Before establishing the company and the priorities, we suggest you get in touch with our company formation agents in China and ask for support in incorporation and tax matters. Our team can assist you in the process of registering for taxation in China.
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What types of tax services can you offer to foreign clients?
Our consultants are specialized in a wide range of tax matters that can be necessary for our foreign clients. Some of our services are:
- tax registration for businesses;
- registration as a tax payer (natural person) in China;
- tax filling;
- VAT registration, VAT refunds;
- tax registration services in Guangzhou.
What are the fees charged for your tax services?
In the list below, we invite you to discover some of the fees we currently charge (for a more detailed presentation, you can always address us):
- company tax activation – USD 250;
- general tax payer application – USD 550;
- tax filling services – USD 200/month;
- application for VAT refund – USD 280;
- VAT refund recording service – USD 400.
What is the corporate tax rate in China?
The corporate tax in China is applied at a rate of 25%. This is the standard rate, but the Chinese tax law prescribes lower tax rates, applicable in certain situations and for certain business activities. In the list below, our consultantspresent the other corporate tax rates companies can be taxed with:
- 15% for high tech enterprises who can qualify for the reduced tax in certain conditions, and it is also charged to qualified technology-based services enterprises;
- 10% for certain software enterprises and integrated circuits design enterprises;
- 5% for qualified small companies that have an annual taxable income of up to CNY 3 million.
What is the VAT tax rate in China?
The standard VAT in China is set at 13%. The country also offers reduced VAT rates, as follows:
- 9% for construction services, transportation services, newspapers, books, catering, etc.;
- 6% for companies operating in the financial sector, IT, search and development, etc.;
- 5% for the sale of property that has been owned by individuals for a period of less than 2 years;
- 3% for entities operating in education, public transportation services, cultural services, etc.
What is the withholding tax in China?
The withholding tax in China is imposed on dividends and royalties which foreigners pay in this country, and it is established at a rate of 10%, unless stated otherwise in a tax treaty. Our consultants can offer a detailed presentation on other tax rates that can be applied in this case.
What are the employment tax rates in China?
Tax rates may vary based on the region, as follows:
- pension – 8% (the employee) and 16% (the employer);
- medical – 2% (the employee) and 6,85% (the employer in Guangzhou), 9% (the employer in Shanghai), 9.8% (the employer in Beijing);
- work-related injuries – paid by the employer at rates ranging from 0.2% to 1.4% in Guangzhou and 0.2% to 1.9% in other regions.
Is China a signatory state of double tax treaties?
Yes,China has signed treaties for the avoidance of double taxation, which means that foreign entrepreneurs can benefit from the provisions of these treaties in order to avoid double taxation.
Please do not hesitate to contact ourteam of company incorporation specialists in China for complete support in taxation matters.
