Other Briefings
New Issue of China Briefing Magazine: Closing Down Representative Offices and Liquidating Businesses in China
Feb. 8 – In this new issue of China Briefing, we take a look at the procedures for closing down representative offices and liquidating businesses in China. With the global financial crisis slowly beginning to ease and China’s economic growth in steady recovery, many foreign investors are again considering China. However, the chaos of the […]
Scope of Complaints for Tax Payment Services
Feb. 8 – The State Administration of Taxation has released new measures for tax payment services complaints effective January 1, 2010. It explains the scope of complaints on tax payment services and protects taxpayers from abusive behavior from tax authorities including failing to provide the relevant services according to taxation regulations in terms of publicity, […]
Individual Income Tax Treatment for Annuity Contributions
Feb. 5 – The State Administration of Taxation’s Circular 694 advises on how to compute for individual income tax (IIT) for contributions made to company annuity plans set up by employers. A corporate annuity plan is a supplementary pension funded by contributions from both employers and employees. It is a common practice in China practiced […]
Corporate Tax for Construction Companies Clarified
Feb. 4 – The State Administration of Taxation has released a circular explaining applied corporate income tax for construction companies. The circular instructs trans-regional construction enterprises implementing the head office and branch office systems to calculate and pay for CIT tax following the provisions stated in Guoshuifa [2008] Document No. 28 issued in 2008 and […]
China’s Annual Tax Revenues Increase by 9 Percent to US$928 Billion
Feb. 1 – The State Administration of Taxation announced that annual tax revenues for 2009 rose by 9.1 percent to RMB6.31 trillion or US$928 billion despite rebates and subsidies enforced last year as part of its stimulus plan. Local retail sales tax revenues increased by 85.4 percent to RMB476.1 billion spurred by government efforts to […]
Corporate Income Tax Treatments for Asset Losses Clarified
Jan. 29 – The State Administration of Taxation clarified corporate income tax treatment of asset losses not deducted in the year incurred. Circular Guoshuihan [2009] No. 772, issued by the SAT on December 31, 2009, further clarifies that for any asset losses, the principle set in Circular Guoshuihan [2009] No. 88 apply regardless of whether […]
Tax Clearance Requirements when Leaving Hong Kong
HONG KONG, Jan. 28 – For employees chargeable to tax and intending to leave Hong Kong for more than a month, the Inland Revenue Department (IRD) requires at least 1 month notification before departure to settle all tax liabilities. This applies to cases when a taxpayer intends to migrate to another country or to study […]
Low Profit Companies Eligible for Preferential Tax Treatment
Jan. 27 – China’s State Administration of Taxation has released a circular announcing a one year preferential tax treatment for small and low-profit companies. Companies with a taxable income of less than RMB30,000 will be eligible to have 50 percent of their income taxes levied as the taxable income and pay an income tax rate […]
