet-solution@hotmail.com
China company tax filing refers to tax return with China tax bureau. Taxation permeates business transactions in China, and a strong understanding of tax system enables foreign investors to maximize the tax efficiency of their foreign investment while ensuring full compliance with all tax laws and regulations.
Tax Catologies in China
A. China's Value added tax (VAT);
B. China's Business taxes(BT);
C. Corporate income tax or business income tax (CIT or BIT);
D. Individual income tax.
Value Added Tax
There are two types of VAT taxpayers, i.e. General VAT Taxpayer and Small-scale VAT Taxpayer. The criterion to differentiate between a General VAT Taxpayer and Small-scale VAT Taxpayer is the annual turnover. If the annual turnover of the trading company exceeds RMB 1,800,000, the trading WFOE can apply for General VAT Taxpayer status where the VAT rate is generally 17%. The calculation is based on the difference between input VAT and output VAT. The VAT rate for small-scale taxpayers is 3% and there is no tax credit on input VAT. A benefit of a small-scale trading company is that it can apply for a preferential rate of 4% VAT.
Most trading company registered in China will apply for the general VAT as it can ask for some tax refund or tax rebate from tax bureau and pay less to tax bureau, Tannet can help with the tax refund certificate registration with tax bureau and help with the monthly tax refund or tax rebate. It is very important for the trading company to qualified as general tax payer and issue 17% VAT Fapiao as many suppliers in China especially the manufaturing company will need the 17% VAT fapiao for the tax refund to save the tax.
Business Tax
Business tax ("BT") is taxable based on non-VAT revenue. This is normally service revenue. It is calculated using non-VAT revenue multiplied by the business tax rate of the related industry. The WFOE should prepare and submit the business tax return to the tax authorities. It has to make BT payment within 10 days after the end of each month. But nowadays for many sectors the business tax has converted to VAT tax to be declared with China National and local tax bureau. Usuallly the tax will issue a tax notice form after the company is registered and make the corporate to fully understand the tax types the company should take care of.
Corporate Income Tax
Corporate Income Tax ("CIT", also known as Enterprise Income Tax, "EIT") is based on the net profit of the China WFOE. The trading WFOE should prepare the Corporate Income Tax return every quarter even if its financial result shows a loss. The trading WFOE should submit the Corporate Income Tax return to the tax authorities within 10 days after the end of each quarter. CIT payment is to be made at the same time of the submission for profitable WFOEs. The tax rate of the China WFOE corporate income tax is 25% of the business net profit.
China Individual Taxes Compliance
The WFOE is the withholding tax agent responsible for calculating, withholding and submitting individual income tax ("IIT") for both local Chinese employees and expatriates. Usually it will follow up the principle of the tax levied from 3%-45% according to the monthly salary amount.
Tannet Services for China Tax Filing
1. Accounting and Bookkeeping Service;
2. Annual tax report and audit report;
3. Monthly tax filing and tax return;
4. Tax budget and tax planning;
5. Tax advisory and audit report;
6. Tax refund and tax rebate.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu , Shenzhen, China.
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