Hainan corporate income tax filing is one of the financial services provided by Hainan Tannet. Taxes and regulations are a kind of complicated in China. Trusting an independent expert is what a company needs to avoid headaches. China’s accounting practices differ from western countries and may cause confusion among branches. Tannet’s tax and accounting practice offers cost-effective integrated and multilingual services in individual and corporate tax planning, outsourced payroll management, audit and limited review.
Taxation permeates business transactions in China, and a strong understanding of tax liabilities enables foreign investors to maximize the tax efficiency of their foreign investment while ensuring full compliance with all tax laws and regulations.
Introduction to Corporate Income Tax (CII)
Corporate income tax, which is also referred to enterprise income tax, is a tax imposed on income derived from production activities and business operations by enterprises within China and other organizations. Taxpayers of Enterprise Income Tax shall pay the Enterprise Income Tax in accordance with Enterprise Income Tax Law of the People's Republic of China, except for sole proprietorship and partnership.
CIT taxable income is calculated on an accrual basis, meaning that income items are recorded when they are earned and deductions recorded when expenses are incurred. There are two ways of calculating taxable income: the direct method and the indirect method.
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CII Rate in China
A 25% standard CIT rate is applied to resident enterprises and non-resident enterprises with income-generating establishments in China. A 10% withholding rate (temporarily reduced from 20%) is applied to China-sourced income not related to a non-resident enterprise’s establishments in China, or China income derived by non-resident enterprises without establishments in China. Small and low-profit enterprises are entitled to a reduced CIT rate of 20%, and if a taxpayer qualifies as a high-tech enterprise, a reduced CIT rate of 15% applies.
Tannet’s Tax Advisory Services
Accounting and tax issues belong to the top challenges for foreign companies operating in China. Professional advice can help you to avoid long procedures and red tape, which often lead to a time-consuming and costly handling of the matter and result in additional administrative work. With 19 years of experience in taxation and accounting services in China, Tannet offers one-stop solutions on company incorporation, accounting and tax filing along with other consulting services like payroll & HR services.
Contact Us
If you have further queries, don’t hesitate to contact Tannet anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512 or 86-755-82143181 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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