Dedicated to being your reliable partner in the Chinese market, helping you successfully launch your journey to success in China.
Tax
There are currently 18 types of taxes in China, namely value-added tax, consumption tax, customs duties, corporate income tax, individual income tax, property tax, deed tax, vehicle purchase tax, vehicle and vessel tax, urban maintenance and construction tax, stamp tax, land value-added tax, resource tax, cultivated land occupation tax, urban land use tax, tobacco leaf tax, environmental protection tax, and tonnage tax.
Common taxes payable by companies during operation include value-added tax, corporate income tax, surcharges, individual income tax, stamp tax, and other potentially applicable taxes.
Corporate Income Tax
Basic tax rate：The corporate income tax rate is 25%.
A 20% tax rate is applied to the portion of the annual taxable income that does not exceed RMB 3 million.
High-tech enterprises, technologically advanced service enterprises, and enterprises in specific regions are subject to a 15% tax rate.
Key integrated circuit design enterprises and software enterprises encouraged by the state, and non-resident enterprises are subject to a 10% tax rate.
Accounting Vouchers
Accounting vouchers are written proof recording the occurrence or completion of economic transactions. They are the basis for recording in ledgers and include both paper and electronic accounting vouchers.
According to the preparation procedures and uses, accounting vouchers are divided into original vouchers and bookkeeping vouchers.
Value-added tax
Small-scale taxpayers：Generally applicable rates are 3% or 5% (but under current policies, the taxable sales revenue of small-scale taxpayers that applies a 3% collection rate is taxed at a reduced rate of 1%, and this preferential policy will be extended to the end of 2027). The tax points of invoices issued by small-scale taxpayers (including special invoices and general invoices) are usually this collection rate.
The calculation method for the tax levy is：
Tax payable = Sales × Collection rate.
General taxpayers：Different value-added tax rates of 6%, 9%, 13%, or 0% are applicable. The tax points of invoices issued by general taxpayers (including special invoices and general invoices) are determined according to the specific business type and tax rate.
The calculation method for tax levy is:
Tax payable = Output tax this period - Input tax this period.
Individual income tax
The individual income tax threshold isRMB 5,000 per month，meaning that no individual income tax is payable on income below RMB 60,000 per year.
Formula for calculating individual income tax payable:
"Individual income tax payable = Taxable income × Tax rate - Quick calculation deduction"
China Office：Room 802, 803, Building 24, Tengfei Suzhou Innovation Park, No. 388, Xinping Street, SIP, Suzhou
Tel：+86 0512 6696 0106106
E-mail：enquiry@fozl.sg
Follow Us