China’s new individual income tax (IIT) law will bring a host of changes to taxation in the country – including the tax treatment of foreigners.
China increased its export tax rebates for 391 items from September 15 to benefit steel products, LEDs, and semiconductor components, among other major exports.
China passed a new individual income tax (IIT) law on August 31, marking a significant reform to tax policy. In this article, we look at the major changes and implications of the new law.
On August 30, China’s State Council announced RMB 45 billion (US$6.59 billion) worth of tax cuts for businesses and investors.
China offers a number of preferential corporate income tax policies for businesses operating in the country. These preferential tax treatments, however, do not automatically apply – businesses must first determine their eligibility and carry out the appropriate steps to benefit from the incentives.
Value-added tax (VAT) applies to goods and services in China. However, zero-rated transactions and VAT-exempt transactions are two ways in which the taxpayer can benefit from VAT relief.
Tax authorities in China heavily scrutinize intra-group service fees paid by Chinese enterprises to the overseas-related parties to regulate tax avoidance and profit shifting.
China has unveiled a series of Draft Amendments to its IIT Laws, which are intended to boost consumption while combating the effects of rising living costs.