Other Briefings
China Announces US$55.2 billion in Tax Cuts
China’s State Council has approved RMB 380 billion (US$55.2 billion) worth of tax cuts for businesses and individuals, including streamlining of the VAT system. This article explores the various tax items being reduced, and the impacts for foreign investors.
Tax, Accounting and Audit in China 2017 – New Publication from China Briefing
Tax, Accounting, and Audit in China 2017 is now available for download in the Asia Briefing Publication Store. The guide offers a comprehensive overview of the major taxes that foreign investors are likely to encounter when establishing or operating a business in China, as well as other tax-relevant obligations.
China’s Tax Residency Certificate: Implications for DTA Benefits
Obtaining China’s tax residency certificate can be necessary for foreign companies are able to benefit from Double Taxation Agreements. Here, we look at the application procedure, considerations for foreign companies, and present a real case study to illustrate the process.
Calculating Taxes and Duties for Import into China
For foreign trading companies engaged in the business of selling (or import) to China, it is wise to be fully clear about the relevant tax issues before rushing into any sales contracts. The amount of import taxes and who would ultimately be liable for those taxes largely depends on how the sales contract is concluded between the foreign seller and the Chinese buyer.
Withholding Tax in China
Corporate withholding tax is levied on the income of foreign enterprises that do not have a physical establishment in China, but provide services to China-based businesses. In this article, we provide an overview of withholding tax in China, what income types are subject to it, and the updated tax rates for dividends under tax treaties.
China Plans to Cut Corporate and Personal Tax Rates
Last week, China’s Premier Li Keqiang announced that the government plans to cut corporate and personal tax rates. The plans include simplification of the value-added tax structure, and the reduction of corporate income tax and individual income tax rates.
Revisiting Tax Incentives for R&D Activities in China
China’s 13th Five Year Plan focuses on science and technology innovation, and has subsequently released regulation standardizing tax incentives for R&D expenses. Here we clarify the requirements and scope of R&D activities, and the application materials and process for enjoying the incentives offered.
Cracking Down on Pollutants: Comprehending China’s New Environmental Protection Tax Law
In December 2016, the National People’s Congress promulgated China’s first Environmental Protection Tax Law. The Law, which comes into effect January 1, 2018, provides guidelines for levying taxes on entities that emit air and water pollutants, solid wastes, as well as noise pollution.
