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Tax Filing of Shenzhen Company

Updated:2018-12-6 11:47:28    Source:www.tannet-group.comViews:249

Tax filing of Shenzhen company is one of the legal compliance that enterprise need to abide by. According to the Chinese law, the taxpayer must file its Tax return within the prescribed time, no matter whether it has business turnover. Tax return is a record of your taxable income, calculated over the financial year, and the tax payable on that amount, which are generally prepared using forms prescribed by the tax authority. Tax filing, also called tax declaration or tax returns filing, refers to the reports filed with the relevant department containing information used to calculate the taxes and declare liability for taxation.

Taxes Applicable to Foreign Investors
There are 13 types of tax applicable to foreign investors and their establishments in China. They are: Customs Duty, Value-Added Tax (VAT), Consumption Tax (CT), Business Tax (BT), Foreign Enterprise Income Tax, Individual Income Tax (IIT), Deed Tax, Land Appreciation Tax, Resources Tax, Slaughter Tax, Stamp Duty, Urban Real Estate Tax and Vehicles & Vessels Usage License Tax. The taxes that foreign investors encounter most frequently and are thus of most concern, are turnover taxes (VAT, consumption tax and business tax), Foreign Enterprise Income Tax and IIT.

Tax Registration
Wholly Foreign-Owned Enterprises, Representative Offices Joint Ventures, and other similar business entities in China are required to register with the tax authorities within the time limit prescribed in the relevant regulations. In general, this has to be completed within 30 days after the business license is issued. Registrations have to be filed with both the State Tax Bureau and Local Tax Bureau. The consequences of late registration is a maximum penalty of RMB10,000 or even the repeal of your business license.

Upon completion of the tax registrations, the tax authorities will issue a tax registration certificate which must be renewed every year. During the registration process, you should discuss with the tax officers and confirm the basis for tax calculation and filing.

Accounting Records and Tax Reporting
In pursuance of the relevant tax regulations, accounting records and ledgers have to be set up and kept properly. Accounting and financial systems should be filed with the tax authorities within 15 days from the issuance of tax registration certificates. Failure to comply with this rule will result in a maximum penalty of up to RMB10,000.

Different taxes have different reporting periods and payment due dates. In general, Foreign Enterprise Income Tax is paid on a quarterly basis, while VAT and business tax are usually on a monthly basis and IIT is also on a monthly basis. Acceptable ways of submission differ from place to place and depends on the nature of the tax. For some locations and/or tax returns, reporting by mail is acceptable, while in others, submission must be in person. Some cities have also recently launched electronic filing.  Maximum penalty for late filing of a tax return is RMB10,000 plus 50% - 500% of the tax involved. Late payment of tax will be subject to 0.05% a day penalty for the tax owing.

According to Tannet’s experience, one of the major concerns of foreign investors in respect of their existing or planned investments in China, is taxation. Their concerns are about both tax exposure and compliance obligations. Tannet’s professional team is equipped with CPAs and competent accountancy practitioner who can help figure out your tax-related issues.

Contact Us
If you have further inquiries, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website, or calling Shenzhen hotline at 86-755-82143422 or Hong Kong hotline at 852-27826888, or emailing to You are also welcome to visit our office situated in16/F, Taiyangdao Bldg 2020,Dongmen Rd South, Luohu, Shenzhen, China.

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